HR Departments Lack Control Over Employer Branding Despite Critical Talent Impact

A significant gap exists between HR departments' involvement in employer branding and its impact on critical talent-related outcomes, according to a new study by the HR Research Institute. The research highlights that while 62% of HR professionals believe their employer brand positively enhances company reputation, less than half see success in key areas like talent attraction and retention.

The study reveals a concerning leadership imbalance in employer branding initiatives, with marketing departments (43%) being nearly twice as likely to lead these efforts compared to HR departments (25%). This misalignment could explain why many organizations struggle to achieve HR-specific outcomes, despite maintaining strong corporate reputations.

The research also exposes a significant strategic void, with 40% of organizations operating without any formal employer branding strategy, while only 28% maintain a comprehensive and consistent approach. This lack of strategic direction could be particularly problematic as companies face increasing competition for talent.

The impact of this disconnect is evident in key performance metrics, with less than half of organizations reporting success in critical areas such as diversity and inclusion (46%), talent attraction (44%), employee engagement (43%), and retention (42%). These numbers suggest that current employer branding efforts may not be effectively supporting core HR objectives.

Looking forward, the study indicates that artificial intelligence will play an increasingly important role in employer branding, with 41% of organizations expecting to use AI for improved candidate targeting and 36% for personalizing candidate experiences. This technological shift presents both opportunities and challenges for HR departments already struggling to maintain influence over employer branding strategies.