Employer branding in the SME sector
A guide for the digital age
The skills shortage is affecting small and medium-sized companies in particular, and is being exacerbated by the retirement of the baby boomer generation. To overcome this shortage, companies need to appeal to millennials and Generation Z, who prefer a good work-life balance and flexible working models such as remote and hybrid work. Employer branding is the key to positioning yourself as an attractive employer.
The shortage of skilled workers is threatening many companies, especially small and medium-sized enterprises. Studies and data confirm this shortage in all sectors and occupational fields. As the baby boomers retire, this shortage will be exacerbated by the upcoming generational change. It is therefore important to attract millennials and zoomers as future skilled workers. To achieve this, employers must address the specific needs of these target groups. The forecasts for the future are not positive: the situation will get worse in the coming years. Companies therefore need to rethink their strategies.
One way to meet this challenge is to become better known as an employer through employer branding. In recent years, marketing strategy has become a central component for HR managers. This refers to all measures and strategies to present a company as an attractive employer and positively differentiate it from other competitors on the job market. This is particularly important for medium-sized companies, as they often have to compete with large corporations for talented employees.
Generation Z, which was born between 1997 and 2012 and has a new, digital perspective on the job market, places particular demands on employer branding. This is because Gen Z and millennials are questioning the importance of work in their lives, as the latest Deloitte Gen Z & Millennial Survey (German) shows:
- Although almost half (49 percent) of Gen Z and nearly two-thirds (62 percent) of Millennials say that work is central to their lives, they are looking for a good work-life balance.
- Interest in part-time jobs is growing. Four-day weeks are becoming increasingly popular.
- Gen Z and millennials appreciate the benefits of remote and hybrid working. Three quarters of respondents would consider changing jobs if their employer restricted remote working options.
Index
From analysis to action
In today’s world of work, it is essential to know the status of your employer brand. As a first step, take a close look at your social media presence and application process – including those of your competitors. Take into account the needs, goals and key figures of your target groups and include both the employee and employer perspective in the analysis.
Together with employer branding experts, develop a strategy on this basis that clearly defines the company’s direction. You set goals for different time horizons and establish clear communication channels and processes. You will draw a picture of the corporate culture and values, work out the advantages as an employer and create profiles for potential team members. Also consider which benefits make sense for employees, how best to address them and which recruitment measures should be considered.
The next step is to implement the planned measures. This package of measures includes areas such as social media, video production, search engine optimization and advertising as well as e-recruiting. Employee surveys can also provide insightful findings. Job advertisements are written, websites optimized, media strategies developed and influencer marketing campaigns carried out. It is important to continuously review all activities and adjust them if necessary. Particular attention should be paid to elements such as the careers page, company values, social media activities and the use of video content. Performance marketing in recruiting, employee benefits and the optimization of job advertisements are also key components. These aspects are discussed in more detail below.
1. Develop your own employer brand
Every company has its own culture and values that set it apart from other companies. These values must be clearly defined and communicated in order to attract applicants who can identify with them. However, it is not enough to simply define these values, they must also be authentic and anchored in the daily work and culture of the company.
A good example is a production company that places great emphasis on sustainability. The company can clearly communicate its values through environmental certificates and sustainable projects. In order to ensure a stable definition of corporate values, different perspectives within the company should be taken into account. In order to better understand the views of employees and any differences between them and their superiors, as well as the company’s self-image, it is advisable to hold a workshop.
2. Optimize the company website and career section
A company’s website is often the first point of contact for potential applicants. It is therefore important that it is designed to be user-friendly. Unfortunately, many websites are not well set up, especially in medium-sized companies. This is where we need to start. An intuitive and easy-to-navigate website makes it easier for visitors to quickly find the information they are looking for. An important target group is the mobile-savvy Gen Z, who have grown up with smartphones and tablets. To reach them effectively, mobile optimization of the website is essential. An illustrative example of this is a medium-sized company from the IT sector that uses chatbots to automatically answer frequently asked questions in the careers area. This can significantly simplify and speed up the application process.
3. Use social media & video content
Social media, especially TikTok, is very popular with Gen Z. Companies should use these platforms to create content specifically for this target group. They should not only publish content, but also actively interact with the community. For example, fashion companies could launch challenges on TikTok to encourage user creativity. This not only increases interaction, but also strengthens loyalty to the brand. Recruiting can be particularly successful if real employees are used as corporate influencers. They tell their followers about their day-to-day work and thus improve the employer’s image.
Videos are an effective way of telling authentic stories. They provide insights into everyday working life and show the corporate culture in action. For example, a start-up could create a video entitled “A day in the life of a developer” to give potential applicants a realistic impression of the work. Videos are very popular on social networks such as TikTok. Platforms such as LinkedIn also rate video content positively.
4. Better recruiting with performance marketing
Performance marketing enables companies to place targeted advertising for their target group. By analysing data, ads can be optimized to achieve better results. For example, a financial services provider could target professionals from the financial sector on LinkedIn.
Job ads also play a central role in the recruitment process. They should be clear, concise and factual and contain all relevant information. An appealing design also helps to arouse the interest of applicants. It is important to precisely describe the position, the desired job profile and the corporate culture and to provide a clear call to action. In the healthcare sector, for example, infographics can help to visualize complex requirements.
5. Offer employee benefits: Personalized and relevant
Corporate benefits are important for retaining employees and attracting new talent. However, it is crucial that they are not only attractive, but also realistic, affordable and fit the corporate culture. Here are some examples of benefits that companies should consider:
- Work-life balance: work-life balance is important to many employees. This includes flexible working time models and childcare options.
- Mobility: Whether public transport tickets, company cars or support for cyclists – mobility offers can make the journey to work more convenient and cost-effective.
- Training courses, workshops or conferences as further training opportunities show that the company is interested in the careers of its employees.
- Health and well-being: Fitness training, health checks or ergonomic workstations increase the general well-being of employees.
- Joint activities such as team events and company celebrations promote a sense of togetherness and create a positive working atmosphere.
Central KPIs for measuring employer branding measures
Given the high investment of time, resources and capital that goes into employer branding measures, it is essential to measure the success of these efforts. Without a clear measurement of success, companies run the risk of steering in the wrong direction or wasting valuable resources. Clear goals should therefore be defined and key performance indicators (KPIs) developed. These enable companies to continuously monitor, evaluate and adjust their employer branding strategies. This ensures that they achieve the desired results and offer a positive return on investment:
- Application rate: number of applications in relation to advertised vacancies.
- Quality of applications: Do the applicants match the job profile?
- Retention rate: How long do employees stay with the company?
- Employee satisfaction: Measurable through regular surveys and feedback tools. The development of the sickness rate can also be recorded here.
- Fluctuation rate: How often do employees leave the company, especially new employees?
- Employee Net Promoter Score (eNPS): Do employees recommend the company to others?
Conclusion
Digital employer branding is important in order to be successful in the competition for employees. Medium-sized companies should develop a clear and authentic employer brand and communicate this consistently via various digital channels. In addition to a good corporate culture, flexible working hours and the opportunity for mobility are key to attracting new employees. Any measure will only be successful if clear goals are defined in advance. By analyzing relevant key figures, plans can be continuously improved and adapted to the changing needs of the target group.
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