How to Evaluate Employer Brands: A Monetary Approach

Abstract

The attraction and retention of superior talents is increasingly becoming a key challenge for many organizations. To cope with the ongoing shortage of talented people, academics and practitioners agree on the pivotal role of an attractive employer brand to succeed in the persistent war for talent. The evaluation of employer brands is therefore of critical importance for human resource managers to assess their potential to attract talents and to benchmark the effectiveness of their employer branding activities. However, appropriate key figures to evaluate employer brands are scarce. In light of this shortcoming, the chapter presents a monetary approach to evaluate employer brands. Moreover, this study investigates the impact of relevant employer branding factors on the monetary evaluation of employer brands. The presented employer brand value score model provides a monetary key figure that allows a detailed and monetary evaluation of employer brands in comparison to relevant competitors and with respect to different target groups. Results of the empirical study support the validity of the model to capture the evaluation of employer brands in a monetary key figure and highlight the importance of a segmented approach to employer branding.