the impact of job security on your employer brand.

Job security and employer branding are beneficial tools to help companies attract, retain, and motivate top talent. In fact, the latest Randstad Employer Brand Research survey found that job security is the third most important driver that makes an employer attractive. 

It’s interesting to explore the intricate relationship between job security and employer branding, including the advantages of offering job security, and the foundational elements that contribute to it.

what is job security?

From an employee’s perspective, job security means they are unlikely to lose their job in the near future. This could mean that they believe the business they work for is unlikely to close down in the upcoming period or that they are valued enough within their role and are unlikely to be dismissed. 

On the other hand, to an employer, job security can mean economic stability, organisational stability, or the ability to flex to changing customer needs. Promoting job security is a shared responsibility between employers and employees. 

Organisations should implement fair and transparent workplace policies, maintain open communication channels, and provide opportunities for professional growth to provide job security. In addition, employees can enhance their job security by continuously developing their skills, staying adaptable in a changing work environment, and demonstrating their value to the organisation.

decoding the relationship between job security & employer brands

There is a direct correlation between job security and brand reputation. In fact, the two are inextricably intertwined. For example, if a company continually hires, fires, and re-hires employees at short notice, it will develop a poor reputation. 

A poor or unfavourable reputation can lead to employee attrition and decreased interest in job applications. Additionally, job security cultivates employee loyalty, engagement, and productivity, all of which contribute to improved financial performance and increased profits.

However, it’s important to consider the financial impact of a poor reputation and decreased job security. For example, a poor reputation may result in increased employee turnover. Between onboarding, hiring, and training costs, Forbes estimates the employee turnover cost may equal 33% of that employee’s annual salary. This cost is before you consider the impact of employee turnover on team morale and productivity.

embracing the power of job security 

In addition to the financial advantages of strong employer branding and job security, businesses with a positive brand image can also look forward to the following:

• increased brand attractiveness. Organisations with a positive reputation for job security are more likely to attract top talent. These employees will perceive the organisation and its brand as reliable, supportive, and a good career move which will draw them to the brand. 
• increased trust and loyalty. Employees are more likely to remain loyal, dedicated, and committed to an organisation with positive employer branding. This loyalty translates into positive word-of-mouth, creating a self-fulfilling prophecy of job security. 
• improved stakeholder perceptions. Positive stakeholder perception strengthens the brand reputation, as it demonstrates the organisation’s ability to consistently deliver value and maintain trusted partnerships.
• reduces employee turnover. A strong employer brand will reduce employee turnover by minimising dismissals, redundancies, or resignations. This will increase job security, reduce training time, and minimise recruitment costs. 

building strong foundations: the building blocks of job security

There are several foundational elements that contribute to creating a stable and secure employment environment. These are called the building blocks of job security and include the following: 

• economic stability. A stable economy provides a healthy and conducive environment to offer job stability. However, economic stability is the cumulation of several external PESTEL factors, many of which are unrelated to the specific operations of your business. For example, how keeping up with developing technologies such as AI, which a quarter of the UK workforce regularly use, can streamline employee operations and make businesses more profitable. To provide job stability even in times of uncertainty, it’s important to have a strong pipeline of business to prevent the financial constraints which may detract from job stability. 
• industry and sector. Different industries offer differing levels of job security. Sectors such as healthcare, government, and education tend to offer more stable employment due to the essential nature of the services they provide. In addition, it’s important to consider that the stability of various industries can differ greatly. The 2024 REBR results highlighted pharma life science as the most attractive sector for UK workers, followed by marketing & media and manufacturing:

• company size. Established companies often have more significant resources and stability owing to the size of their business. This allows them to offer higher levels of job security. In contrast, startups or smaller companies may encounter more uncertainty and challenges, especially during their initial stages, which detracts from their ability to offer job security.
• corporate culture. Companies that prioritise employee well-being, long-term development, and work-life balance are more likely to consider job security as an integral part of their overall value proposition. For example, according to REBR 2024, UK employees generally agree (68%) that their current employer offers job security and recognise this as one of their top five drivers to stay with a business. When breaking the data down by generations, baby boomers are the most passionate about job security, with two thirds ranking it as the most important factor when finding a new role.
• employee skills and performance. The skills, expertise, and performance of employees also influence job security. Those who consistently contribute value, demonstrate adaptability, and possess in-demand skills are more likely to enjoy job security, as they are regarded as valuable assets to the organisation.
• effective workforce planning. Job security is enhanced through effective workforce planning, which aligns organisational needs with the skills and capabilities of the workforce. By anticipating future demands, identifying skills gaps, and implementing development programmes, employers can maintain job security by ensuring a well-prepared workforce.

the bottom line on job security

The link between job security and positive employer branding is undeniable. 

A positive employer brand will attract top talent, increase employee retention, build trust and loyalty, and improve stakeholder perceptions. By prioritising job security and building a positive employer brand, organisations create a virtuous cycle that benefits both employees and the organisation.

Keen to learn more about strengthening your employer brand and promoting job security? Check out Randstad’s 2024 UK Report on Employer Brand Research. 

FAQs

what is the definition of job security?

Job security means having a job from which you are unlikely to be dismissed or made redundant. However, it can also mean the employee is likely to voluntarily stay in that role.

what is the definition of employer branding?

Employer brand can be considered as the public and stakeholders’ perception of the brand. It impacts every part of a business, including organic marketing, recruitment, and turnover. 

how to increase job security?

As an employer, job security can be increased by increasing reliability, effective resource and workforce management, and building a positive corporate culture.