Did you know that the concept of the “low income trap” is also relevant in the world of HR? A low income trap is a condition wherein a person or entity is caught in a cycle of low income that stagnates their socioeconomic growth. In terms of HR, if a company consistently pays low wages and benefits, they may only attract low-level employees. As a result, company productivity remains low, and company revenues and profits are also limited. This leaves companies unable to afford better benefits and higher salaries in the future, thus restarting the cycle.
As an analogy, looking for talent can be compared to buying shoes. Buying high quality shoes that cost more in the short term can reap long term benefits as it will last longer and be more comfortable to wear. So, despite the high upfront price, it is actually the more economical option in comparison to buying cheap shoes that you will need to replace often. The same can be said when recruiting employees. Investing in quality talents may seem expensive at first, but the results will be better for the organization and more sustainable in the long term.
For recruiters, this is a classic problem. How do we find the best candidates with high skills and relevant working experiences that still fit into the company budget?
The solution to this problem is simple: Employer Branding.
Employer Branding is a company’s way to present itself as an attractive workplace for prospective employees.
The benefits of a good employer brand include:
- Attracting the Best Talent: With a good reputation, more people will know about the company and it will become a place targeted by quality talents.
- Reducing Recruitment Costs: The recruitment process becomes easier and faster by cutting job advertising costs.
- Increase Employee Retention: Employees tend to be more loyal and stay longer at companies that treat them well and have a good reputation.
- Increase Productivity: Employees who are proud to work for a company with a good reputation are usually more motivated and productive.
- Building a Positive Image: A good company image in the eyes of employees and prospective employees will also positively impact the overall public image of the company for clients and customers.
Through building a strong Employer Brand, companies can attract quality talents who can increase productivity and innovation for sustainable growth as well as attract more clients and customers. This allows companies to continue investing in their employees and prevents companies from falling into low income traps.
Does your company also face similar challenges in attracting and retaining talent?
Come learn more about how to develop a solid employer branding strategy and become Great Place To Work® certified today!
Contact Dayalima Recruitment for consultation and insight in building a strong employer brand and effective custom recruitment strategies.
