Employer Branding Benefits: Lowering Costs, Boosting Retention, Enhancing Performance

A strong employer brand helps you reduce By focusing on building a strong employer brand, you can attract the right talent, improve employee engagement, and create a workplace where people want to stay and grow. In the following, we’ll show you 8 key ways to strengthen your employer brand and reap the benefits of reduced hiring costs, higher retention, and improved company performance.

1. Reduce Recruitment Costs by Attracting the Right Talent

A strong employer brand can cut recruitment costs by up to 50%, attracting candidates organically instead of requiring expensive ads or third-party recruiters. With candidates increasingly seeking secure, long-term opportunities, top employers stand out by building a brand that resonates with these values.

“With current market uncertainty, more candidates are looking for job security and stability. A well-established employer brand meets this need and brings in candidates who stay longer,” explains Dorota Morel, Head of Research at Universum. “Our 2024 research shows ‘secure employment’ has risen to the top three career preferences for business and IT students and ranks fifth for engineering students.”

Quick Tip: Optimize your career site and online presence to showcase stability and security. When candidates feel aligned with your brand’s values, they’re more likely to apply—saving you costly recruitment expenses.

2. Faster Hiring Times with a Strong Brand Presence

A respected brand speeds up hiring by attracting engaged candidates. Research shows companies with strong brands fill positions up to 1-2 weeks faster, giving hiring teams a competitive advantage in markets where top candidates are quickly recruited.

“In today’s competitive landscape, reducing hiring time even by a week can have a huge impact on productivity,” says Claes Peyron, Head of Business Development at Universum. “Job seekers are looking for reliable employers, and a strong brand speeds up their decision-making.”

Candidates who resonate with your brand are more likely to accept offers promptly, leading to fewer delays and a faster onboarding process.

Pro Tip: Clearly define your values in job postings and on your careers page. When candidates identify with your company’s purpose, they’re quicker to join your team.

3. Higher Retention Rates and Cost Savings

A strong employer brand drives retention, with companies experiencing up to 28% less turnover. Lower turnover saves significant costs—replacing an employee can cost 50% of their salary—and builds stability within teams. This year’s research highlights that young talent seeks job security more than ever.

“When employees connect with a brand’s mission, they stay longer,” Morel notes. “Our 2024 survey shows ‘high future earnings’ consistently ranks as a top preference, emphasizing that young talent wants secure, growth-oriented paths.”

Retention Strategy: Communicate a clear career path, provide professional growth opportunities, and recognize employees’ contributions. When people feel valued, they’re more likely to stay.

4. Increased Engagement and Productivity

An engaged workforce performs better, and a strong brand fosters engagement. According to Gallup, engaged teams are 21% more productive. Employees who align with your brand’s mission are more motivated, collaborative, and dedicated to their roles.

“Our research indicates that young talent is drawn to stability and growth potential over highly challenging work,” explains Peyron. “Companies that balance performance demands with flexibility and security gain an engaged workforce.”

Creating an environment where employees feel connected to the brand’s mission increases productivity and drives innovation.

Quick Win: Foster a culture of recognition and respect to keep employees motivated. An engaged workforce is a more productive one.

5. Improve Quality of Hires

A strong employer brand draws candidates who are aligned with your company’s values and purpose. Universum’s survey found that 75% of young professionals consider a company’s reputation before applying. Candidates who believe in your mission are more likely to be high performers who stay long-term.

“Our data show that employer branding isn’t just about attracting talent but attracting the right talent,” says Morel. “High-quality candidates look for companies with strong values and clear missions.”

With a solid brand, hiring teams can focus on quality candidates, which saves time on screening and results in a more cohesive team.

Quality Focus: Highlight your values and mission in all recruitment materials. Candidates who connect with your brand bring high performance and commitment.

6. Increase Employee Advocacy and Referrals

Employees proud of their workplace are natural brand ambassadors, bringing in valuable referrals. Referred employees tend to stay 45% longer and perform better from day one. Universum’s research shows that employees who trust their employer’s brand are far more likely to recommend it to peers.

“Employees are your best advocates,” Peyron emphasizes. “If they feel secure and valued, they’ll refer friends, creating a stronger team fit.”

Encourage Advocacy: Recognize employees’ contributions and encourage them to share their experiences. This strengthens your brand and brings in talent already aligned with your values.

7. Improve Customer Perception and Trust

Employer branding doesn’t just benefit recruitment; it influences customer loyalty. A positive workplace culture builds public trust, which leads to stronger customer relationships. Universum’s research shows that customers support brands that treat their employees well, adding another level of brand credibility

Dual Benefit: A respected employer brand attracts talent and resonates with customers who value ethical, employee-centered companies.

8. Quantifiable ROI: A Strategic Investment with Long-Term Gains

Employer branding isn’t just about improving perception—it delivers real, measurable ROI. Companies with strong employer brands often see up to 2.5x higher revenue growth due to lower turnover, faster hiring, and a motivated workforce.

“Investing in employer branding has measurable returns,” says Morel. “Our research shows that companies with strong brands see lower recruitment costs, stronger engagement, and higher productivity—key drivers of financial success.”

The long-term impact of a strong employer brand builds value across recruitment, retention, engagement, and reputation, making it one of the most valuable strategic investments in HR.

Why You Should Invest in Employer Branding?

Now that we’ve gone through the key benefits of employer branding, we can recap the reasons why it’s well worth the investment in time and resources:

• Up to 50% cost reduction in recruitment through organic candidate attraction: Strong branding attracts candidates organically, reducing dependency on paid recruitment efforts.

• Faster Hiring Times (up to 2 weeks faster): A strong brand presence speeds up decision-making, securing top talent quickly.

• Higher Employee Retention (up to 28% less turnover): Branding that resonates with employee values leads to longer tenures and cost savings.

• Enhance Engagement and Productivity: Employees connected to your mission perform better, resulting in a 21% productivity boost.

• Improve Quality of Hires: Candidates attracted to your brand’s values bring commitment and high performance.

• Increase Employee Advocacy: Proud employees become advocates, generating valuable referrals for your company.

• Positive Impact on Customer Perception: Customers support brands known for ethical, employee-centered workplaces.