Although investing heavily in Employer Branding and Employee Experience is definitely ‘in-vogue’, it must serve a strategic purpose for your organisation, rather than being just another box to tick. Lets read more about Employer Brand Strategy…
According to Universum (2019), Employer Branding has gone from being a ‘nice-to-have’ to being mission critical for both large and small organisations. This shift is for a number of reasons but primarily due to stiff competition, colloquially known as the ‘war on talent’, which has pushed C-level executives to consider the tangible impact an unrefined Employer Brand has on profit.
You should identify your Employer Branding objectives and quantify how these will be measured in relation to return-on-investment. To help you in this process, we have identified three key areas we would recommend tracking to check the health of your Employer Brand. You should measure each area retrospectively to begin with and work on improving each metric through refining your Employer Brand.
Hiring Cost per Head
It is only once you have a comprehensive cost-per-hire figure to work with that you can begin measuring it against your Employer Brand. Experts believe a strong Employer Brand will reduce this cost by up to 50% (Linked In, 2016). This may seem like an obvious one. However, it isn’t so much about measuring your hiring costs, but what you include in this total that we wanted to highlight. It’s important you spend time analysing the full cost per hire for your organisation. This will be different for different departments and grades however doing the work on this piece is essential. You must analyse time costs as well as monetary costs to get a true reflection on your outlay per hire. Each organisation will have a specific set of costs however some that we see occurring across a number of our clients are recruitment agency fees, job advertising budgets, time-to-train for both your new hire and senior trainer, teething problems with your new hire (which last on-average 9 months) and time-to-select including shortlisting and interviewing. If you are interested in improving your Employer Brand Strategy and for a full cost-per-hire analysis, please reach out to firstname.lastname@example.org to speak to a consultant.
Although this one isn’t quite as easy to quantify as your cost per hire, it can be measured and is perhaps one of the most useful metrics for Employer Branding success. An excellent Employer Brand will increase qualified applicants per hire by 50% (Linked In 2016). One of the key goals for your Employer Brand is that you are hiring people who will add value and contribute to your revenue goals, whether directly or indirectly. This means that you must ensure your Employer Brand is attractive to the kind of high-calibre talent you want to attract, in other words, your target talent persona. Otherwise, your cost per hire may be low and your applicants per hire high, but the quality of talent could be substandard. If this happens, you may face doubling your cost per hire if the person doesn’t last or cannot fulfil the role at hand. Equally, if you attract a high-quality person, they will go over and above what you expected from them and thus you will have a positive return-on-investment. There are many ways to measure candidate quality however the easiest way is to sit down with your hiring manager prior to recruiting and set a specific criteria. Some of this will feed into the job spec and some will be for internal use. Approximately 6 months after the person starts in the role, review with the same hiring manager and apply a score to each of the criteria relating to how closely the person fulfils your hiring objective. You may like to quantify this in terms of cost or future potential cost to further define the ROI.
Time to Fill
Improving on this particular metric is a powerful asset to continuity of business. Even those organisations with a stellar employee experience and brand are exposed to attrition from time to time. Decreasing the time it takes for you to fill an open role makes this experience a lot less painful. Employer Branding is the most impactful way to achieve this as a good reputation among your target people will grow the pool of people you have available to you at any one time. You should assign a value to each day a role remains open and start to measure the impact your Employer Branding efforts have on this. You will find that as you refine your brand you will see your time to fill drop to almost zero as you will be able to draw from the talent pool you have built. Key ways to begin filling this pipeline is to invite candidates to submit their CV even when you aren’t actively hiring someone in their field, to keep in contact with previous rejected candidates as they may be perfect for a role in the future and to ensure your Employer Brand is creating brand advocates in the target talent community you are trying to appeal to.
Although we have focused on these three key metrics today, there are many ways you may choose to measure return-on-investment for your Employer Brand. Some other great ways are Company Reputation, Employee Engagement and Employee Retention although the list is not exhaustive.
If you are investing in your talent pipeline and Employer Brand it is essential that you know what this does for your bottom line so you can measure and improve year-on-year. If you have not yet begun working on your Employer Brand it is essential that you audit each of your key metrics first and foremost to see how they improve. Employer Branding is no longer a ‘nice-to-have’, it is mission critical.
Getting your Employer Brand Strategy right is paramount to a successful talent strategy, if you would like to start working on yours today please contact us at email@example.com where we can assist with your bespoke objectives.