At Best Companies Group, we love our data. We use data to honor the best of the best and create employer recognition rankings. We use data to create pathways for change for our clients.
And so today, I’m sharing some of the most powerful research we’ve found on the power of a proactive employer brand. Think of this as a cheat sheet for whenever someone in your organization asks: “Why do we even survey our people and participate in those best place to work things?”
The data is clear: because it help attract top talent, retain your best people, and even keep and acquire new customers.
So let’s dive into the numbers that tell that story.
Attracting and Retaining Top Talent
One study revealed that a staggering 92% of individuals consider switching jobs to a company with an excellent corporate reputation. This finding underscores the importance of employer branding in attracting and retaining top talent. Companies that prioritize employee well-being, growth opportunities, and a positive work culture often find it easier to attract highly skilled and top-performing candidates [source: Harvard Business Review].
The Role of Employer Recognition in Retention
Retention is a critical challenge for organizations, and one obstacle that frequently arises is the lack of insight into the employee experience during the application process. Research from Glassdoor indicates that a remarkable 84% of job seekers use a company’s reputation to inform their job applications. This means that showcasing a positive employer brand, which offers transparency and authenticity, can help overcome this hurdle and improve retention rates.
Moreover, job seekers today are not solely driven by financial compensation. A study published in the Harvard Business Review found that 9 out of 10 individuals are willing to sacrifice a percentage of their lifetime earnings for greater meaning and fulfillment at work. By cultivating a strong employer brand that emphasizes purpose and values, businesses can attract and retain employees who are motivated and engaged.
The Impact on Customer Behavior
Employer branding doesn’t only affect employee engagement; it also influences customer behavior and brand loyalty. Research conducted by Edelman, a global communications firm, revealed that 64% of consumers are belief-driven buyers who choose brands based on their values, including how they treat their employees. Customers are increasingly conscious of a company’s reputation, and their purchasing decisions are influenced by their perception of the brand’s treatment of its employees.
In fact, Forbes conducted a study that demonstrated a clear correlation between employee satisfaction and customer satisfaction. Companies with high employee satisfaction and positive work culture experienced a 24% higher customer satisfaction rate compared to those with low employee satisfaction. This further emphasizes the importance of fostering a strong employer brand that prioritizes employee well-being and creates a positive work environment.
The Consequences of Poor Employer Reputation
On the flip side, a negative employer reputation can have severe repercussions for a business. CareerArc’s research revealed that 71% of consumers have stopped purchasing from a brand after hearing news of poor employee treatment. Additionally, Deloitte’s study found that 65% of consumers actively avoid products or services from companies involved in employee-related controversies. This highlights the direct link between employer reputation, customer behavior, and overall business success.
What Can You Do About It
In today’s competitive business landscape, establishing a strong employer recognition brand is essential for attracting and retaining top talent, enhancing employee engagement, and influencing customer behavior. By prioritizing employee well-being, fostering a positive work culture, and showcasing your commitment to your employees, you can create a virtuous cycle that positively impacts your organization’s success.
To further enhance your employer recognition and reap the benefits of a strong employer brand, consider participating in an employer recognition program with Best Companies Group. Through our comprehensive assessment and certification process, you can gain valuable insights, benchmark your organization against industry leaders, and differentiate yourself as an employer of choice. Learn more here.
Investing in your employer brand is an investment in your future. Start building a reputation that attracts top talent, drives employee engagement, and captivates customers today!
Remember, your employees are the heart of your business, and a strong employer brand is the key to unlocking their full potential.
Stay tuned for more valuable insights on employee engagement, company culture, and business success.
