Measuring The ROI Of Employer Branding

14th Aug 2023

Navigating the fiercely competitive job market has become a challenge for many companies, and you are not alone in facing this uphill battle.

Your team are the key to your company’s success. It’s impossible for a company to grow without the best possible people on the team. We all know that, but there’s an underused strategy that will help you achieve this goal  – and that is building a strong Employer Brand that resonates with potential employees.

Employer Branding is not just another buzzword; it's a strategic approach with the potential to hugely impact your company's ability to attract and retain top talent.
Measuring the true impact of Employer Branding on your bottom line may seem like a daunting task, but it's possible. Let's Look into this challenge and see how you can effectively quantify the influence of Employer Branding on your company’s success.

The challenge of measuring ROI on Employer Branding

Quantifying the return on investment for Employer Branding initiatives is undoubtedly a challenging task. 

Unlike other marketing strategies, such as paid campaigns, the results of Employer Branding might not always translate directly into tangible metrics. 

However, neglecting to measure the ROI of Employer Branding is a missed opportunity in understanding its impact on talent acquisition and your overall company success. 

So what metrics should you be looking at? 

Key metrics for measuring Employer Branding ROI

Here are several key metrics that will help you effectively measure the impact of your Employer Branding efforts and demonstrate ROI. 

Applicant conversion rate - measure the rate at which candidates progress through your application process. A high conversion rate suggests that candidates are motivated to complete the application. Low conversion rates, where the applicant abandons the application part way through, suggest that the candidates didn’t feel connected enough to your company to work through the barriers of application. 

💰If your applicant conversion rate is high you’ll be able to find the right candidates much quicker. Meaning less time, money and resources spent on hiring. 

DEI representation - assess the representation of different demographics within your workforce, including gender, ethnicity, age, and other diversity dimensions. Compare these metrics to industry benchmarks and track progress over time. Make sure to use our DEI audit tracker to guide you in analysing this data. 

💰By having access to a larger and more diverse pool of candidates, the hiring process becomes more manageable, making it easier to find the right people for your company. You also increase the likelihood of retaining employees, resulting in significant cost savings on hiring, onboarding, and training expenses.

Time-to-fill - track the time it takes to fill job openings from the moment they are posted. A shorter time-to-fill suggests the effectiveness of your Employer Brand in attracting qualified candidates for a streamlined recruitment process. 

💰You’ll save recruitment costs by being able to hire at speed, there will be less disruption in the company, and you’ll lower switching costs.  

Offer acceptance rate - measure the percentage of candidates who accept job offers. A high acceptance rate signifies that candidates are genuinely interested in joining your company.

💰When candidates demonstrate eagerness to work for your company, especially if they had competing offers, it shows that they specifically wanted to work with you.  People feeling connected to your company means the likelihood of retaining employees long-term is higher, leading to cost savings in recruitment and training expenses.

Employee referral rate - monitor the percentage of new hires that come through employee referrals. A high referral rate shows that your employees are proud to advocate for your Employer Brand, and that they truly believe your company is a great place to work. 

💰You can save costs and time spent hiring if your referral rate is high because it both increases the number of qualified and culturally aligned candidates, and saves recruitment fees. 

Cost per hire - calculate the cost incurred to attract and hire candidates. Lowering the cost per hire indicates efficient Employer Branding strategies that attract quality candidates while optimising recruitment expenses.

💰If you’re cost per hire is low, the ROI speaks for itself. Spending money higher up in the funnel, on Employer Brand for example, pays off down the line when you can easily and cheaply fill roles. 

The strategic impact of Employer Branding

Measuring the ROI of Employer Branding goes beyond crunching numbers; it's about understanding the strategic impact on your company's success. 

A compelling Employer Brand can help:

  • Attract and retain top talent - the best candidates want to work for the best employers. A strong Employer Brand can act as a differentiator, luring top talent away from competitors and encouraging them to stay long-term.
  • Boost employee productivity - engaged employees who feel aligned with their employer's values and culture are more likely to be productive and go the extra mile in their roles.
  • Enhance company reputation - a positive Employer Brand not only attracts potential employees but also improves your overall reputation. This reputation can positively influence how customers, partners and candidates perceive your company.
  • Nurture a high-performing culture - a well-crafted Employer Brand communicates your company’s expectations and values, attracting candidates who are more likely to thrive within your company's culture.

We’re not saying this is an easy task, but with the right tools it certainly it doesn't have to be difficult. 

And by focusing on key metrics and understanding their broader impact, you can secure your position as an employer of choice in the competitive marketplace.