As the shortage of skilled workers intensifies across the United States, a growing number of employers are turning to employer branding to improve recruitment and retention, according to the United States Institute for Quality (USIQ).
The strategy, which focuses on promoting a company’s culture, values, and employee experience, is gaining traction among businesses seeking to differentiate themselves in an increasingly competitive labor market.
“With skilled labor in short supply, employers must do more than post job openings—they need to build a compelling identity as a place to work,” said PhDr. Oliver Scharfenberg of the USIQ.
Defining the employer brand
Employer branding refers to the practice of shaping how current and prospective employees perceive a company. Unlike traditional marketing, which targets consumers, employer branding targets job seekers by highlighting workplace culture, development opportunities, and benefits.
Companies that effectively communicate their values and employee experience are better positioned to attract high-quality applicants, the USIQ said. But branding isn’t just about recruitment—it also plays a role in retention.
“A strong employer brand fosters employee pride and loyalty, which can lead to higher job satisfaction and lower turnover,” Scharfenberg said.
A response to shifting worker expectations
The shift toward employer branding comes as job seekers—particularly those in high-demand technical and trade roles—have more options than ever. Workers are increasingly prioritizing organizational culture, flexibility, and purpose in their employment decisions.
In this environment, companies that fail to clearly define and communicate their workplace identity risk being overlooked by top candidates. USIQ notes that branding efforts can include employee testimonials, values-driven messaging, and transparent communication about benefits and career advancement.
Retention as a key benefit
Beyond attracting talent, employer branding can help companies retain the workers they already have. By reinforcing a positive internal culture, organizations can reduce the likelihood that employees will seek opportunities elsewhere.
“In today’s job market, retention is just as critical as recruitment,” Scharfenberg said. “Employer branding supports both.”
As labor shortages continue to affect industries from healthcare to construction, employer branding is emerging as a key tool for organizations aiming to remain competitive. USIQ encourages employers to view branding not just as a marketing exercise, but as a long-term investment in workforce stability.
