Having a label means that the business meets certain recognised standards or criteria. It serves as a sign of trust and credibility for stakeholders, enhancing the organisation’s reputation and competitiveness in the market. This is equally true for employer branding labels such as Great Place To Work certification or Best Workplaces, which are more crucial today than ever before.
We investigated to what extent employees feel it is important for their future employer to be recognised or labelled as an employer of choice. The respondents were asked 3 questions about workplace recognition:
- Do workplace labels affect their job search?
- Does it affect their intention to apply for the job?
- And does it affect their intention to stay at the organisation that is recognised?
Do workplace labels affect the job search?
44% of job seekers are inclined to actively look for organisations that are recognised as good employers. Job candidates will look for signs at a company’s careers page or on social media accounts, or they will find a list of organisations that were recently proclaimed as best employers by a third party (such as Great Place To Work® Certified™ profiles, and Glassdoor-style websites). 27% of the respondents give a neutral answer, and 30% say they are not inclined to specifically look for organisations that have a label of being a good employer.
Do workplace labels impact the job application?
Half of the respondents (51%) report that they are more inclined to apply for a job in an organisation that is recognised with an employer branding label. 33% are neutral, and 16% report that having an employer recognition label would not influence their decision to apply to a company. Research indicates that companies should use employer labels in recruitment advertising, because they make organisations more attractive to potential job candidates by increasing their perception of the prestige and ‘fit’ between employee and organisation.
Higher effect for younger people
The same question was posed to graduates belonging to the so-called ‘Gen Z’ who did not have any full-time working experience before answering our survey. Among this group, most graduates (79%) indicate that they would be more likely to apply to a company that is recognised as a great employer by its employees. 16% are neutral, and 5% of students report that having an employer recognition label does not influence their decision to apply to a company. It’s clear that graduates have a different perspective on labels compared to individuals with prior work experience. Want to attract Gen Z? Certification sets you apart in a challenging job market and strengthens your position as employer of choice.
The effect of an Employer Label on retention
The respondents also indicated to what extent they would be more inclined to stay longer with an organisation that is regarded as a good employer by its current employees. More than half (56%) say they would stay longer when the organisation has an employer label. 27% are neutral, and 17% say that an employer label does not affect their inclination to stay longer with the organisation.
Our findings are in line with what other research suggests about workplace certifications and associated lower employee turnover. The higher in the ranking of good employers, the lower their employee turnover.
Labels that validate the company’s commitment to excellence enhance its attractiveness to potential employees, but they have an even stronger effect on employee retention. Earning the Great Place To Work® certification proves your ability to foster great employee experiences, sets you apart in a challenging job market and strengthens your position as employer of choice.
