The Value of Employer Branding During a Recession - Glassdoor for Employers
The Value of Employer Branding During a Recession

The Value of Employer Branding During a Recession

Recessions are often a time of significant changes and quick decisions that can end up having a serious impact on a company's employer brand. After all, who's thinking about employer branding when you're facing hiring freezes, layoffs, and the fallout of significant reorganization efforts?

However, we want to make the case that employer branding is even more critical during times of uncertainty. What happens - or doesn't happen - during a recession will have repercussions long after the downturn ends. Companies that want to see results need to be consistent about their efforts, even through the highs and lows of the economic environment. 

Related: The ROI of Employer Branding.

Here are three key ways your employer brand provides value during a recession:

#1. A strong employer brand reinforces your values to maintain company culture  

Shared values are directly linked to employee engagement and retention, with companies that actively invest in their employer brand seeing as much as a 28% reduction in turnover. During a recession, continuing employer branding efforts that highlight your company values reminds current employees about what initially attracted them to your organization. Through all the ups and downs, this fosters a sense of trust and community and brings people together around a common goal.

#2. A strong employer brand protects the company during times of change

Transparent and frequent communication is a vital component of a strong employer brand. This is especially true if promises made during hiring cannot be fulfilled, such as a position on a team that has suddenly been eliminated. After all, at some point every company will be faced with the fiscal challenges of a recession, and the way in which decisions are communicated have a direct effect on how people's perception of the company. 

Approaching tough decisions and conversations with a message of "we'll get through this together," communicating in a transparent, honest, and equitable manner, and providing extra support for those facing layoffs, furloughs, and restructuring, companies can limit the impact these difficult choices have on their employer brand. Employers can also protect their brand during times of change by conducting internal surveys to monitor engagement and identify and address potential issues. Seeking input from employees and making the effort to understand their concerns is an effective way to maintain connections and keep them engaged.

#3. A strong employer brand grows and refines your talent pipeline 

No matter how devastating they are, recessions are temporary. Whether a recession limited your growth as you maintained your workforce or reduced the size of your company in workforce reductions, eventually you will need to hire again. Investments in employer brand today, through the recession, can help you make sure you're building a large talent pool you can rely on in the future and attract the 92% of candidates surveyed who indicated they would consider changing jobs if offered a role with a company with an excellent reputation.

Related: 5 Recession-Proof Hiring Strategies to Put In Place Now.

During a recession, it may seem counterintuitive to invest energy and resources in your employer brand. But it is during times of change that companies can reap the most benefit from that brand and lay a firm foundation for the future. A strong employer brand can help see your company through this challenging time and set you up for success during recovery.