How to measure your Employer Branding ROI

By Irina Nagy

We at MyPeopleBiz have come to understand how critical it is for organisations to completely understand the importance and benefits of developing an employer brand to attract engage and retain talent. So now we are looking at a much more difficult task – how to measure the ROI of all your employer brand strategy.

As everyone knows, employer branding is crucial for companies to engage as well as retain employees, to reduce cost per hire and complement traditional branding efforts. Because the practice is still very new, defining its ROI in specific terms that have wide agreement can be quite challenging.

Before you jump into any measurements make sure you understand your audience and align your employer branding metrics to your business objectives. Be very clear on what you are going to measure and remember that your employer branding metrics should be reliable and predictive. Use channels that will extend your market reach and add a fully customized career site to your corporate website to:

• Provide background information on your company, culture and values
• Have your jobs benefit from a presence on all relevant social networking sites
• Connect with candidates through multiple channels
• Create referral schemes
• Advertise all your jobs on wide range of job boards to generate more candidates
• Easily manage the entire recruitment process and employer image

Certain results can be measured with a high degree of accuracy and according to the statistics found in an EBI study (Employer Branding International) there are several different possible metrics to use when considering your ROI of employer branding:

• Employee satisfaction  – closely related to employer brand just because organisations with better brands are perceived to be better places to work
• Employee engagement  – measured by length of service, turnover statistics and targeted surveys
• Quality of hire – the ability, education and credentials of the qualified applicants to a position is extremely important. The more qualified the applicants, the better the brand
• Time and cost per hire  – will be considerably reduced if a company is using an intelligent ATS system
• Job acceptance rate of candidates
• Number of applicants
• Employee turnover – a leading indicator and measurement of employer brand. In general, an increase in employee turnover is indicative of a weaker brand
• Increased level of employee referrals – a clear evidence that employees believe the company is a good place to work
• Decreased absenteeism

Other less traditional measures include promotion readiness rating, external/internal hire ratio, performance ratings of newly promoted managers and manager/executive failure rate.

All these measures will help you monitor and track results. By measuring your results and getting an understanding of what works and what doesn’t you’ll be able to communicate your employer brand easily and hassle free.

Whether you have been managing your employer brand for a long time or you are very new to this, you’ll have to keep in mind that your employer brand is extremely important to your relationship with prospective employees and their whole application experience. We at MyPeopleBiz are happy to use our artificial intelligence technology and help you boost your employer branding efforts, reduce your recruitment costs, increase your company’s level of referrals and provide your candidates with a more fulfilling job hunting and application experience.

Contact us for details or if you have any questions and comments. We look forward to hearing back from you.