Employee retention is one of the most significant problems with most companies.
However, there are a few who have mastered the market and have applicants flooding to the HR Department.
Employer branding: how to build a company everyone wants to work for
Everybody wants to work for Apple, Google or Microsoft.
Whether your company is just starting out or trying to revamp, it doesn’t matter.
You need to build your employer brand experience so that employees find your business attractive and never want to leave.
What is employer brand building?
Before answering this question, let me elaborate on what a brand is.
Building a brand experience is forming an opinion in the mind of your customers based on how they were treated, the product’s quality, and their overall interaction.
Why do you think that people pay nearly $5.00 for a cup of coffee at Starbucks when they can get the same stuff for $3.00 less down the street?
It’s because the brand has a name and the other company likely doesn’t.
Starbucks can ask more for their products because people know the quality. They also enjoy the experience they have while in the establishment.
The difference in one coffee shop from another is their employees and product.
Would you be willing to pay more for your Java if it came with a smile and a wide selection of pastries too?
You will remember your experience based on the employee and product.
Building an employer brand experience is not any different. Employer branding is all about companies–the employers–investing in their employees to touch the customer.
Why the “employee first” policy works
Companies are learning that they must invest in their employees to create an incredible place to work.
It can have a significant impact on the company’s ability to stay competitive.
Remember, you only are as good as the people standing behind you and represent you.
Take Zappos, for instance.
This is a billion-dollar company that has mastered the art of taking care of its own.
The CEO, Tony Hsieh, is only 44 years old.
He wasn’t the first owner of Zappos, but he took over just as the company was going under.
He changed things by investing in his employees. He dedicated his whole focus to employee empowerment.
Sure, he was concerned about the numbers, but he wanted to build from the bottom up.
Today, all new hires are given an incentive to work for this company. They are offered $2,000 if they want to leave.
Yes, Zappos will pay their new-hires a ton of money if they don’t like the job enough to stay.
It might be a good idea to consider starting your own employee incentive program to motivate your employees.
You could model it after Zappos’ or you could create your own.
What Hsieh did was create an environment that makes people want to work.
The Zappos offices have a petting zoo, robotic popcorn machine, nap room, bowling alley, and even specialized days like “Bald and Blue.”
Overtime is not a problem here.
Employees want to invest their time and selves for a company who cares so much about them.
Why is employer branding building imperative?
Hiring and retaining employees is a large cost to any organization.
For instance, it takes about 40 days to hire someone, and it can cost over $4,000.
If an employee quits, replacing them and training someone new can cost up to the equivalent of a nine-month salary.
Since most employers use external recruiting agencies, they charge anywhere from 15-25 percent to the first-year salary.
Shockingly, it can take up to two years for a new hire to reach the potential of the person’s position they filled.
All these reasons make it clear why investing in employees and employer branding building makes sense.
When looking for a new job, most people head to the internet to conduct their search.
While they care about the salary, they want to know the reputation of the company.
Social media has changed everything about job hunting. Companies, and their flaws have now become transparent.
Forget recruitment advertising; people are going to read the reviews of past and present employees.
They will form their views based on the opinions of others.
Good employees may pass over a fantastic opportunity based on the negative experience someone else posted.
Investing in your employees is the best way to build a company that everyone wants to work for.
What do you think? How does your company go about employer brand building? I would love to hear your thoughts in the comments below!
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