Employer Brand Equity is Critical, Even When You're Not Hiring
Date: January 17, 2023
Time Reading: 3 min.
By: Sara Seabourne, Head of People and Culture at BlueOcean
During an economic downturn or recession – when many companies experience major layoffs, hiring freezes, or the dreaded morale budget cuts – it remains absolutely essential to continue investing in your employer brand, even if you might not be hiring at this time.
It seems a bit intuitive these days that an employer brand is a critical factor in attracting and retaining top talent. It can help you stand out in a crowded job market, and according to research from Harvard Business Review, it can even help you to attract talent at lower cost (A Bad Reputation Costs a Company at Least 10% More Per Hire).
On top of all those benefits, it turns out employer brand is tremendously important to a company’s revenue outcomes. Research conducted on our BlueOcean data platform, showed that 75% of companies whose employees showed positive employee support (across platforms like Glassdoor), also showed an increase in revenue over time. Notably, this correlation was stronger than any other single brand metric analyzed.
At a closer glance, this isn’t too surprising. Employees publicly recommending their workplace to others is usually a sign of high productivity, strong company culture, and a cohesive brand mission that unites people across various roles. As the heart of a company, employees help to keep a brand on track and hit tangible productivity goals, but only do so consistently if they feel positive about their place of work.
Conversely, unhappy employees can also have a detrimental impact on brand health and company outcomes. Dissatisfied employees are more inclined to publicly criticize their own company, meaning that long-simmering issues such as internal disorganization, toxic culture, and miscommunication within the company are rising to the surface. Furthermore, it’s nearly impossible to deliver great products, delightful customer experiences, and execute revenue generating GTM strategies if employees are unhappy and prone to turnover.
Here are a few tips for maintaining your employer brand during an economic slowdown or recession:
- Communicate openly and transparently with employees about the state of the company and any changes that may be happening as a result of the economic climate.
- Offer support and resources to help employees adapt to any changes and navigate the challenges of the downturn.
- Continue to invest in employee development and training, as this can help boost morale and maintain a positive company culture.
- Maintain a positive employer reputation by continuing to provide a positive work experience for employees, even during tough times.
- Stay active on social media and other online platforms to keep your employer brand visible and engage with potential job candidates.
