What employer branding means, how it differs from recruitment marketing, and the internal and external levers used to build an employer brand.
In the competition for talent, employer branding has become a key topic for many companies. But what is behind the term? And how do you build a strong employer brand? We have taken a closer look at the subject.
Digitalization, demographic change, and globalization are the primary drivers of the ongoing skills shortage that will continue to affect us in the coming years. The fact is: the power dynamic in the labor market has shifted. It is no longer the employers who can choose from numerous applicants. Today, candidates are selectively choosing their workplace and are well aware of their value as qualified professionals.
The still-common practice of "post and pray"—placing a job advertisement as the sole measure to generate applications—is no longer enough. Companies must explore new avenues in recruitment to fill vacancies in the long term and retain employees. This is where employer branding comes into play.
"Employer branding refers to the development and maintenance of a company as an employer brand." Source: Gabler Wirtschaftslexikon
The term describes the process of brand building through various analyses, strategies, and measures. The "employer brand" is the resulting identity of the company as an employer. This draws on established concepts and methods from traditional (HR) marketing and brand development.
The overarching goal of employer branding is to position the company as an attractive employer in the market, stand out from the competition, and thereby attract and retain new employees in the long term. The most important aspect is a credible employer brand that communicates the company's values and culture.
Employer branding and HR marketing are often used synonymously, but they differ significantly. Employer branding is the overarching approach used to define, build, and maintain the employer brand. This includes strategic decisions such as defining the Employer Value Proposition (EVP) and corporate values, as well as target group and competitor analyses. Employer branding works both externally and internally.
HR marketing describes the operational measures used to communicate a message. It builds on the insights and decisions from the employer branding process and defines the concrete approach for external-facing activities.
Internal employer branding focuses on long-term retention of existing staff. What motivates employees? How do you create a corporate culture in which employees feel comfortable? Which values can and do employees want to identify with?
It is important that this does not remain just theoretical or empty promises. Values must be lived out in everyday life, ideally long before they are incorporated into employer branding. This is the only way to create satisfied employees who stay with the company longer, recommend it to others, and perhaps even become brand ambassadors.
Possible levers for internal employer branding include:
It makes sense to involve employees in the employer branding process. This allows them to help shape the outcome and fosters a stronger identification with the employer brand and company values moving forward.
External employer branding is directed outward. Its primary goal is to attract new employees. This is achieved when the company is perceived as an attractive employer and clearly stands out from competitors. This convinces potential candidates to apply.
The same applies here: the employer promise communicated externally must be reflected in the employees' day-to-day experience. Otherwise, new hires' expectations will be disappointed shortly after they join, and they will quickly look for something new. An authentic employer brand also gives talent the opportunity to align their own values and expectations with those of the company. The more transparent the employer brand, the better the fit of the applications. This simplifies the recruiting process and reduces turnover and costs in the long term.
Possible communication channels for external employer branding include:
The specific measures depend on the company's circumstances, the target audience, and the company's goals. Analysis, adjustment, and review are ongoing processes; otherwise, the success of employer branding cannot be assessed. The process is roughly divided into these steps:
Employer branding is a strategic approach to strengthening the employer brand and positioning the company as an attractive employer. Internal and external measures help to attract talent, retain existing employees, and shape the company's public image. An authentic and consistent employer brand is crucial: it makes the difference compared to competitors.
