Tariffs here, tariffs there, daily political whirlwinds, war and peace. These are not just fictional headlines, but the everyday world we live in. Not to mention a changing climate and a recent pandemic. Instability is the new norm and in fact, it has been for the last couple of years. In economic downturns and political instability, companies – understandably – often turn to cost-cutting measures, sometimes even playing safer than might be needed. Unfortunately, employer branding efforts may be among the first to face reductions in organisations of all sizes. However, in times like these, a strong employer brand becomes invaluable. A well-established reputation as a desirable employer helps attract and maybe more importantly retain top talent, ensuring long-term resilience and business success. In this article, we will show you six key reasons why investing in employer branding during challenging times is not just beneficial but absolutely essential.
6 Reasons to Invest in Employer Branding During Uncertain Times
1. Talent might be more available but skills remain scarce
In the last year or so, business leaders have felt the employee market easing up a little bit, with open unfilled positions moving back from their post-COVID historic highest points. Nonetheless, crucial skills and skilled professionals remain in high demand. In a world where new positions with new sets of skills are being created daily, no organisation can allow themselves to put their employer brand on the backburner. The most talented individuals will always have options, and they will naturally gravitate toward organisations that demonstrate – and are able to portray – stability, purpose, and commitment to their employees. Companies that continue to invest in their employer brand signal that they are forward-thinking and prepared for the future.
2. Retention is more cost-effective than recruitment
Replacing an employee is expensive. For instance, according to a G&A Partners article, turnover costs represent approximately 23.5% of a worker’s annual wage, and the average cost to replace a terminated employee is about 50% of that employee’s annual salary.
It is true that of course however unfortunate but economic challenges often lead to workforce reductions. Nonetheless, companies that neglect their employer brand risk higher voluntary turnover among their best employees. You need to take care of those that leave, but also those who stay – both are equally important in maintaining a strong employer brand. And by fostering a strong sense of loyalty and engagement, organizations can mitigate the risk of losing key talent of the future.
3. Your reputation is always under scrutiny
In the digital age, employer reputation spreads quickly through platforms like LinkedIn, Glassdoor, Reddit and other forms of social media. Employees, past and present, share their experiences online, influencing potential candidates. Glassdoor now even has ‘interview reviews’ too so your employer brand is under the microscope even with people who might not ever join your company. That is why you need to assess and then be mindful of all the potential points of engagement, that people may have with your EVP (employee value proposition).
4. Investing now pays dividends later
History has shown that companies maintaining a strong employer brand during crises emerge stronger when conditions improve. By investing in employer branding now, organizations set themselves up for a competitive advantage once the economic landscape stabilizes. And yes includes proper outplacement programs, should the unfortunate need arise – but also not cutting back on employer brand efforts on all stages of the employee life cycle. Those who cut back on branding efforts may struggle to regain lost ground when hiring rebounds. And it always does rebound.
5. Employees are your best brand ambassadors
Your current employees are the most authentic advocates of your employer brand. Encouraging them to share their experiences on professional networks, participate in company storytelling, and engage with potential hires can strengthen your brand credibility. Positive word-of-mouth is invaluable, particularly in uncertain times, and genuine candid communication with your employee workforce is your all-time best friend. Job seekers value transparency very high – Glassdoor found that “70% of active job seekers are likely to apply to a job if the employer actively manages its employer brand”.
6. A purpose-driven brand resonates with the workforce
Today’s workforce—particularly Millennials and Gen Z—prioritizes purpose-driven work. Highlighting your company’s contributions to sustainability, diversity (yes, even today), and community initiatives can enhance your brand’s appeal. Even during economic struggles, maintaining your commitment to values fosters trust and alignment with talent expectations. Notably, 75% of Gen Z individuals seek secure and stable work, with an average desired tenure of seven years, double that of previous generations. And an organisation that does care about the future, is certainly a stable one in the eyes of future generations.
Let’s create your own talent magnet together
A strong employer brand is the foundation for attracting and retaining top talent—but even the best brand needs the right strategy to connect with the right people. That’s where expertise not only with talent acquisition but also talent attraction comes in. At Meijer & Co, we don’t just help you find candidates; we help you strengthen your external image while going out to candidates and we ensure that your employer brand reaches the talent that truly fits your organisation’s culture and long-term vision. In an era where scarce skills are the real currency, our strategic headhunting approach ensures that your company doesn’t just compete for talent—it attracts and retains the best. Partnering with Meijer & Co means turning your employer branding efforts into real, lasting hiring success.
