Employer Branding Wins the Talent War

Employer branding and happiness management are essential for retaining talent in today’s competitive job market, writes Luis M. Romero-Rodríguez.

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According to a recent Randstad report, on any given day in the first quarter of 2024, nearly 1.5 million workers in Spain were absent from their jobs. Over the past decade, the country’s absenteeism due to sick leave – often related to work-related situations such as anxiety, depression, stress, and burnout – has doubled. It’s a trend taking shape around the world. In the UK, for example, stress is a significant factor for short- and long-term workplace absences, with more than 76% of respondents to a CIPD survey reporting a stress-related absence in their organization last year. In the United States, mental health-related leaves of absence surged by a third in 2023 – and have increased by 300% since 2017 – according to ComPsych, which also found that women, particularly Millennials and Gen X, accounted for nearly 70% of these absences.

This global mental health crisis coincides with unprecedented workforce mobility. High staff turnover is becoming the norm across industries as transnational companies leverage remote work opportunities to recruit talent across borders. In this increasingly competitive environment, domestic firms must begin to prioritize employer branding and emotional rewards to attract and, above all, retain top talent.

Marcos was an outstanding student pursuing a double degree in Advertising and Business Administration in Spain, and complemented his schoolwork by studying Chinese and English and attending various conferences. When it came to choosing his internship, many large companies and agencies in Spain tried to entice him but in the end he chose a small German tech firm with a minimum footprint in Spain and a virtually non-existent public profile.

Many would have assumed his decision was based on a better financial offer, or the promise of a job at the end of his internship – the logical choice for more traditional job seekers. However, it was not that the company offered him more money (in fact, they did not) nor that there was the promise of a highly coveted job at the end of his degree. Instead, he was drawn by the positive feedback and ratings from the company’s employees on GlassDoor (which, by the way recently reached 63 million monthly unique visitors.) Rather than talking about responsibilities and working hours, Marcos’s internship interview focused on determining whether his experiences and aspirations aligned with the company’s values and he was given, prior to the interview, a kit for prospective candidates that detailed the benefits of working with the company including training opportunities, health and well-being options and work-environment perks.

Here we have the power of employer branding, a strategy an increasing number of organizations are employing to attract and retain top talent in an ecosystem in which innovation, creativity, and soft skills are needed and valued. It should come as no surprise that now, two years later, Marcos is still thriving at this company and has relocated to their headquarters in Germany.

Happiness management emerges as a philosophy that links employee well-being directly to improved performance.

Companies are, at their core, social organizations where people collaborate toward common goals. Success depends on strong internal communication, relationships, and what many call “the mood in the house” – the overall working atmosphere shaped by management styles and communication policies. Beyond financial rewards, organizations must address emotional compensation, labor expectations, and workplace conflicts while responding effectively to employee feedback.

A positive corporate culture that fosters well-being and belonging doesn’t just create harmony – it builds organizational reputation and attracts talent. This impact is increasingly measurable through platforms like GlassDoor and corporate reputation monitors and rankings, such as Global Rep Track that weigh employee ratings in their assessments.

In today’s economy, employer branding has evolved from a nice-to-have into a strategic imperative for attracting and retaining talent. This is especially crucial as organizations increasingly value innovation, adaptability, and the kind of emotional intelligence rarely taught in formal education. This is where happiness management emerges as a philosophy that links job satisfaction and employee well-being directly to improved performance, productivity, and teamwork.

In today’s economy, employer branding has evolved from a nice-to-have into a strategic imperative for attracting and retaining talent. According to Natalie Allen and John Meyer of the University of Western Ontario, effective organizational commitment is the emotional force that motivates workers to remain proactive and loyal to an organization through shared values, goals, and culture. My research with Rafael Ravina-Ripoll of the University of Cadiz and Eduardo Ahumada-Tello of the Autonomous University of Baja California shows that this emotional commitment is the single strongest predictor of workplace happiness. This is especially crucial as organizations now increasingly value innovation, flexibility, and the kind of emotional intelligence rarely taught in formal education. Here, happiness management emerges as a philosophy that links employee well-being directly to improved performance, productivity, and teamwork.

Yet how can we align conventional management philosophies with happiness management through internal communication and human resource strategies? A recent study provides a roadmap for professionals and communication directors based on three primary objectives for implementing happiness management.

Yet how can we align conventional management philosophies with happiness management through internal communication and human resource strategies? My coauthor Barbara Castillo-Abdul of the University of Design, Innovation and Technology, and I provide a roadmap for professionals and communication directors, built around three core objectives for implementing happiness management.

The first is to proactively cultivate a healthy work environment that is conducive to well-being. This in turn focuses on three elements: the attitudes of leaders, employers and supervisors; the working atmosphere and internal communication policies, and the organization’s structure. The second objective, shaping a positive organizational identity in employees, takes in three additional dimensions: informal communication between colleagues, corporate culture and values, and the organization’s relationship with its members. The third and final objective centers on the employee’s emotional experience at work, consisting of communication platforms and media, recognition and feedback, and employee attitudes.

It’s important for HR directors and communication professionals to convert abstract concepts like “workplace well-being” and “employee engagement” into actionable strategies for the company and for employees. From leadership attitudes to communication platforms, from corporate culture to feedback systems, each element plays a vital role in building an environment where workers are productive, yes, but also happy and engaged.

Today’s job market is competitive and increasingly mobile. Companies, therefore, cannot afford to overlook the importance of employer branding and happiness management. As Marcos’s story shows, employees today are drawn not just by financial incentives but by workplaces that offer personal alignment, well-being, and a sense of belonging. Companies that embrace this approach are positioning themselves as leaders in the future of work, setting a new standard for sustainable, people-centered business practices. In an era where employees increasingly prioritize purpose alongside traditional benefits, happiness management isn’t just good practice – it’s a business imperative.

This shift addresses a critical need in today’s workforce for emotional engagement, reducing stress and turnover while fostering employee loyalty. Organizations that commit to developing positive cultures, with internal communications that emphasize shared values and well-being, lay the groundwork for long-term growth and competitive advantage.

Employer branding and happiness management, if done properly, have the potential to generate fundamental social change by redefining work-life balance and improving overall quality of life. These approaches not only attract talent, but also keep people engaged, motivated, and satisfied. By investing in employees’ emotional health and workplace happiness, businesses help to create a better society in which people feel valued and empowered, resulting in a more resourceful and compassionate workforce. This redefined approach to work has the potential to set a new norm for corporate responsibility, fostering a society in which firms emphasize people and purpose, ultimately benefiting lives outside of the workplace.

 

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