The risks of neglecting employer branding and its impact on talent attraction and retention

A recent LinkedIn survey by Servitalent reveals a concerning reality: 45% of respondents say their company does not prioritize investment in employer branding, while 23% admit that although some efforts exist, there is still significant room for improvement.

At a time when attracting and retaining talent has become one of the biggest challenges for companies, can they really afford to keep ignoring the impact of their employer brand?

Employer branding: more than a strategy, a business imperative

Employer branding goes far beyond a slogan or a communication campaign. It’s the reputation and perceived value your company holds as a place to work.

Today, in a market defined by the scarcity of qualified professionals, companies with a strong employer brand not only receive more job applications but also attract candidates who are better aligned with their culture and values.

According to the Leading Brands of Spain Forum, companies with a strong employer brand generate higher quality employment and significantly reduce their hiring costs.

What happens when you don’t invest in your employer brand?

Difficulty attracting qualified talent

In competitive sectors, companies without an attractive brand either go unnoticed or are directly ruled out by top professionals. Just as companies carefully choose who to hire, candidates also choose where they want to work.

In fact, 75% of job seekers research a company’s reputation before applying (Source: InfoJobs). If what they find isn’t compelling, both the quantity and quality of applications can drop drastically.

Rising hiring costs

When a company fails to project an appealing image, it needs to compensate with higher spending on job ads, external recruitment services, or enhanced compensation packages to grab candidates’ attention.

Organizations with strong employer branding can reduce their hiring costs by up to 40% (Source: Employer Branding Now – Universum).

High employee turnover

The problems don’t end with hiring. If the employee experience doesn’t match the promises made during the recruitment process, disengagement and turnover rise quickly.

Beyond impacting workplace culture, each resignation carries a financial cost: replacing an employee can cost between 50% and 200% of their annual salary, according to SHRM.

Damage to corporate reputation

In today’s digital landscape, platforms like Glassdoor can amplify any negative employee experience. Poor reviews from current or former employees can harm not only talent attraction efforts but also your reputation among clients, suppliers, and even investors.

Loss of competitiveness

Without a clear employer branding strategy, companies risk losing key talent — and with it, their ability to innovate, grow, and adapt to market changes.

Studies show that organizations with engaged teams achieve financial results up to 20% higher than those that neglect their employee value proposition.

How to start building a strong employer brand

If you recognize that your employer image needs improvement, here are a few essential steps to get started:

1. Define your employee value proposition (EVP): identify what makes your company unique and communicate it clearly.

2. Foster an authentic internal culture: satisfied employees are your best ambassadors.

3. Be transparent: show the reality of your workplace, your values, and your social impact.
4. Measure and improve: listen to your current team and track how external talent perceives your brand to fine-tune your strategy.

What is the market saying about your company?

While 45% of companies admit they’re not prioritizing this investment, a strong employer brand is not a luxury — it’s a strategic tool to attract and retain talent, while standing out from the competition.

At Servitalent, we help you strengthen your employer brand so it becomes a true competitive advantage.

Is your company ready to boost its positioning as an employer of choice?