Due to the dynamic environment among leading and competing organizations, acquiring and retaining the best and most qualified employees is critical for the survival of the organization and to gain a competitive advantage over other competing organizations.
It is not difficult to see from observation that human resources are the primary resource of an organization. In an increasingly saturated labor market, employment and retaining quality human resources have become core goals for businesses and employers.
To remain competitive, companies must take steps to ensure talent acquisition and retention. The business focuses on integrating brand principles with strategic human resource management and practices.
How do the effect the employer branding for Employee Retention
Employer branding helps improve recruitment in an organization and helps reduce recruitment costs. It also plays a vital role in improving employee retention in a company, thereby reducing employee turnover. It is crucial that when building a positive employer brand in an organization, managers understand the importance of certain factors that play a significant role in attracting potential employees to join the company.
- Employer branding is an expanding, contemporary approach to maintaining a company's reputation in attracting and retaining employees.
- Organizations care about what their employees think of them as an employer. Employer branding not only increases employee loyalty and retention, but also enhances people's urge to work for the organization, so employee word-of-mouth is important, whether negative or positive.
- Employer branding is a method of employer retention as it has a great impact on the entire employment experience as it also encourages a good working environment while reducing voluntary turnover.
- Organizations with a strong brand image can acquire employees at relatively low costs, improve employee relations, increase employee retention, and offer lower salary levels than competitors.
Employer branding encompasses three key benefits for an organization related to recruitment, retention and performance. The recruitment process is often very expensive due to advertising and can only reach a specific number of people. For companies with a strong employer brand, the recruitment process will produce a pool of talented employees without incurring advertising costs. Due to the good reputation of the company as an employer, most of the capable and talented workers will look for vacancies in that particular company, which will reduce the cost of the recruitment process.
How do the employee retain because of Employer Brand (HR perspective) -
1. Employee Onboarding - Employee onboarding process is first process for the new comer to knowing about the company and its culture details. Therefore facilitating the clear and well organized onboarding procedure which may lead to retain the company and having good impression, may create trust , quickly adapt to the organization.
Eg : Zoppos - company having best and unique onboarding process. They do different things for recruit the new peoples and they are highly committed to recruit the best candidate with fit for company culture. Company will pay the $4000 to leave for new hires if they feel them are not suitable for the company and they have made the wrong decision in accepting the job offer.
2. Increase the salary and Benefits
Offering the reasonable and fair salaries for considering market value, most of employees are attract and retain the company because company paying decent salaries for their service. That will encourage, motivate , loyalty and lower turnover rate. Further company provided the flexible work scheduled , other benefits (Insurance, Bonus) or opportunities to professionally growth.
Eg : Syscolabs
3. Job Security
Important fact is employee may consider before the accept the job offer. Candidate may be search and will monitor about company past experience, if any layoff, many employee may experienced and depressed because of company or job position. If the company have bad image of this employee may not be apply or accept the job offer. Employer branding do the major role on that, creating the strong employer brand among the competitors.
How to the theories effect to Employer Branding & Employee Retention
1. Resource Based View
According Kidombo,Et al, (2018)Employees are a key resource to the organization required to implement organizational functions and to compete effectively in a given industry. Attracting and retaining skilled people (human resources) is equally important as acquiring the equipment or technological resources that are required to build competitive advantage(Backhaus & Tikko, 2004). Attracting and retaining the right of people with the required skills mix is which are combination of the branding proposition and a range of recruitment, selection, retention and performance management strategies.
2. Brand Equity Theory
According human resource aspect positive regard for employer encourage to the potential applicant to apply the current employee and retain the employer which constitute employer brand equity. Kidombo,Et al, (2018) pg:523
Employer Brand Model
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| Figure 01Empoyer Brand Model. Source:(Gilani,2017) |
According to the Gilani (2017) stated the there are positive outcome of the employer branding and employee commitment, retention, employee performance, attraction, job satisfaction. Those HRM function have inter connected with employer branding. Further that study reveal employers branding is increase the employee moral and satisfaction, finally which lead to the improve the employee retention.
HR Professional work toward the employer branding & employee retention process
The importance of employer branding in human resource management, specially the recruitment and retention process. It is already clear that it must be applied internally to before communicating the plan publicly to potential employees, it is important to communicate it to current employees to ensure the plan is successful. Purpose It’s about balancing expectations and therefore the potential employee’s desires with their actual values, positive impact on employee retention.
The initial challenge for HR is to define specific qualities which relevance to companies how it differs from competitors. Organizations can make the recruitment process more successful by using their employer brand in recruitment. Human resource management awareness if employer branding can be conveyed correctly to the people. Candidates who are a good fit for the company are more likely to apply, candidates who are not a good fit applicable, which means the organization's recruitment process needs to be rebalanced. There is always uncertainty Which company should be responsible for developing and promoting the employer's brand. most participants
As a HR manager what are the things can do for employee branding
1. Participate for Career fair - Most of universities have organized the job fair for final year undergraduates. As HR manager can make the arrangement for participate those events with employer brand promoting material.
2. Organizing the training & development program - Organizing the training programs for university students for specific area
3. Provide the Internship Program - Most of companies have facilitated the training opportunities for undergraduate for gain the industrial knowledge. That will benefits employer because free of message and good impression can be communicate as among the team
Eg: MAS, Brandix, Hemas..
4. Creating strong career page - Before apply the job position in the company employee are looking at the company webpage by ensuring company values.
5. Other Facilities such as career advancement- For retain the best talent employees company, can design the facilities such as business visits in aboard, loan facilities or sponsor to obtain the qualification.
Conclusion
Reviewing of the employer branding effect to the employee retention process, its positively effected which have reveal the above the article. Employer branding encompasses three key benefits for an organization related to recruitment, retention and performance. Potential candidate retentions is important to company rather than recruiting another candidate. Therefore employer branding is essential factor in the organization before the hire employee and retain within the organization.
Reference
Braxton and
Dunna (2024) Employer Branding And Its Impact On Talent Acquisition And
Retention (blog entry) 18 January. Available from https://www.linkedin.com/pulse/employer-branding-its-impact-talent-acquisition-retention-kyfuf/ (Accessed 12April 2024).
HadiI,N.U.and
Ahmed, S.(2018) Role of Employer Branding Dimensions on Employee Retention:
Evidence from Educational Sector (Online) Available from https://www.mdpi.com/2076-3387/8/3/44
(Accessed 13 April 2024).
Hasan,G.
and Lucy, C.(2017) Employer branding and its influence on employee retention: A
literature review. The Marketing Review. Vol 17. (Online). Available
from https://www.researchgate.net/publication/320104528_Employer_branding_and_its_influence_on_employee_retention_A_literature_review
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Employee Retention.Global Business Review,(Online). Available from https://drupal.alliance.edu.in/drupal/sites/default/files/2021-06/Exploring%20the%20Relationship%20between%20Employer%20Branding%20and%20Employee%20Retention.pdf
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Good article. You have studied lot of areas related to the topic and it gives a clear explanation to the reader on employer branding and benefits to the organisation.
ReplyDeleteAgreed, Talent management is very important in an organization. Employer branding will be really helpful to retain good employees while attracting others according to organizational needs.
ReplyDeleteVery informative article. By investing in employer branding initiatives and creating a positive work environment, organizations can retain their best talent and gain a competitive advantage in the marketplace.
ReplyDeleteGood article, benchmark salaries often to ensure competitiveness. Provide employee-focused benefits like health insurance, wellness programmes, and financial planning. Be upfront about pay and advancement.
ReplyDeleteGood article, benchmark salaries often to ensure competitiveness. Provide employee-focused benefits like health insurance, wellness programmes, and financial planning. Be upfront about pay and advancement.
ReplyDeleteEmployer branding is a crucial aspect of human resource management, particularly in the recruitment and retention process. It helps organizations improve recruitment, reduce recruitment costs, and increase employee retention, ultimately reducing employee turnover.
ReplyDeletevery informative blog, thank you!
ReplyDeleteI would like to share a fact - According to Great Place to Work’s report on Best Workplaces Asia 2015, the great workplace era emerges in Asia. The best places to work are becoming more conscious and prepared to act accordingly. Based on factors like employee trust, openness, levels of camaraderie, workplace culture, management's interest in its employees, and recognition and rewards, the survey names 60 companies as the 2015 Best Workplaces in Asia.- This shows how employee branding effects people's mindset towards their employer
Great article! Your comprehensive exploration of employer branding and its benefits to organizations offers valuable insights for readers. I appreciate the clear explanation provided, making it easier to understand the significance of this topic. Keep up the excellent work in sharing informative content!
ReplyDelete