The hidden ROI of Employer Branding
You’ve just launched a new job advert. The role is great, the salary is competitive, and the benefits are solid. But after two weeks, barely any quality applications have come through. Sound familiar?
What many companies overlook is that job adverts aren’t the only thing that is going to entice someone to apply for your role – Candidates are also judging you as an employer. And that’s where your employer brand can make or break the process.
Beyond just looking attractive to job seekers, employer branding carries a powerful and often underestimated business value: return on investment (ROI). From reduced hiring costs to better retention, a strong employer brand delivers tangible results across the board.
Below we’ve outlined why your employer brand might just be the smartest investment your company can make this year.
What is Employer Branding – really?
At its core, employer branding is the perception people have of your company as a place to work. It’s shaped by everything from employee reviews and social media content to your hiring process and how current staff talk about their experience.
Strong employer branding isn’t just about looking good online – It’s about being consistent and trustworthy in how you show up as an employer.
The real cost of a weak Employer Brand
Before we look at the return, it’s worth acknowledging the cost of not having a compelling employer brand. Research shows:
- 69% of jobseekers wouldn’t take a job at a company with a bad reputation – even if they were unemployed, according to Glassdoor.
- According to LinkedIn, a poor employer brand can increase your cost-per-hire by up to 10%
- Companies with weak branding need to offer higher salaries to compensate, up to £4,500 more per hire on average, according to LinkedIn.
The ROI of Employer Branding
1 – Lower cost per hire
A strong brand brings in better-matched candidates organically, often through referrals, content, or passive interest. That means less spend on advertising, recruiters, and time-consuming CV sifting.
2 – Shorter time to hire
Companies with a well-known reputation as great places to work often have candidates queuing up before roles even go live. This speed is crucial in high-demand markets, where top talent can be snapped up in days.
3 – Improved candidate quality
When your employer brand is clear and consistent, you attract candidates who actually align with your values and culture. That leads to higher performance, smoother onboarding, and a better long-term fit.
4 – Reduced employee turnover
Branding isn’t just external. A strong internal culture – and the communications of it – keep your team engaged and proud to be part of the mission. That means better retention, lower recruitment spend, and a more stable workforce.
5 – Higher employee advocacy
Your current team becomes your biggest marketing asset. Happy employees share their experiences, refer friends, and leave positive reviews. Word of mouth is incredibly powerful and completely free!
Investing in employer branding isn’t just about attracting talent – it’s about attracting the right talent, faster and more affordably. And in a market where the best candidates have options, your brand is your edge.
Whether you’re hiring one person or one hundred, the message is clear: a strong employer brand doesn’t just look good – it pays off!