The Importance of Employer Branding

The Importance of Employer Branding

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The term ‘employer branding’ has been gaining significance in HR circles in recent years. In the age of social media and employee feedback platforms, most if not all job candidates search online to get the scoop on companies before deciding whether to work for them. Studies show that 75% of candidates identify a company’s reputation as a key consideration when exploring new career opportunities.1 To strengthen their employer brand, companies have also been investing considerable resources in their Marketing and Communications functions with involvement from some prominent brand ambassadors.

So what is Employer Branding and why is it important?

Companies regularly focus on their consumer brand to enhance how their products and services are perceived by customers with the goal of increasing their reputation and sales. There is a growing recognition that the same level of attention is needed to build a strong employer brand to compete effectively in a competitive job market.

Simply put, the employer brand is a company’s reputation as an employer. It is a key component of the Employer Value Proposition (EVP) for jobseekers and employees in exchange for their experience, talent, and skills. Positive employer branding helps to attract and retain quality employees, who are crucial to the success and growth of the business.

What advantages are there for a company with a strong Employer Brand?

1. Employee Engagement and Retention.

A strong employer brand makes employees proud to be part of the organization. They align and resonate with the company’s values and are eager to contribute to the success of the business. The collective pride drives performance and productivity, from senior leaders to new hires, resulting in a more stable and motivated workforce.

In the recently published 2020 Singapore Best Workplaces™ Insights Report, the statements ‘I want to work here for a long time’ and ‘People look forward to coming to work here’ both garnered an average of 86% in Singapore Best Workplaces, 12 points higher than the average of 74% from Singapore Rest.2

2. Attracting Qualified Job Candidates

Today, job seekers can simply key in ‘great place to work’, ‘best companies to work for’ or ‘top companies to work for’ on search engines to identify those companies with the best reputations. Most everything a job candidate needs to know can be found online and shared on social media. In fact, 86% of workers would not apply for, or continue to work for, a company that has a bad reputation with former employees or the general public.3

Having a strong employer brand gives an organization a strong advantage in the competitive recruitment market. Companies with strong employer brands receive 50% more qualified job applicants1 giving the company the best choices while spending less time and effort in filling open positions.

3. Strong Brand Ambassadors

Your employees have the potential to be your best brand champions. At great workplaces, employees have consistently positive workplace experiences across roles and levels.

Recent data on 2020 Singapore Best Workplaces™ show that the statement ‘I would strongly endorse my company to friends and family as a great place to work,’ garnered an average of 86% from the top 10 Best Workplaces as compared with an average of 74% from Singapore Rest. Their positive experiences translate to good feedback in surveys that help build your employer brand. Happy employees also openly promote their company on social media, brag about their workplace culture with peers, and go the extra mile for their customers. This makes the company stronger without having to spend more on marketing because awareness increases through word of mouth – from your most important evangelists – your employees.

4. Financial Gains & Returns

The benefits of a strong employer brand translate into financial savings through improved recruiting and employee retention including:

  • 50% lower cost per hire at companies with strong employer brands1
  • Best Companies have half the average turnover compared with other companies in their industries1

As the global authority in workplace culture, Great Place to Work® has journeyed with many companies for more than 30 years to create a great workplace experience. With our culture-management tool Emprising™, we capture the voices of employees on a digital platform and quantify data that help you determine what makes your company great, differentiate and stand out among a sea of employers.  

Ready to build a strong employer brand?

Xyris Tapia

Xyris loves to look at life through a broader lens. She is a certified bookworm, occasional writer, intrepid traveler and design enthusiast. She likes to create and breathe vibrancy to things. When not organizing events, she is a content contributor for GPTW PH and likewise handles corporate matters. A happy wife and a doting mom, she finds joy in unique experiences and believes that everyone has the potential for greatness.

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To be eligible for the World’s Best Workplaces list, a company must apply and be named to a minimum of 5 national Best Workplaces lists within our current 58 countries, have 5,000 employees or more worldwide, and at least 40% of the company’s workforce (or 5,000 employees) must be based outside of the home country. Extra points are given based on the number of countries where a company surveys employees with the Great Place to Work Trust Index©, and the percentage of a company’s workforce represented by all Great Place to Work surveys globally. Candidates for the 2017 Worlds Best Workplaces list will have appeared on national workplaces lists published in September 2016 through August 2017.