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Employer branding is increasingly important for businesses, research shows.

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Poor employer branding could reduce potential job candidates by half, a new study has suggested.

Research from LinkedIn found that a company’s reputation was more important to jobseekers than pay or benefits when it came to deciding on a job, with 53 per cent admitting they would turn down an offer from an organisation known for poor job security, dysfunctional teams or inadequate leadership.

An unsatisfactory reference from existing or previous staff along with a weak reputation among peers were also key reasons for jobseekers to decline offers.

LinkedIN explained that a poor reputation could be costing employers money while restricting their choice of staff, with the study showing that businesses that do not invest in their employer brand may pay an extra £2,270 per hire in comparison to organisations with a good reputation. 

Businesses with good reputations could also add up to £4,080,000 to the yearly wage bill for an organisation with 10,000 employees.

Chris Brown, director of LI Talent Solutions UK, said: “Our report shows that a poor employer brand or reputation does not just make it harder to find the best staff, but also impacts a company’s bottom line. 

“In addition to simply attracting better employees, a strong employer brand helps employee retention and engagement, so the true value is even greater than this data suggests.”

Managers aiming to appeal to the best workers should revisit the benefits they provide to staff and analyse their effectiveness. 

Mr Brown stressed that companies need to promote the benefits and attractions of their company more effectively in order to boost recruitment, resourcing and talent professionals.

Over a third of workers (36 per cent) said flexible working arrangements and evidence of a passive working culture could persuade people to choose one job over another.


Posted by Jon Aspinell on 2nd July 2015

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