Why is employer branding so important for recruitment agencies?

At the heart of every successful recruitment agency, you'll find a team of dedicated and driven individuals, working towards a common goal.

And it won’t be luck or chance that brought them together.

It’s a competitive market out there and agencies face a constant battle to grab themselves the top talent (and of course, the best clients and candidates), as they pursue their growth ambitions.

But what's the secret to ensuring your agency is attracting and retaining great people?

The answer is employer branding.

Employer branding explained

When you hear the phrase ‘employer branding’, what do you think of?

• An edgy website?
• Perhaps a funky company video on TikTok?
• Or even pool tables and a token dog in the office?

While gimmicks and marketing tactics are all well and good, unless these things are part of something much bigger that has real depth, then their impact will be short lived.

Employer branding is about defining what you’re all about as an agency and positioning yourself within the market.

There's no faking it when it comes to employer branding either, as it needs to be an authentic reflection of the very essence of your agency; that means a reflection of your values and the culture of the organisation.

It is something that in turn needs to be reflected in every touchpoint someone may have with your organisation – i.e.. every communication or interaction that takes place. Whether that’s a call coming into the office, a social media post, an interview, or a leavers’ questionnaire.

Your employer branding should accurately express what someone might expect if they work for you. And when someone joins, their lived experience needs to match up to the image the agency has portrayed. There’s no space for catfishing here, as you’ll soon be found out and the damage to your reputation will be done.

Your ‘Employer Value Proposition’ (EVP) should sit at the core of your employer branding. In simple terms, this is what defines how you’d like to be seen and experienced by employees and candidates. When thinking about your EVP, consider what your target talents’ career aspirations may be.

Make sure you know what you stand for, that you’re credible, relevant for today’s top talent and also an aspirational place where recruiters can see a future.

Benefits of strong employer branding

Helps you attract great people

A strong, differentiated and prominent employer brand will help you attract and retain top tier talent. If a recruiter already has a positive impression of your agency and what you’re all about, then they’re more likely to see it as a good place to work and to want to join the team, seeing it as good fit for them.

Research by LinkedIn found that employer branding is even more important when you’re targeting a younger demographic too – ‘potential candidates under 40 years old are 61 percent more likely to have their job consideration levels associated with employer brand’.

Helps you retain talent

Recruiter churn can be a big problem in some agencies. The lower your staff turnover rate, the less time and energy you’ll need to spend finding and training up talent. That frees you to focus on other things, like business growth. Plus, it benefits your candidate and client relationships too, as they won’t always be starting again with another new face.

Companies with a stronger employer brand have a 28% lower turnover rate than companies with a weaker employer brand.

Helps you reduced your cost per hire

If your company is positioned right and has a clearly defined employer brand that’s backed by an equally strong reputation, then you’re in a great position for growth. You are also more likely to benefit from organic growth, such as through word of mouth, with recruiters, candidates (and clients) liking what they hear and starting to come to you. That means you’re spending less time and money having to proactively go out there, or to convince recruiters to join you, rather than a competitor.

Companies with a weaker employer brand report a cost per hire that is almost double that of companies with a strong employer brand.

Helps you attract and retain great clients too!

If you’re attracting and retaining top tier talent then that will benefit your customers too, who will receive a first class service. And happy customers, means a positive bottom line!

If a potential client hears great things about you and likes what they see, then they are more likely to listen to what you have to say. If the experience of working with you is then as good as they were expecting, you may even achieve the holy grail that every recruitment agency is looking for - reaching a point where a client gives you repeat business and even exclusivity.

How important is employer branding for start-up agencies?

But what if you’re just starting out? Is employer branding really that important when you have a million other things to be thinking about? And will you ever be able to complete with large, established agencies?

It’s true that bigger, more prominent brand names may have an easier time attracting top talent, simply because they are already well known. But being a start-up agency can also have loads of advantages and getting your employer branding right is an important step for sharing those benefits and telling your ‘story’.

The bigger the company, the more corporate its operations are likely to be and the more layers of management and procedure that may be in place. Indeed, one of the reasons people leave a corporate background is because they are fed up of red tape and don’t feel they are being heard, or can effect positive change.

Because start-up recruitment companies are not operating under the weight of this, they can be much more flexible and nimble - better able to make decisions quickly and to do things their own way. They also have a buzz and energy about them that bigger brands simply don’t have.

The old saying ‘people buy from people’ is as strong today as it ever was and if you’re a company dealing with a small agency, you’re more likely to form relationships with the founders and individuals who are incredibly passionate about doing a great job, because it really matters to them.

While for recruiters, joining a growing agency can offer unique opportunities to make their mark and progress up the ranks rapidly, while having a chance to input on how the company operates.

Examples of agencies who are doing it really well

Here at 3R, we’re lucky to work with many ambitious and outstanding recruitment agencies, who show how it should be done, when it comes to strong employer branding. Take a look at:

Copello - ‘A people-focused recruitment business, driving exceptional performance through a brilliant culture’.

Talent Locker – ‘Recruiters that make a real impact’

Mexa Solutions - 'All our consultants have slightly different methods of carrying out their roles, suiting the niche markets they work in. We give our consultants the freedom and autonomy to do so, however ultimately we all share the same values and drive to be the best at what we do.'