Navigating the New Landscape of Employer Branding: AI, ESG, and Live Experiences. Mid-Year Trend Update from the Industry

In the ever-evolving landscape of employer branding, staying ahead of trends is crucial. As an employer branding professional, you understand the importance of adapting to new realities to attract and retain top talent. Universum's latest "Employer Branding NOW 2024" research highlights several key trends that will shape our strategies moving forward. Despite these trends just being released, the rapid pace of technological, talent, and economic changes necessitates an immediate update to keep up with the industry. Here’s an expanded analysis, integrating insights from the report with actionable advice for your organization.

The 2024 trends in employer branding have just been released, but the industry is already witnessing significant changes. These shifts are driven by technological advancements, evolving talent expectations, and dynamic economic conditions. It's crucial to update our strategies accordingly.

1. Employer Branding as a Top Priority: One thing that has not changed is the critical importance of employer branding. For the world's most attractive companies, employer branding remains a top priority. 68% of these companies have stated that employer branding is one of their most important priorities. This highlights the critical role of a strong employer brand for any company aiming to be seen as an attractive workplace. This significant focus justifies the substantial investment these companies make globally in recruitment marketing, averaging $3.7 million USD.

2. Inspiring Purpose: Employer Value Propositions (EVPs) that integrate an inspiring purpose have seen an 11% year-over-year increase. This suggests that purpose-driven messaging can be a significant differentiator in attracting talent. Employees today are looking for more than just a paycheck; they want to work for organizations that have a clear and meaningful mission. However, in my personal experience, it is evident that behind these goals, especially with Generation Z, evidence must be found. It is not enough to set a lofty goal; it requires concrete backing. Many companies struggle to provide substance behind grand expressions, although significant achievements have been made, particularly in sustainability and ESG goals. Nonetheless, greenwashing remains prevalent, which Generation Z particularly dislikes. Beyond the growing importance of an inspiring purpose, companies, especially large corporations, face the challenge of making these goals tangible and actionable to attract Generation Z.

3. Messaging Trends: DEI Falling, ESG Scaling Up: Diversity, Equity, and Inclusion (DEI) messaging is scaling down globally, decreasing by 15% year-over-year, while Environmental, Social, and Governance (ESG) initiatives are scaling up, with ESG now being measured for the first time and reaching 22%. This significant growth indicates its rising importance. This shift is partially due to legal uncertainties surrounding DEI programs, particularly in the U.S. following recent Supreme Court decisions. Additionally, many large corporations face cultural complexities when addressing DEI globally. In some countries, DEI initiatives are openly embraced and can significantly boost a company’s reputation. However, in other regions, these topics can be more divisive. As a result, companies might not communicate DEI values as intensively everywhere, leading to perceptions of inconsistency. This can result in credibility issues, as employees and stakeholders expect a uniform stance on these values.

In contrast, according to companies, it seems that ESG and sustainability topics are easier to communicate and champion across different cultures globally compared to Diversity and Inclusion initiatives. The emphasis on sustainability and environmental topics within ESG is particularly popular globally. These themes are not only crucial from an investor expectations standpoint but also provide a flexible framework that companies can adapt to resonate locally. This adaptability allows organizations to highlight specific aspects of ESG that align with local societal values, thus enhancing their reputation in different regions. The widespread acceptance of ESG initiatives makes it a powerful tool for employer branding, as it can be tailored to bring reputational benefits across various cultural contexts.

4. Employee Experience and Internal Mobility: Over the years, we have observed a significant shift in focus from external candidate experience to internal employee experience among HR leaders and CEOs. This trend emphasizes retention over attraction. One of the most striking developments within this context is the explosive year-over-year growth in internal mobility. Companies are increasingly focusing on how to support internal career paths, ensuring transparency and clarity in career progression. Between 2023 and 2024, there was a remarkable 45 percentage-point increase in those who consider internal mobility a top priority within the World's Most Attractive Employers category. Currently, 33% of talent leaders identify this as their primary focus. Initiatives such as internal job fairs, alumni programs, and reskilling efforts are becoming essential. The emphasis on internal mobility is driven by the need to activate existing networks and retain talent. Reskilling has also become critical, particularly with the rapid advancements in AI, requiring companies to upskill their workforce to meet new challenges.

However, many organizations are still in the early stages of strategic reskilling, often appearing more reactive than proactive. Despite these challenges, the focus on internal mobility within the broader employee experience is the most significant trend in talent management today.

5. Technology and Live Events in Recruitment: The use of AI chatbots on career sites has increased by 10 percentage points since 2021, indicating a strong trend towards automation in initial candidate interactions. Conversely, the popularity of video interviews has decreased by 23 percentage points over the past three years, and virtual events have seen a similar decline year-over-year. This contrast highlights a significant shift in the candidate experience journey. While AI chatbots streamline the preliminary stages of recruitment, there is an emerging trend where companies are prioritizing personal, memorable live experiences over digital ones. As organizations adapt to the new normal, they are increasingly favoring in-person events such as open days and fan activities for fresh graduate recruitment. These live events offer a unique opportunity to create lasting impressions and build deeper connections with potential hires. This blend of digital engagement followed by impactful live interactions underscores the importance of incorporating at least one memorable personal touchpoint in the recruitment process to attract top talent.

A) Update Your AI Roadmap and Manage Risks: Continuous improvement in AI integration is essential. Ensure that new technologies are fair, transparent, and free from bias. Invest in upskilling programs to help employees adapt to AI-driven workflows. Additionally, manage risks related to data privacy, particularly GDPR compliance and personal data security. Rapid implementation of new tools and group access for teams can pose data and IT security challenges, which must be addressed proactively.

B) Maintain Human Touchpoints and Live Experiences: Despite advancements in AI, the human element remains critical in recruitment. In-person contact is particularly valued, with 85% of talent leaders citing in-person events as crucial for on-campus recruitment, a 14-point increase since 2023. Personal interactions foster trust and connection, which are vital for building long-term relationships with candidates. Live experiences enhance these touchpoints, providing memorable and impactful engagements.

C) Revamp Onboarding with Face-to-Face Interactions: For remote or hybrid teams, rethink your onboarding processes. Ensure entry-level employees have sufficient facetime and mentorship opportunities. Document processes and technical knowledge comprehensively to foster a connected workplace community. Engaging new hires early and effectively with face-to-face interactions can set the tone for their entire tenure with your company.

In the race to stay ahead in employer branding, having a strategy is essential, but what truly sets companies apart is their ability to implement those strategies effectively. It's no longer enough to talk about what needs to be done – execution is key. This is especially true when it comes to integrating AI and organizing live events. The pace of change demands excellent project management and implementation skills.

In the realm of employer branding, it's not the big fish that eats the small, but the fast fish that eats the slow. By staying proactive and adaptable, you can ensure your employer brand remains strong and appealing in a competitive talent market. Embrace these strategies and witness your organization attract top talent, foster innovation, and build a resilient, future-ready workforce.