Why do some companies function as a "talent magnet"?

Current labor market situation 

According to the latest data from the European Union, the average unemployment rate across the EU-27 is currently 5.9%. Slovenia ranks 4th with a 3.3% unemployment rate, Hungary 8th with 4.3%, and Croatia 10th with 4.9%. 

Unemployment below 5% means there are very few candidates available. In such conditions, companies have several strategies to deal with this challenge. 

They can choose short-term strategies, such as raising wages and benefits, recruiting abroad, or collaborating with recruitment agencies, as well as more long-term strategies, like investing in employee development and building a strong employer brand—both of which are considered a "long-term game."

Employee development – a long-term strategy for retention 

When companies make a strategic decision to heavily invest in developing their current employees, equipping them with new skills, these employees become more adaptable and can take on various roles. 

This not only enables internal promotions but is often cheaper and more effective in the long term than constantly searching for new hires. 

According to Gallup's research (2022), employees expect a 31% salary increase when switching jobs to a different company. Opportunities for advancement and acquiring new skills also boost employee motivation and loyalty, making it crucial for the employer brand.

Employer brand as a key factor in standing out in the labor market 

What exactly is "employer branding"? 

It is not just a buzzword but the core of successful recruiting. It impacts everything—from attracting "creme de la creme" candidates to reducing turnover—and ensures that the employer stands out in a highly competitive labor market. 

Simply put, an employer's brand is the reputation they hold in the job market, among candidates.

As a recruitment agency, we notice that the challenge of finding candidates varies between companies, and much of it depends on the strength of the employer’s brand.

So, what do companies with a successful employer brand do well? 

In addition to focusing on employee development, "upskilling," and "reskilling," companies with a strong employer brand focus on other key areas:

Clear and attractive communication of values 

Companies with a strong employer brand clearly express their vision, mission, and values, which attract talent that aligns with their culture. Take, for example, one of the tech giants like Apple. 

Their brand is centered around innovation, creativity, and the impact employees have on the world. Apple seeks individuals who share these values, ensuring long-term retention. 

Besides attracting creative and innovative individuals, Apple’s culture fosters their ideas and creates an environment where employees want to develop and contribute to collective goals.

Comprehensive candidate experience 

A candidate’s first impression of a company is often formed during the recruitment process. The candidate's experience starts with transparent communication in job postings, during interviews, and negotiations.

Candidates appreciate transparency, kindness, and feedback, even if they are not selected. A positive experience continues through onboarding, employment, and offboarding. 

A negative experience, on the other hand, can lead to long-term reputational damage. However, a good experience increases the chances that the candidate will return or recommend the company to others. 

It is entirely possible to part ways with an employee while maintaining excellent relationships.

Active presence on social media 

If we want potential candidates to know what our culture is like, we must successfully communicate it not just internally but externally as well. 

Through a presence on social media or other platforms, companies can communicate successes, projects, culture, events, and employee stories, thereby creating a transparent image that attracts talent. 

Potential candidates often seek information about companies on platforms like LinkedIn, Facebook, X (formerly Twitter), Instagram, or pose questions about companies in online communities such as Reddit or Facebook groups.

Highlighting a company’s real culture through posts like videos from the workplace or employee testimonials gives candidates a glimpse into what they can expect. This builds trust and increases visibility in the job market. 

Furthermore, an active presence on social media strengthens the connection with current employees and enhances their sense of belonging. 

The key is to choose the right platform where your candidates are active. 

Focus on channels that attract the talent you are seeking, such as LinkedIn for professionals, Instagram for creative, younger candidates and X for tech candidates.  

Resources:  

• https://www.gallup.com/workplace/405257/employees-higher-pay-money-won-fix-problems.aspx
• https://blog.hubspot.com/marketing/employer-branding 
• https://www.destatis.de/Europa/EN/Topic/Population-Labour-Social-Issues/Labour-market/EULabourMarketCrisis.html?fbclid=IwY2xjawFzKctleHRuA2FlbQIxMAABHWJTKrM4GBQqpdjNdhxSv9mUHfA3N5Xsf11q1kbGMJjtySIpQ463APYnIQ_aem_68IHdQtxyAOO4bE8dVc2VQ