Why Your Employer Brand Matters More Than Ever

For busy HR professionals, it can feel like the tasks and to-do’s are seemingly never-ending each week, month, and quarter. From open enrollment planning to establishing hiring and retention strategies, there’s never a shortage of work to be done. 

However, there’s one task that HR execs can’t let fall by the wayside. It’s one that requires constant refinement, and it’s become more crucial than ever to pay attention to: employer brand.

Why does employer branding matter more than ever? Even in a climate shaped by AI adoption, layoffs, fewer job openings, and “job hugging”, a strong employer brand can drive stability, productivity, and more. Let’s take a look at what an employer brand is, and why now is the time to strengthen yours.

What Is Employer Brand?

An employer brand is the perception or reputation of your company. It’s the sentiment current and potential employees have about your business, including its culture, values, and mission. It stretches beyond your existing workforce to potential job seekers, customers, and the general public. 

A strong employer brand not only has the power to impact recruiting and retention, but also ensure your future business success. 

Why Does Employer Brand Matter Right Now?

According to a recent Glassdoor survey, 92% of employees would consider changing jobs without any increase in salary if it meant working for a company that had an excellent reputation. Employer brand has always mattered, but it’s especially crucial to invest in right now.

Here’s are five reasons why:

1. A Sign of Stability

During times of economic uncertainty, layoffs, or the advent of new technology like AI, workers grow cautious. People start to cling to their current jobs, while simultaneously becoming less productive. (A report from PWC found that financial stress has caused 1 in 3 workers to become less productive.)

Right now, workers are fearful. They crave trust, stability, and transparency from a company. Luckily, your employer brand can help deliver that, acting as the cultural glue that helps reduce disengagement and boosts morale. A strong employer brand can instill trust in your current workers, helping communicate that your company can weather the current storm. 

Key action item:

‍Employer brand isn’t just about attracting new candidates, but about reassuring current employees. Recirculate your company values, prioritize events or outings that demonstrate your company culture, and go out of your way to show current employees that you’re a strong team who are all in this together. 

2. Bolsters Retention

Despite economic uncertainty and a decline in job openings in some sectors, the competition for highly skilled and specialized talent remains fierce in others. A strong employer brand is a critical factor in certain high-turnover industries such as healthcare, hospitality, and logistics—where the demand for talent is ongoing and the cost of employee turnover is significant. (SHRM reports that the total cost associated with replacing one individual can range from 90 to 200 percent of the employee’s annual salary!)

When employees feel like they work for a company whose culture, mission, and values make a positive impact on their life and society at large, they’re more likely to take pride in their work. This pride can translate to a feeling of loyalty, which can ultimately lead to higher retention. In fact, according to a LinkedIn Global Trends Report, companies with strong employer brands can cut turnover rates by as much as 28%.
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That higher retention isn’t just good for your business, but it’s good for your customers or patients as well, as improved retention often improves the customer or guest experience. This is well-documented in the healthcare sector. There have been numerous studies over the years that highlight the correlation between healthcare staff retention and patient outcomes. One of many is the recent research on annual turnover rates for full-time nurses which found that higher retention is associated with fewer patient falls and lower costs.

Key action item:

‍Make sure that you continuously promote the key pillars of your employer brand to your internal team. Solicit their feedback on how they view your company’s culture, mission, and values to determine overall employee sentiment. 

3. Future-Proofs Your Talent Pipeline

Even during slow hiring periods, a strong employer brand keeps you front of mind for candidates when the market picks up. Your reputation today shapes the talent you attract tomorrow.

Organizations that neglect their brand or go quiet during downturns often face setbacks later. In contrast, those that continue to invest in their brand come out ahead when conditions improve—and are more poised to attract the next generation of workers. 

Speaking of the next gen, when it comes to recruiting Gen Z, you’ve likely already heard that they have a new set of expectations for where they want to work. 

While previous generations may have prioritized job security, the focus for Gen Z workers tends to be on companies that are seen as supportive, flexible, and offer work-life balance. And since Gen Z is projected to comprise a third of the global workforce by 2030, they’re not a segment whose values you can afford to neglect.  

Key action item:

‍Recruiting the next generation of workers will mean building a company culture that lives up to the promise of support, flexibility, and balance. Make sure you’re providing a variety of employee perks, tools, and benefits that promote these values, whether it’s faster access to earnings, mental health resources, or a more flexible PTO policy.  

4. Offers a Human Counterpoint to AI

As AI continues to reshape the workplace, many employees are feeling uncertain about their roles, futures, and value in an increasingly automated world. In fact, a majority of today’s workforce is anxious about it. An Ernst & Young survey found that 71% of U.S. workers had concerns about AI, with 65% fearful it would replace their jobs. 

While embracing AI tools will continue to be important, a strong employer brand offers a reassuring, human counterpoint to these concerns. It communicates not just what a company does, but what it stands for on a human level—its values, culture, and commitment to people. Plus, when organizations clearly articulate how they plan to integrate AI responsibly, support employee growth, and prioritize human contribution, they build trust and loyalty in an era of rapid technological change.

Key action item:

‍Outline exactly how you will plan to use tools like AI at your company so that workers aren’t left with uncertainty or concerns about being replaced. Offer AI-focused workshops to help people understand how to utilize new technology to their benefit. Above all, remind people that the human element of your company is what makes it succeed, continuing to clearly communicate your values, culture, and mission. 

5. Helps Drive Business Results

Did you know that consumers are four to six times more likely to purchase from purpose-driven companies?  Or that a recent survey from Charter showed companies with a clearly communicated company mission outperformed their peers financially?  

There is no one universal “purpose” or mission to any company—it has to be unique to the greater impact your business has on society. However the stat above highlights one very real fact: communicating your mission and purpose to the general public is a crucial component to your employer brand—and boosting business success. 

Key action item:

‍Make sure that key elements of your employer brand—including your company mission and purpose—are clearly and consistently communicated through your marketing materials, on social media, in the press, and beyond.  

Investing In the People Who Power Your Business…Is Just Good Business

It’s clear to see that investing in a strong employer brand isn’t just something you can put on the back burner. Evaluating what your company stands for and how you can make a positive impact in the lives of your workers is a crucial, continuous task that should be on the top of your to-do list. 

In order to recruit the next generation of workers, retain existing employees, and ensure business growth in today’s job market, your employer brand needs to be top of mind. Having competitive offerings and focusing on employee well-being can help you strengthen that brand in order to build a more successful future. 

Learn more about the free tools Branch can offer your workforce—like fast, flexible payments—at no cost to your business.