The case for Employer Branding? It’s simple:
Not building one is a cost.
Building one is an investment with incredible potential £££…
If you need to build a business case for an Employer Brand project, and you’re approaching the concept of Employer Branding as a cost, it’s time to turn that thought right around.
Not having an employer profile in the market is a cost. Not recruiting the right people is a cost. Not retaining good people is a cost. Not having a talent pipeline is a cost. Having an unengaged workforce is a cost. Having a bad reputation in the marketplace is a huge cost.
Employer branding is an investment. And it’s an investment that could offer a return in the millions, not thousands.
Take a look at how the figures stack up and find out how to make your case for a budget watertight…
With long experience of working with and for people like you, I know exactly what you’re up against when trying to build a business case for exploring an EVP and developing an Employer Brand. The conversations I’ve had with recruiters who know that people don’t get who they are or what they offer have been many. But the reluctance to ask for funding continues to be strong.
You might know it as a feeling that is intimidating. And it can be. How do you approach a board that just wants to see results in the short term?
When the Forum for In-House Recruiters recently asked me to write a guide about this, it made me think carefully about how we measure Employer Brand ROI. It’s a value that goes beyond the financial.
If you’re anticipating such a conversation and want to cover all your bases, I’ve put together a useful checklist that goes beyond initial, obvious opportunities to save costs and gets into much more valuable opportunities to create a return on your investment…
This is your fact-based, fully researched guide to creating a business case for an Employer Brand project that will exceed expectations.
No.1 – Save Agency Costs
Often the first and always a great place to start, this is something your hard-nosed board can get to grips with without too much explanation.
Savings related to agency spend are easy to measure and quick to achieve. Most bidding Resourcing Managers can ‘cover their costs’ and present savings on agency costs in the tens of thousands of pounds. Which is no bad thing.
But it’s just the tip of the iceberg.
No.2 – Target Turnover
If you have issues with staff turnover, an Employer Brand can address them.
Research carried out by LinkedIn demonstrates that investing in an Employer Brand can reduce turnover by 28%.
Let’s do the maths…
The CIPD put the average non-Executive cost-per-hire at £2,000. The latest membership survey from The FIRM shows that on average, their members hire between 100-500 staff per year. Let’s split the difference and say 250. So, if you reduce that 250 figure by 28%, that’s 70 people per year you no longer have to hire at £2,000 per hire. So that’s £140,000 saved for your average organisation through reduced attrition. Good start!
No.3 – Put bums on seats. Faster.
Empty seats cost money! They will also most likely impact on customer service, delivery and could incur reputational damage. Bottom line: it’s all bad for your bottom line.
Further research from LinkedIn confirms that investing in your Employer Brand can cut time to hire IN HALF.
In recent calculations carried out for a client, we worked out the revenue lost by having an open vacancy.
We established that halving the time to hire would reduce revenue loss by a not inconsequential £1,700 per vacancy.
We then calculated that, overall, this could add up to a reduction in revenue loss, which equals a revenue increase, of around £340k per annum.
Talk about the benefits adding up.
No.4 – Look forward to pay day.
According to the Harvard Business Review, companies without a strong employer brand overpay on salaries by 10%.
In doing the maths for the same client as above, we worked out that reducing their payroll by 10% would give them a saving of £3 million a year.
And we’re still just getting started.
Because the real measure of success should be taken over a longer term of 3-5 years.
Plus, what we can’t account for accurately is the most intangible – but potentially most invaluable – benefit of a great Employer Brand: a more cohesive, engaged workforce that is also more productive, finding efficiencies every day and over the long term.
Our Engage and Elevate courses walk you through how to do this easily with an Employer Brand Scoping Blueprint. It’s your guide to creating a business case, step-by-step. PLUS we’ll also give you a factsheet containing all of the compelling statistics essential to backing up your case.
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