In today’s world, branding is a crucial part of running a successful business.
However, different types of branding are essential to understand for businesses that aim to grow and excel in their recruitment goals. It’s important to understand the difference between consumer branding and employer branding. Consumer branding refers to the marketing and advertising efforts to sell products or services to customers, whereas employer branding focuses on creating a positive image in the minds of candidates and current employees. It’s vital to understand the difference between the two, so companies can develop distinct and effective branding strategies that appeal to their target audience.
In this blog, we’ll delve deeper into the differences between these two types of branding.
What is Employer Branding?
Employer branding is about creating a positive image of the company in the eyes of applicants and current employees to attract and retain the best talent. An employer brand aims to differentiate the company from its competition in the eyes of job seekers. Companies can begin building their employer brand by using platforms like Glassdoor, Indeed, and LinkedIn.
What is an employee value proposition?
An employee value proposition (EVP) is the value an employer offers to employees. It is focused on the company’s culture, values, and goals that appeal to potential candidates. An organization’s EVP strengthens the connection between existing employees and the company. Gartner reports that compensation, stability, location, respect, and work-life balance are the five fundamental elements of a successful EVP.
Why do you need an attractive employer brand?
In today’s competitive business landscape, having a skilled and talented workforce is crucial for success. Companies can effectively attract and retain the best employees with a strong EVP, leading to improved business outcomes and higher profits. Companies with a strong employer brand often have a strong employee engagement level and tend to outperform their competitors.
The advantages of having a strong employer brand include:
- Reduces turnover by up to 28%
- Attracts up to 50% more qualified candidates to save money and time in the hiring process
- A positive impact on customer brand loyalty
- Reduces cost per hire by up to 43%
- Increased employee engagement
- Better business results
92% of job seekers look at Indeed or Glassdoor when applying for a new job. Companies with a strategic approach willing to invest in their employer brand ultimately build a positive perception of themselves in the minds of the audience, and ultimately see greater success towards their business goals.
Employer Branding will improve your turnover
When we experienced an all-time high turnover in 2017, we evaluate our culture and reshaped our value proposition to ensure it was attractive to both current and prospective employees. Through this dedicated initiative, we were able to hire top talent that accelerates an inclusive workplace. It also helped us to:
- Increase referrals by 57%
- Reduce voluntary turnover to 10%
- Improve diversity by 11%
- Improve employee satisfaction
One of the ways we show our EVP is through our About Us page, highlighting our company culture and initiatives to DEI.
What is Consumer Branding?
Consumer branding focuses on a company’s marketing and advertising efforts to attract and retain customers.
The goal is to create a brand identity that instantly triggers recognition and loyalty in the minds of consumers. Companies take deliberate steps to create brand awareness, brand image, brand association, and brand reputation to differentiate their brand from their competitors. A successful consumer brand tends to go beyond the product and highlight an overall lifestyle that resonates with its customer base.
What are the similarities and key differences between consumer branding and employer branding?
While consumer and employer branding share similarities, they differ in targeting different audiences. Developing a strategic approach to employer branding by highlighting company culture, benefits, and values can attract top talent, increase employee engagement, and positively impact the company’s bottom line.
While the goals of consumer branding and employer branding differ, they do have similarities. Both aim to create a positive company image, engage the audience, differentiate themselves from the competition, and build brand loyalty. A strong consumer brand can also translate into a strong employer brand.
Ideally, a company with a strong consumer brand may find that potential employees have a positive perception of their company before even seeking employment. This can make recruitment easier, and when the employees have joined, they can be driven to promote the product in line with the consumer brand.
The Key Differences
The main difference between consumer and employer branding is the target audience. Consumer branding aims to appeal to potential and existing customers to build brand loyalty, while employer branding is targeted to employees and job seekers to create a positive image of the company as an employer.
Employer branding is more about highlighting the employee experience, whereas consumer branding is more focused on the features and benefits of the product or service. Additionally, while consumer branding may adopt a sense of humor or lightheartedness, employer branding tends to be more professional.
Understanding the differences between consumer branding and employer branding and developing a cohesive strategy for both can allow a company to gain a competitive edge and position itself as a leader in its industry.
If you don’t know where to start, our talent strategists are eager to help. Contact us today to get started.
About EG Workforce Solutions
We’ve been in this business for decades and have developed a deep network of professional connections. Whether they’re companies looking for talent, job seekers looking for work, or an up-and-coming store in need of some temporary help, we know the right people to bridge the gap between the hiring and the hired.
But what’s more, we get to know people. From employers hiring to candidates looking, we take the time to listen and learn. We hear your likes, talents, and needs. We gain an understanding, and with it, we’re able to facilitate lasting relationships between businesses and people.Back to Blog Page