While the majority of companies are investing in employer branding, fewer than one in five can effectively communicate the return on that investment, a new report from The Conference Board has found
According to the report, 78% of organizations surveyed are putting money into employer branding efforts—strategies aimed at positioning themselves as attractive places to work in order to recruit and retain top talent. Despite that, just 18% said they were able to clearly convey the return on those investments internally.
“Employer branding is crucial for organizations that are focused on growth,” said Diana Scott, U.S. Human Capital Center Leader at The Conference Board. “But even more important is the ability to demonstrate a clear return on branding investments.”
The findings are based on two separate reports—one that examines the challenges in measuring employer branding and another that outlines strategies to evaluate its impact.
Talent attraction the top driver
The primary reason cited for investing in employer branding is to attract top-tier talent, with 87% of respondents listing it as their main objective. Other motivations included enhancing company reputation (39%) and reducing hiring costs (6%).
Investment levels vary based on company size. Smaller organizations, with fewer than 25,000 employees, typically spend under $500,000 annually, while larger firms with more than 100,000 employees often exceed $1 million.
Many try to measure results — but few succeed
Although 68% of organizations said they attempt to measure outcomes from employer branding, only 41% assess return on investment directly. And just 3% reported using revenue per employee as a measurement tool.
Commonly tracked metrics include social media engagement (49%), career site visits (45%), and application rates (41%).
More than half of leaders surveyed said their employer branding efforts had a positive impact on public perception. Another 19% said it helped build on already positive impressions.
Measurement barriers remain high
Respondents cited several roadblocks in quantifying branding outcomes. These included inconsistent or unavailable data, difficulties in aligning efforts with business goals, and challenges in isolating cause and effect.
“The measurement of ROI requires access to, and manipulation of, data that is housed in different technology platforms that are owned and managed by different business units,” the report noted.
Erka Amursi, principal researcher in human capital at The Conference Board, said organizations should be selective in the metrics they track. “Businesses need to look at their specific talent strategies and business goals when choosing the metrics to track,” she said.
Strategies to improve measurement
The report recommends focusing on targeted KPIs—such as cost per hire or open chair cost—when comprehensive measurement is not feasible. Other strategies include establishing baseline metrics, using innovative data points, and aligning branding efforts with broader organizational goals through collaboration with finance and HR teams.
