Businesses need time, resources, capital, and efforts to invest in a new venture or a project. The Return on Investment (ROI) is the key performance indicator and a metric used by most businesses. It is considered the most useful tool that helps businesses measure success, ultimately leading to business profitability, ensuring the deployment of capital.
The ultimate goal of any business organization is growth combined with profitability. Human capital is an essential factor for businesses and is loaded with creativity. The employee’s knowledge, performance, and competence play a crucial role in creating value for customers, leading to increased revenue.
What are the Functions of Business that affect Return on Investment (ROI)?
No matter what business strategies are being followed by the organization, the management continually keeps trying to improve and make the marketing mix perfect in order to increase productivity and Return on Investment (ROI).
Other than the marketing mix, there are various functions that affect the ROI of business and improve it by cutting costs and improving business processes. However, in the competitive business environment, there are many business functions that are often neglected.
Human Resources is one such function of business that is often neglected by the management and which does not get much importance. However, businesses need to understand that organizations with a large group of employees can have a great potential to increase the business ROI through “Employer Branding”.
Employer Branding refers to the process of influencing and managing the reputation of the organization among employees, key stakeholders, and job seekers. The process encompasses everything done by the employer to make the organization desirable to work from the employees’ viewpoint.
Employee retention and creating a sense of loyalty in existing employees towards the organization is crucial for employer branding from the organization’s point of view. In the current scenario, the business environment and the work culture are closely viewed by job seekers.
Therefore, it is crucial for organizations to have a strong HR team committed to creating a positive vision of organization and brand to the job seekers to improve the business metrics and have a happy workforce with the help of employer branding.
Effective ways to improve Business ROI with Employer Branding
Employer Branding provides organizations with various benefits, and the following are few ways in which Employer Branding affects and improve the Return on Investments (ROI):
- It helps make the Recruitment Process quick and Easy
Hiring new employees can be a complex process. It can be time-taking to fill the post with the right talent and in financial terms as well. Therefore, having a good employer brand helps reduce the time, making the hiring process sustainable, which ultimately leads to the direct benefit of the organization.
- It helps in boosting Retention Rate of the Employees
Excellent and positive work culture in the organization evokes the feeling of belonging in the employees and motivates them to perform better, helping the organization retain quality employees. Employee retention ultimately brings economy and stability within the organization.
- It Brings Down the Hiring Cost while Improving the Quality of the Process
An effective employer branding reduces the cost and time of the recruitment process. It helps attract the best talent for the correct position, thereby improving the quality of the hiring process, which can be a great asset to the company.
- It Encourages Employees to perform Better and improves Employee Engagement
Employer branding helps organizations better brand perception for employees leading to improved business performance because satisfied employees stay motivated and always aim to perform better, which increases productivity leading to an increase in business ROI.
A positive employer brand is critical, especially in today’s competitive job market and environment. Employees are the greatest assets of the organization, and a sense of positivity in their professional interactions can have significant benefits, which ultimately leads to the growth of the business and an increase in business ROI.
Therefore, businesses need to have a talented leadership-bound team to drive the business forward by creating the best impression of your organization to the employees by making them feel it is a great place to work with the help of employer branding.