Internal and external employer branding - does the division still make sense?

Companies are outdoing themselves in creating attractive workplaces to attract and retain talented professionals. However, does the traditional division between internal and external employer branding still correspond to the realities of today's labour market?

What is employer branding?

Employer branding is a comprehensive strategy for building a company's image as an attractive employer. It encompasses a range of activities aimed at creating a positive image of the organisation among both current employees and potential candidates. However, effective employer branding goes far beyond traditional HR activities, combining elements of marketing, communications and human resource management. Research conducted by LinkedIn shows that companies with a strong employer brand report 50% lower costs of hiring new employees. This clearly demonstrates the importance of employer branding to an organisation's success. However, simply creating an attractive image is only the beginning - the real challenge is to consistently maintain and develop it over the long term.

Employer branding supports the development of an organisation on many levels. Above all, it helps to attract the best talent from the labour market. Candidates increasingly pay attention to the organisational culture, development opportunities or values represented by the employer. A strong employer brand allows a company to stand out from the competition and become the first choice for the most desirable professionals.

Employer branding also has a positive impact on the engagement and loyalty of existing employees. When a company consistently delivers on its employer brand promise, it creates a work environment where people feel valued and motivated to give their best. This, in turn, translates into higher productivity, innovation and, ultimately, better business results.

Internal and external employer branding

Traditionally, employer branding has been divided into two main areas - internal and external. Internal employer branding focused on building a positive image of the company among existing employees, while external branding focused on attracting new talent. Nowadays, with work-life boundaries often blurring and social media enabling instant sharing of experiences, this division is becoming increasingly fluid.

Internal employer branding includes activities such as creating an engaging working environment, developing a values-based organisational culture and offering attractive career paths. In turn external employer branding focuses on building a positive image of the company in the labour market through recruitment campaigns, presence at job fairs or activity in social media.

However, does such a division still make sense? Increasingly, we are seeing that activities directed at the inside of an organisation have a direct impact on how it is perceived externally. Employees become brand ambassadors by sharing their experiences on social media or employer review sites. On the other hand, external employer branding activities influence the morale and engagement of existing employees, who observe how their company is perceived in the market.

Instead of a rigid division between internal and external employer branding, it is worth considering a more holistic approach. Consistency of message and authenticity become a priority - the employer brand promise needs to match the actual experiences of employees. Only then can a company build a lasting and credible employer brand that attracts the best talent and retains them for the long term.

Internal employer branding best practices

1. Effective internal employer branding is based on several pillars. The first is effective internal communication. Transparency and openness in the communication of information build employees' trust in the organisation. Regular team meetings, newsletters or internal social media platforms are tools that enable the free flow of information and ideas within the company.
2. Incentive schemes are another important element of internal employer branding. However, contrary to popular belief, it is not just about financial bonuses. Non-financial forms of motivation are playing an increasingly important role, e.g. flexible working hours, the possibility to work remotely or well-being programmes. Company Patagonia - known for its innovative approach to human resources management, offers its employees, among other things, the possibility to surf during working hours, as long as this does not interfere with their duties. This unusual approach motivates employees and reinforces Patagonia's image as an employer that cares about work-life balance.
3. Organisational culture is the foundation on which a strong employer brand is built. Companies that can create a unique and engaging culture gain a competitive advantage in the labour market. Zappos - an American online footwear retailer, is renowned for its corporate culture based on values such as 'Deliver WOW Through Service' and 'Create Fun and A Little Weirdness'. However, their values are not empty slogans - they permeate every aspect of the company's operations, from the recruitment process to day-to-day work.
4. Employee development is another element of internal employer branding. Companies that invest in training, mentoring or talent development programmes improve the competences of their employees and thus build their loyalty. Google, known for its innovative approach to human resources management, offers its employees the '20% Time' programme, where they can dedicate one day a week to their own projects. This approach gives employees a sense of autonomy and influence over the company's development.

External employer branding tools

Social media has become one of the most important channels for employer branding. Companies are using LinkedIn, Facebook if Instagram to showcase their corporate culture, the achievements of their employees or the daily life of the company. However, an effective social media presence requires a coherent strategy and an authentic message. Instead of presenting an idealised image, it is worth showing real situations and the people behind the company's success.

Employer branding campaigns is another tool for building an employer's external image. Companies are reaching for innovative forms, such as interactive recruitment games or virtual open days. Examples include Crack the Code" campaign conducted by the British intelligence agency GCHQ. Instead of traditional job advertisements, the agency published a complicated cipher on the internet, the solution of which offered the chance to start the recruitment process. The unusual form attracted media attention, allowing the company to reach the most talented candidates.

Rebranding is a process that can have a significant impact on the perception of a company as an employer. However, to be effective, it must involve not only a change of logo or website, but more importantly a transformation of the corporate culture. An example of successful rebranding can be seen at Microsoft, which under the leadership of Satya Nadella has undergone a transformation from a corporation perceived as ossified and bureaucratic to an organisation open to innovation and collaboration. The changes have improved the company's image among customers and made it one of the most desirable employers in the technology industry.

Platforms such as GoWork if Indeed enable employees to share their experiences. Companies therefore need to be aware that every action they take - whether positive or negative - can be made public immediately. This makes authenticity and consistency of message very important in employer branding.

Why invest in employer branding?

• Investment in employer branding translates into higher employee engagement. Research by Gallup shows that companies with high levels of employee engagement report 21% higher productivity. Engaged employees work more efficiently, but also become brand ambassadors, attracting new talent to the organisation.
• A company's reputation as an employer has a direct impact on its ability to attract the best candidates. When a company's success is determined by its people and their competences, the ability to choose from the best professionals in the market becomes an important competitive advantage. Companies with a strong employer brand can expect to receive more applications from highly qualified candidates.
• Reducing employee turnover is another important benefit of investing in employer branding. Companies that are able to create an engaging working environment and offer development opportunities can expect greater employee loyalty. This, in turn, translates into lower costs for recruiting and training new employees, as well as maintaining knowledge continuity within the organisation.
• A strong employer brand translates into a positive perception of the company by customers and business partners. Research shows that companies perceived as attractive employers are also more trusted by consumers.

Investment in employer branding is a must for companies that want to succeed. Building a strong employer brand requires a consistent, long-term approach that integrates internal and external activities. Companies that are able to create an authentic and engaging employer image gain loyal employees and a competitive advantage in the market.