The Impact of Internal Employer Branding on Employee Retention

Think about it: You’ve invested time and money recruiting and training your best-performing employee. They appear to be flourishing until they unexpectedly submit their resignation. Unfortunately, you’re clueless about what went wrong and how you could have averted this loss. 

Employee turnover is a problem that companies of all sizes and industries frequently encounter. The morale and efficiency of your remaining team members might also be negatively impacted by losing talented individuals. 

And this is where internal employer branding offers a solution. A solid internal employer brand helps companies recruit and retain capable employees through a positive workplace culture.

Let’s look at the role of employer branding in employee retention, what employees look for in their workplace, and the best techniques for enhancing employee retention.

What is Internal Employer Branding?

Internal employer branding refers to the strategies and efforts an organization employs to cultivate and enhance its reputation as an employer within its existing workforce. It involves creating a positive and engaging workplace culture that resonates with employees, aligns with the company’s values, and promotes a sense of belonging and pride.

Internal employer branding focuses on the employee experience, aiming to attract, retain, and motivate talent from within the organization. This process involves effective communication, employee development programs, recognition initiatives, and fostering a positive work environment. The ultimate goal is to build a strong internal brand that not only attracts top talent but also encourages current employees to become brand advocates.

Differences Between Internal vs External Employer Branding

While both internal and external employer branding aim to enhance an organization’s reputation, they focus on different audiences and aspects of the employment experience.

Internal Employer Branding

  • Targets existing employees within the organization.
  • Focuses on enhancing the employee experience, engagement, and satisfaction.
  • Uses internal communication channels, employee development programs, and recognition initiatives.
  • Aims to retain talent, improve employee morale, and cultivate a positive workplace culture.

External Employer Branding

  • Targets external audiences, including potential candidates, clients, and the general public.
  • Emphasizes the company’s values, mission, and overall reputation in the industry.
  • Uses channels such as social media, job boards, and marketing campaigns to reach a broader audience.
  • Aims to attract and recruit top talent by showcasing the company’s strengths and unique selling points.

Why Does Employer Branding Matter?

Employer branding can assist you in attracting and retaining top personnel, reducing turnover, and saving money on recruiting and marketing. In addition, treating people like people is what every employee wants. They desire to belong somewhere, not just finish their work.

Top organizations such as Google, Salesforce, Blackrock, and others are merciless in attraction and retention strategies for talent. They recognize that the quality of their employees determines whether the battle is won or lost. Employer branding can help businesses get a strategic advantage in the employment market.

It’s the number one area in which they’d like to invest in hiring costs. Businesses with great employer brands only need to spend half as much as others. A good employer brand means 28% less turnover when it takes the company six to nine months to replace an employee; this adds up, especially for higher-paying jobs in high-demand industries. 

Look at Sarang Brahme’s tweet sharing insights on how branding starts internally. 

Establishing a solid internal employer brand doesn’t happen overnight. It involves all functions and levels of your business, from the marketing department to the CEO, but what are the benefits of internal branding and employee engagement? 

1. Helps retain and recruit

A solid brand reputation and a good company culture are essential for attracting new talent. Also, showing a genuine interest in your people can help retain employees and create a positive work environment. 

2. Reduces costs

If you strengthen the employer brand, you can save money on salaries and advertising when promoting those difficult-to-fill positions. Yet, you must still pay well. Moreover, a company must have a positive reputation in the market to find exceptional talent.

3. Recognizes employees

Every company should strive to be the first company potential employees think of when looking for a new job. An effective internal employer brand capitalizes on that distinction and raises brand recognition. In addition, jobseekers search the Internet for information about your corporate culture.

What Do Employees Want in the Workplace? 

A job seeker considers more than just compensation when seeking a job. In practice, many factors can influence whether they join a particular company. Employers have a greater chance to find and keep the best personnel for their company when they identify their priorities and match them with their goals.

1. Job security

Job security is the first thing every employee wants. But unfortunately, due to the recent mass layoffs, many employees experienced depression. So, before accepting any job offer, they’d likely want to know if they have a future with the company and aren’t at risk of being laid off at a moment’s notice. 

2. Work-life balance

For employee well-being and job happiness, it’s critical to strike a good work-life balance. Companies that provide flexible work hours, remote alternatives, and days off for family or personal commitments are more enticing to employees. By promoting vacations, establishing reasonable deadlines, and providing wellness programs, employers can encourage employees to maintain a healthy work-life balance.

3. Perks and wellness offerings

Many workers look for benefits that go beyond a wage. For example, businesses that provide gym memberships, healthy snacks, and other well-being benefits can attract and retain top talent. These benefits can encourage a healthy lifestyle and increase employee morale and output.

Here’s what Abhimanyu Gargesh says about employee engagement. He believes weekly team lunches, quarterly retreats, and other employee perks are essential for fostering engagement and building a positive workplace culture.

4. Training and development

Employees want to feel valued at work. As a result, employees can progress in their careers and gain new skills through training and development activities. In addition, employees who feel involved in their futures with the organization tend to have higher work satisfaction and fewer turnovers.

How to Retain Employees

Retaining employees has become crucial for any successful organization in today’s cutthroat labor market. Employee retention helps a business save money while enhancing its employer brand and fostering a positive work environment. 

1. Create an engaging onboarding process

A smooth onboarding process may leave a lasting impact on new workers. To help new workers adjust to the workplace, provide a thorough and engaging onboarding procedure. In addition, clear training manuals, guidance, and support can help new employees quickly get up to speed and feel more connected to the business. 

Zappos is a company known for its unique onboarding process. They do things differently when hiring new people, but the approach has proven effective. Zappos is highly committed to finding the right fit for its company culture. They offer new hires $4000 to quit if they feel they made a wrong decision in accepting the job offer.

2. Increase salary and benefits

Offering employees decent salaries and perks is among the best methods to keep them on board. It can improve morale, encourage loyalty, and lower turnover rates. In addition, providing advantages like flexible work schedules or opportunities for professional growth can help keep talented employees.

Archana K., marketing manager at Concentrix, says that discussing wages with co-workers in the same position is healthy. By knowing industry standards and feeling fairly compensated, employees are more likely to feel empowered and motivated to contribute their best and less likely to seek new opportunities.

3. Develop an internal branding plan

An effective internal branding strategy can enhance corporate culture and encourage employee involvement. Employees are more likely to stick with a firm over the long term if employers prioritize internal branding because it gives them a sense of purpose and belonging. It can involve fostering a pleasant workplace culture, continuous feedback, and employee recognition programs.

Example of Internal Employer Branding in Action

Tech Solutions, a leading innovator in the tech industry, recognized the need to strengthen its internal employer brand to maintain its competitive edge and attract and retain top talent. The company had a history of groundbreaking products but wanted to ensure that its workplace culture and opportunities were equally the same.

Action Plan

1. Employee Development Program: Recognizing the importance of continuous learning, Tech implemented a robust employee development program.

Actions:

  • Skill Enhancement Workshops: Regular workshops on cutting-edge technologies were conducted to keep employees updated.
  • Career Advancement Tracks: Defined career paths and provided clear growth trajectories within the organization.
  • Mentorship Programs: Established mentorship initiatives to foster professional relationships and knowledge transfer.

2. Internal Communication Overhaul: Acknowledging the need for transparent and effective communication channels within the organization.

Actions:

  • Regular Town Hall Meetings: Monthly town hall meetings were introduced, where leadership communicated company updates and addressed employee queries.
  • Feedback Mechanisms: Implemented regular surveys and suggestion boxes to gather employee feedback and suggestions.
  • Inclusive Communication: Ensured that important information was shared inclusively across all departments and levels.

3. Recognition Initiatives: Understanding the impact of recognition on employee morale and motivation.

Actions:

  • Employee of the Month Programs: Introduced a recognition program highlighting outstanding employees and their contributions.
  • Performance Bonuses: Linked recognition to performance bonuses to tangibly appreciate and reward exceptional work.
  • Peer Recognition Platforms: Launched platforms where employees could recognize and appreciate their peers for their achievements.

4. Positive Workplace Culture: Creating a workplace culture that fosters collaboration, innovation, and inclusivity.

Actions:

  • Team-building Activities: Regular team-building events and activities, both virtual and in-person, to strengthen interpersonal relationships.
  • Diversity and Inclusion Initiatives: Implemented policies and programs to promote diversity and inclusion, ensuring a workplace that values differences.
  • Wellness Programs: Introduced wellness programs, including mental health support, fitness challenges, and flexible working options.

Results

After implementing these initiatives over the course of a year, Tech Solutions witnessed a notable transformation in its internal employer brand. Employee satisfaction surveys showed a significant increase, and turnover rates decreased. The positive workplace culture contributed to heightened innovation, as employees felt empowered and motivated to contribute their best work.

Retain Employees With Internal Employer Branding

Employee retention is a continuous process involving understanding employees’ interests. Businesses should establish a work atmosphere wherein employees are motivated, engaged, and committed to achieving the company’s objectives. All of this is attainable by prioritizing internal employer branding.

About the Author

A multi-faceted writer with a passion for storytelling, Saloni Ordia is a freelance writer for B2B SaaS brands in HR, marketing, and customer service. When not on keyboard you can find her nose buried in a rom-com and marketing books. Connect with her on LinkedIn