In response to questions from Chief Executives and HR leaders in the Middle East regarding the Return on Investment (ROI) and Key Performance Indicators (KPIs) for Employer Branding and EVP programs, the answer remains clear and impactful, especially considering the region's competitive job market and growing emphasis on talent retention. Here are three main business benefits you should expect from an EVP or employer brand program in the Middle East:
- Attracting Best-in-Class Talent:
- The Middle East, particularly in the UAE and Saudi Arabia, has seen significant growth in sectors like technology, construction, and finance. Employer branding plays a vital role in attracting top-tier talent, with 87% of professionals in the region stating they would consider a company's reputation when deciding on job offers.
- Reducing Unwanted Attrition:
- According to studies, employee turnover in the Middle East averages 20%, a costly burden for companies. A strong EVP helps in reducing unwanted attrition by improving employee engagement, resulting in fewer recruitment cycles and better retention of valuable talent.
- Enhancing Awareness of Core Values:
- In the Middle East, organizations increasingly focus on corporate social responsibility (CSR) and sustainable practices. Building an EVP around these values can not only boost brand image but also attract 70% of younger professionals who prioritize working for purpose-driven companies.
How to Determine ROI:
The ROI for EVP in the Middle East depends on your business goals:
- Long-term Employee Engagement and Retention:
In Saudi Arabia, the cost of replacing a skilled employee can reach up to 200% of their salary due to hiring costs, training, and lost productivity. Reducing attrition through a strong EVP can lead to significant savings, while more engaged employees can increase productivity by 10-15%, which directly boosts profitability.
- Immediate Recruitment Effectiveness:
With the Middle East becoming a global business hub, reducing time-to-hire is crucial. Companies with a compelling employer brand can shorten their hiring process by up to 50% and attract 50% more qualified candidates. The ability to quickly fill roles, especially in fast-moving sectors like technology, is invaluable.
Key Performance Indicators (KPIs):
Your KPIs will be aligned with your chosen strategy, and in the Middle East, these could include:
- Time to hire: In the region, shortening this metric is key, especially in competitive sectors.
- Employee retention rates: Reducing the region's high employee turnover can lead to substantial cost savings.
- Candidate quality: Increasing the percentage of high-quality candidates who consider and apply to your company.
- Employee engagement and productivity: Tracking increases in engagement scores and productivity levels as a result of stronger alignment with company values.
The EVP and ROI process is straightforward: knowing what’s important to your business and how quickly you need results helps define the strategy. In a dynamic market like the Middle East, a strong employer brand provides not only a competitive edge but also long-term sustainability in retaining and attracting the best talent.