Despite today’s low unemployment rates, less than half of organizations say their employer brands are good at attracting quality candidates or retaining and engaging current employees.

So, how can more organizations improve their brands in 2024?
 

In HR.com’s “State of Employer Branding and Recruitment Advertising 2024” research report, we highlight the practices that are linked to better employer brands and discuss the kinds of job advertising techniques most highly associated with the ability to recruit great employees.

Here are the main findings from the research:

How Successful Are Today’s Employer Brands?

Finding: A majority feel their employer’s brand is either good or excellent at reflecting the organization’s value and mission

What is the primary benefit of employer branding? It turns out to be the ability to reflect the organization’s value and mission, with 61% of respondents rating it as above average or excellent in this regard. And, 87% rate it as at least average.

The news is more mixed in other areas. A little less than half (48%) give high ratings to the support and amplification of the overall external company brand, and 47% say the same about engaging and retaining employees.

The news is worst in the area of diversity, equity, inclusion and belonging (DEIB), where just 36% say the employer brand is above average or excellent at increasing it.

Finding: Well-branded organizations are much more likely to have better brand outcomes

Organizations with a successful employer brand see benefits across the board. Well-branded organizations are over four times more likely to say their employer brand is excellent or above average at engaging and retaining employees. Similarly, they are four times more likely to say their employer brand increases diversity, equity inclusion and belonging to such an extent.

Further, they are over three times more likely to say their employer brand is above average or excellent at impacting the corporate bottom line.

Finding: Lack of financial resources and personnel are the most widely cited barriers to effective employer brand development

Despite the various advantages associated with having a good employer brand, a large portion (45%) of respondents cite financial constraints as a primary barrier to effective employer brand development. These organizations may need to make a better case for developing a strong employer brand, one that highlights the potential return on such investments.

Nearly as many (44%) organizations report a lack of personnel dedicated to employer branding efforts. This is a similar problem in that it indicates a lack of dedicated resources and prioritization.

Without designated individuals or teams, employer branding tasks may fall between the cracks or be inadequately addressed by staff whose primary responsibilities lie elsewhere.

The lack of time, cited by 34% of respondents, could reflect a lack of prioritization, though there may be other factors as well, such as insufficient staffing or just poor time management, which leaves little room for additional initiatives like employer branding.

Are Organizations Investing in their Employer Brands?

Finding: Only about two-thirds of today’s companies are dedicating resources to actively cultivate their employer brand

The commitment to employer branding appears to be a strategic consideration for many organizations. Nearly half (48%) of respondents say their organizations dedicate resources to an employer brand that is a well-known brand within their industry. Another 20% make such investments, but their employer brand is not yet well known within their industry.

That’s the good news. A majority of organizations are actively investing in their employer brands.

The bad news is that this still leaves about a third of organizations not doing this at all, even though many of them are “considering doing so.”

This does not mean that these organizations lack employer brands. In fact, we believe that virtually all organizations have a brand even if they haven't intentionally cultivated and invested in it.
 
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