How important is an employer’s brand when it comes to recruiting the best talent, can it suffer damage and, if so, can it be repaired?
Employer branding is how a company markets itself as a place to work, including showcasing career prospects, culture and dynamic of work, says Sinéad O’Dwyer, talent acquisition lead at PepsiCo Ireland. Essentially, for prospective employers, it “helps us differentiate ourselves from our competitors when recruiting talent”.
“An employer brand is what people think and say about us as an employer – it’s our reputation,” says O’Dwyer. “It is important to distinguish your employer brand from your company or commercial brand, as it’s your employer brand that should tell the story of what it’s like to work at your company.”
In today’s competitive job market employer brand is crucial in attracting and retaining talent, says Sinéad D’Arcy, early talent strategist and founder of Future-Roots.
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“In recent years candidates have begun to act more like consumers, which has led to an increasing trend towards a more marketing mindset in the HR function,” says D’Arcy.
“We are probably all familiar with consumer branding which is designed to build awareness, create emotional connection, positive perception and loyalty to sell a product or services. Rather than using branding to sell products or services to consumers, employer branding uses it to sell the company as a great place to work to jobseekers, current employees and future talent.”
Just like consumers, job seekers are drawn to what they feel connected to, and employer branding provides the opportunity for organisations to have a distinctive voice in the labour market that promotes their company values, culture, vision, mission and commitment to employee wellbeing, according to D’Arcy.
But it not something that is static in terms of communication, says O’Dwyer. “An employer brand needs to be tailored to different functions and/or cohorts – not a one-size-fits-all approach,” she explains. “You need to understand the demographic of your target audience, as what appeals to an experienced engineer is likely different from what a graduate accountant is looking for.
“It is also really important that your employer brand is authentic and true and that the marketed perception matches the experience once an employee has joined.”
A poor employer brand can have multiple consequences, from putting off prospective talent, leading to a drop in candidate quality and increased cost-to-hire and time-to-hire, to lower employee engagement and productivity, which can lead to low morale and high attrition.
“It can also negatively impact customer perceptions,” says D’Arcy. “Modern job seekers are savvy. In a digital age, word can travel fast and employers who share an enticing employer value proposition (EVP) must deliver on it. In a recent report by Korn Ferry, one of the top five key drivers in talent acquisition in 2025 is EVP so it is clear that employers need to invest in this and understand that if they talk the talk, they must walk the walk. If they fall short on promises made, it makes potential candidates cautious and new hires lose trust.”
Damage to employer brand can be repaired but it takes time, so prevention is better than cure, D’Arcy says. “Employers need to invest time into defining and refining their EVP to ensure a clear and robust offering that can be fully delivered is communicated to candidates and employees.
“Research shows that a strong employer brand can lead to increased job satisfaction and reduced turnover. LinkedIn found that a good employer brand can reduce turnover by up to 28 per cent.”
Every employer has a reputation in the labour market, says D’Arcy. “Employer brand is about actively managing this. To mitigate against the risk of poor employer brand perceptions, companies need to engage in proactive evaluation of their reputation.
“This can be done through building awareness of company reviews shared on platforms such as Glassdoor and conducting acceptance, decline and exit surveys can provide valuable candidate insights.”