It is being predicted that this year, the global demand for skilled workers will surpass the supply and there will be a talent deficit of about 85.2 million employees across global economies. The ongoing COVID-19 outbreak will put companies and their employer branding to the test. With the rise of social media, combined with the necessity for many employees to work from home amid the outbreak, the consequences of poor employer branding will hit hard.
The global skill scarcity that is being predicted could result in US$8.452 trillion in unrealised annual return by 2030. On the other hand, though, India is expected to be the only nation with skilled worker surplus of nearly 245.3 million employees over the next decade, courtesy its massive supply of working age thanks to its already massive population.
However, even with a large population as a buffer, India is still in peril of losing its talent due to an alarming attrition rate. According to a Mercer’s survey cited in Forbes, 54 percent of Indian employees are seriously considering leaving or changing their respective workplace. The figure spikes to nearly 66 percent in the young worker group between the 16-24-year age bracket.
Attrition is not a problem that just Indian companies faced. It is an issue for all companies in today’s business ecosystem. Research suggests that a variety of factors can result in high attrition; including bad organisational reputation. Having bad organisational reputation can be devastating as employees refuse to continue their association with, or even refuse to consider applying to an organisation. A few other factors influencing attrition rates also include office politics, lack of satisfaction with job roles, lack of focus or organisational culture, and negative representation on social media.
Taking all these things into consideration, the consistent truth is that a reputation of a company drastically impacts both recruiting and retention. Businesses should be encouraged to put emphasis on building a positive employer brand to mitigate early attrition. A study by LinkedIn reveals that 72 percent of recruiting leaders worldwide affirm that the employer brand dominantly impacts hiring.
So the question to ask now is: how can a business hire and retain talent to build the future?
Employee First Culture
Cultivating an empathetic, engaging, and flexible work culture is the perfect first step for any company seeking to retain and attract talent. Businesses that are transparent with a comfortable work environment will find their employees feeling valued and integral to the business’ success. This makes the workplace desirable. Having good work flexibility, frequent team interaction, and plenty of opportunities for skill development, will eventually lead to higher employee engagement.
Building a Positive Brand Across PESO Media
In this day and age, internet is king. It also so happens to be the most effective platform for PESO media. PESO media stands for Paid, Earned, Shared, and Owned media and covers all aspects of branding. Implementing blogs to engage partners, customers and job seekers can be a great reflection of a brand’s perspective. By being active on social media with relevant posts, you can attract job seekers and potential customers to explore the brand website. 68 percent of HR leaders confirmed that social professional networks such as LinkedIn is an effective tool to spread employer brand awareness.
On-boarding and Setting the Right Expectations
When bringing in new talent, a business must prepare an effective strategy to define long-term requirements. Communication is key with regards to a brands needs and vision. Business objectives, deadlines, work pressure, and work tenure should all be communicated clearly and early in order to avoid any anger or reputational harm. This helps in finding the most suitable talent for the business. Gartner suggests that if an organisation gets it right, it can reduce employee turnover by just under 70 percent and enhance new hire commitment by 30 percent.
There is an abundance of evidence that a fantastic employer brand makes the recruitment process easier and successful. It plays an indispensable role in driving the business’ bottom line in many ways. Or some organisation, this can translate to millions of dollars in savings and decreased timelines for recruitment. It matters not the size and industry of a company, impactful employer branding will result in reduction in turnover, more qualified talent, and a reduction in cost-per-hire.