A Complete guide to measuring Employer Brand Effectiveness
Companies increasingly recognise the potential of developing an employer brand in order to enhance their ability to attract, recruit and retain top talent. Research from PwC suggests that 93 percent of CEOs recognise the need to change their strategy to attract and retain talent, but 61 percent are yet to take any steps to address this.So is your organisation clear on what it wants to achieve from its employer branding activities? Are you focusing on the right areas and seeing a return on investment? When looking at the difference your employer branding strategy is making, here are the metrics to focus on to keep you on track…
Number of applicants
Especially if a typical recruitment campaign involves filling multiple, junior-level positions, this metric becomes especially relevant. It tells you the extent to which your employer branding strategy is casting a wide net: in other words, if sheer volume is stubbornly low, it may be that you are not doing enough to get on the radar of potential applicants.
Quality of applicants
Business group, EEF recently highlighted how the majority of businesses recruiting for skilled roles were struggling to attract a sufficient number of applicants. But that study also showed the quality of applicants was a greater issue, with more than 60% reporting that applicants lacked technical skills.
This metric becomes most relevant at the early ‘paper sift’ phase of the recruitment process. If you are routinely rejecting huge swathes of CVs and struggling to identify potential candidates of suitable calibre, this is a good sign that more needs to be done to hone your brand to appeal to skilled, quality recruits.
Cost per hire
For this, it’s necessary to put a price on the direct outlay, the time and the resources that go into your employer branding efforts. Next, apportion these and add them to the additional costs associated with each hire such as recruitment agency fees. Ideally, you should find that overall costs are declining: an investment in branding can lead to a boost in recruitment through more cost-effective, ‘organic’ means such as referrals and via social media, and a corresponding reduced spend on agents and paid advertising.
A study released earlier this year highlighted the consequences of rapid staff churn on customer service and staff morale. It also suggested that the overall costs associated with replacing a staff member can be upwards of £30,000 and that it takes up to 28 weeks for a new starter to reach optimum productivity. Your ability to keep staff on board should be a key business concern.
Look at your workforce and monitor retention weeks at set stages. These might be the number of staff who remain employed after the end of the induction period, after six months, a year, three years and longer. A high attrition rate in the induction stage may indicate that you are not focusing sufficiently on onboarding; i.e. reinforcing your employer brand proposition with new hires. Here, ask yourself whether enough is being done to integrate new staff into the organisation and to clearly define their role within it.
Equally, if there is a high turnover after a year or two, consider what needs to be done to enhance your employer brand in the eyes of existing staff. Ask whether enough is being done to meet expectations and highlight the opportunities that exist for the future. Regular reviews and appraisals can assist you with this.
By focusing on these key metrics, companies can see where they are getting things right with their current employer branding and can identify where there’s room for further improvement.