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The State of Employer Branding A global report on the hottest topic in talent acquisition

State of employer brand

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Page 1: State of employer brand

The State of Employer Branding A global report on the hottest topic in talent acquisition

Page 2: State of employer brand

Introduction & Big Picture Findings 03

Executive Summary 05

Global Results 10

Conclusion 21

Appendix I: Results by Country 23

Appendix II: Results by Industry 30

Appendix III: Results by Company Size 31

Contents

Page 3: State of employer brand

Employer branding is the new black. Articles, white papers, and

conference panels are popping up everywhere while discussions

and debates take place daily in the hallways, conference rooms,

and executive suites of companies around the world. Strong

competition for knowledge workers in particular and the

proliferation of social media have augmented the importance of

employer reputations in acquiring talent, particularly for the 80

percent of the labor market who are passive candidates1. Whether

or not a company is considered a great place to work can make all

the difference in attracting and retaining this top talent.

The hype isn’t just fueled by large corporations or household name

brands: employer branding is a hot topic among companies with

100 employees or 100,000, from Canada to India and everywhere

in between, and regardless of industry. So what’s really going on,

and what are companies doing about it? We took a closer look at

employer branding as part of our third annual Global Recruiting

Trends Survey. Our large and diverse sample of over 3,000 talent

acquisition leaders means our results are packed with powerful

data points and interesting insights for just about everyone.

Introduction

Page 4: State of employer brand

Employer branding is seen as important everywhere; 83

percent of global recruiting leaders agree it’s a critical

driver of their ability to hire top talent.

Over half (51 percent) of companies have increased their

employer brand investment in 2012 and a further 40

percent have maintained their spend.

Talent Acquisition is often at the helm, leading or co-

leading employer branding 61 percent of the time.

While career sites are viewed as a most effective employer

branding vehicle, viral channels – including word of mouth

and online professional networks – play a significant role in

building a company’s talent brand.

Despite the importance of employer brand, almost half do

not have a proactive strategy, and only one-third say they

regularly measure employer brand in a quantifiable way.

The Big Picture

4

Page 5: State of employer brand

Executive Summary TA leaders know employer branding is important and are investing more –

but strategy, listening and metrics are often missing

1. AWARENESS 2. INVESTMENT &

ORGANIZATION

3. DELIVERY 4. STRATEGY &

MEASUREMENT

83% agree that an

employer brand

significantly impacts their

ability to hire top talent,

and 69% consider it a top

priority for their

organization.

The #1 action that TA

leaders are afraid

competitors will do is invest

in employer brand, and

lack of employer brand

awareness is considered

one of the top three

obstacles in recruiting.

Globally, upgrading

employer branding is

considered the second

most essential and long-

term trend in the industry.

A whopping 91% of

companies are investing

more or the same in 2012

compared to 2011,

primarily due to a greater

awareness about employer

branding’s impact.

While the increase is a

step in the right direction, it

hasn’t been enough to

date: only 39% of TA

leaders report that they

have the resources needed

for success.

61% of TA leaders have a

primary or shared

employer brand

responsibility with

Marketing or Corporate

Communications, with co-

ownership (39%) the most

common structure.

78% of TA leaders view

their company website as

their most effective channel

for employer brand.

Of the remaining highly

effective channels, only

one – traditional job boards

– is fully controlled by the

company.

Instead, employer brand is

coming to life in channels

that companies influence

without controlling: word of

mouth, social professional

networks and general

social media.

These channels have the

benefit of touching passive

candidates in ways that

company-controlled

channels usually do not.

Only 54% of respondents

have a proactive employer

brand strategy.

53% claim to have a good

understanding of how their

employer brand varies by

different talent populations.

Most companies are not

listening to the appropriate

stakeholder mix: only 37%

regularly survey new hires

and even fewer (32%)

regularly survey

candidates.

Measurement is the key

area of weakness. Only

38% measure their brand

relative to the competition,

and just 35% prioritize

their spend to shore up

key weaknesses.

TA leaders say employer

branding is key to hiring

success and an important

long-term trend.

Companies are starting to

invest more in employer

branding, with TA leaders

often directly responsible.

Effective employer brand

delivery occurs as much

through viral channels as via

company-controlled ones..

Many companies are not

adopting a strategic

approach and even fewer

are measuring for success.

Page 6: State of employer brand

Methodology

All respondents:

work in a corporate HR/recruiting setting

represent an even mix of small, midsize and large enterprises

have at least some budget authority

focus solely or primarily on recruitment

Surveyed 3,028 recruiting professionals globally with a LinkedIn profile

UNITED STATES 755 CANADA 299 BRAZIL 226 SPAIN 100 UK 334 ITALY 99 GERMANY 97 NETHERLANDS 226 NORDICS 113 INDIA 255 AUSTRALIA 280

6

Respondents by country:

Page 7: State of employer brand

High awareness of employer brand’s impact

Page 8: State of employer brand

Talent acquisition (TA) leaders are highly aware that employer branding is

critical to hiring success

83% Agree that employer brand

has significant impact on

ability to hire great talent

8

Page 9: State of employer brand

1. Utilizing social and professional networks

2. Finding better ways to source passive candidates

3. Upgrading employer branding

< 1,000 Employees

> 1,000 Employees

9

Prioritization of employer brand

(by company size)

69% Agree that employer

brand is a top priority

for their organization

67%

70%

67%

78%

< 500 Employees

501-1,000 Employees

1,000-10,000 Employees

> 10,000 Employees

Top 3 long-term trends in recruiting

professionals (by company size)

Large organizations lead the way in prioritizing

employer brand, but smaller companies are catching on

1. Utilizing social and professional networks

2. Upgrading employer branding

3. Finding better ways to source passive candidates

Page 10: State of employer brand

Employer branding is a top priority for companies worldwide

TA leaders who agree employer brand is a top priority (by country)

Significantly more INDIAN

organizations prioritize employer brand

Significantly fewer GERMAN

organizations prioritize employer brand

10

77% 75% 75% 74% 73% 71% 70% 69% 68% 64% 61% 47%

GLOBAL AVERAGE

69%

IND

IA

UN

ITE

D K

ING

DO

M

CA

NA

DA

BR

AZ

IL

AU

ST

RA

LIA

FR

AN

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ITA

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SP

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NO

RD

ICS

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TH

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LA

ND

S

GE

RM

AN

Y

Page 11: State of employer brand

1 Competition 1 Invest in their employer brand 1 Utilizing social and professional

networks

2 Compensation 2 Build and nurture strong talent

pools or pipelines 2 Upgrading employer branding

3 Lack of awareness or interest

in our employer brand 3

Learn to use social networking and

social media more effectively 3

Finding better ways to source

passive candidates

4 Location 4 Improve their candidate experience 4 Boosting referral programs

5 Recruiting team too small 5 Improve their referral program 5 Training recruiters and hiring

managers

6 Recruiting team doesn't have the

right tools/systems 6

Further invest in their existing

recruiting tools 6 Recruiting globally

7 Lack of awareness that we're

hiring 7 Invest in new recruiting tools 7 Optimizing your career site

8 Inability to effectively use data to

improve our approach 8

Hire recruiters to strengthen their

team 8

Measuring quality of hire more

consistently

9 Quality of talent currently at our

company 9

Negotiate better pricing with

vendors 9 Reducing spend on staffing firms

10 Company performance 10 Improve ways to track quality of

hire 10

Using CRM technology to manage

talent leads

In fact, employer branding rises to the top, regardless of the question

11

Top choices to attracting

the best talent

Biggest concern is that

competitors will… Top long-lasting trends

Page 12: State of employer brand

Investing more, with Talent Acquisition often leading

Page 13: State of employer brand

Employer brand investment is rising in 2012, primarily due to a greater

awareness of its impact

91% Companies that are spending

more or the same on employer

brand in 2012 compared to 2011

51% 40% 9% Spending More Spending Same Spending Less

1. Increased belief in the impact of employer brand 49%

2. Need to raise general awareness 48%

3. Difficulty recruiting quality candidates 47%

4. Increased competition 37%

5. Difficulty recruiting candidates in specific sectors 32%

Why spend more on employer brand?

13

Page 14: State of employer brand

TA leaders are organizing for success by partnering with Marketing and

Communications

39% 22% TA shares ownership TA has primary

ownership

15% TA has no

ownership

14% TA is a

contributor

10% Company doesn’t

think about EB

Most common departments that own employer

brand outside of Talent Acquisition

1. Marketing

2. Corporate Communications

Who owns employer brand?

14

Page 15: State of employer brand

Viral channels thought to be highly effective

for employer brand delivery

Page 16: State of employer brand

While websites are seen as most effective, viral channels play important

role in promoting employer brand

Five channels seen as most effective to promote employer brand

78% 56% 46%

38% 34%

Company website Word of mouth Social professional

networks

Social media Traditional job boards 16

Page 17: State of employer brand

Almost half already find social professional networks highly effective for

employer branding

58% 57% 53% 48% 47% 47% 45% 44% 43% 40% 37% 35%

Organizations that find social professional networks highly effective for promoting employer brand (by country)

FR

AN

CE

CA

NA

DA

IND

IA

NE

TH

ER

LA

ND

S

UN

ITE

D S

TA

TE

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UN

ITE

D K

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DO

M

AU

ST

RA

LIA

ITA

LY

*

SP

AIN

BR

AZ

IL

NO

RD

ICS

GE

RM

AN

Y*

More organizations in FRANCE and

CANADA consider social professional

networks to be highly effective

Fewer organizations in GERMANY and the

NORDICS consider social professional

networks to be highly effective

17 * Low base size (< 80 respondents)

GLOBAL AVERAGE

46%

Page 18: State of employer brand

Disconnect between awareness and action

Page 19: State of employer brand

Despite recognizing its power, many companies don’t take a strategic approach

to employer brand

Recognize employer brand impact

Have a proactive employer brand strategy

Understand employer brand strength across different populations

Feel they have the resources to succeed

Measure employer brand strength relative to competitors for talent

Regularly survey new hires to understand employer brand perceptions

Prioritize spend on audiences where employer brand relatively weak

Regularly survey candidates to understand perceptions

54%

53%

39%

38%

37%

35%

32%

83%

19

Page 20: State of employer brand

Not many say they regularly measure their employer brand in a quantifiable way

20

only one out of three

Page 21: State of employer brand

We know that talent acquisition leaders around the world understand the importance of

employer branding. They're increasing investment—even at a time when doing more with

less is the norm—because they see it as a critical foundation for attracting the best hires.

However, two-thirds of talent acquisition leaders today admit that they don't consistently

and quantifiably measure the health of their employer brands, and almost half say they

lack a proactive strategy. Management can't succeed without measurement and focus.

In the end, the key opportunity isn't simply to improve awareness of your company as a

great place to work, it's to upgrade your strategy: by listening to key audiences and

observing how they interact with your employer brand; by assessing how you fare versus

your competitors for talent; and by investing differentially in engaging candidate

populations where you have the most to gain.

This is particularly true in an era in which social platforms have changed the game for

where and how identities – both corporate and personal – form and evolve. There was a

time when your employer brand consisted of the messaging that your company delivered

out into the marketplace and periodically refreshed. Today your messaging is being

consumed, supplemented and amplified – or questioned aloud – in real time based on

talent’s actual experience with your brand across multiple touch points, including social

platforms where prospective talent engages with you on a daily basis. And what often

rises to the top now, louder and clearer than your own messaging, is your talent brand –

your employer brand as seen through the social lens, incorporating what prospective

talent thinks, feels and says about your company as a place to work.

The good news is that, thanks to the reams of Big Data that are generated through billions

of interactions on social platforms like LinkedIn, it’s easier than previously to assess how

you’re really doing . And the companies that effectively assess their talent brands will be

able to prioritize spend, shore up areas of weakness, build out competitive advantage,

and ultimately engage target talent to greatest effect.

Conclusion

21

Page 22: State of employer brand

“ Today your messaging is being consumed,

supplemented and amplified – or

questioned aloud – in real time based on

talent’s actual experience with your brand

across multiple touch points.

Page 23: State of employer brand

Appendix

Page 24: State of employer brand

Appendix I: Findings by Country

AMERICAS EMEA ASIA PACIFIC

45% of Brazilian TA leaders

measure their brands (vs.

33% globally,), which is likely

why they claim to understand

employer brand strength

across populations more often

(67% vs. 53% globally).

Canada ranks second in citing

effectiveness of professional

social networks for employer

branding (57% vs. 46%

overall), otherwise they are in

the middle of the pack in

investment and organization.

US TA leaders report above

average employer brand

investment, yet they are

significantly below average on

measurement (21% survey

candidates vs. 32% overall;

31% survey new hires vs.

37% overall).

France leads the way in gauging stakeholders: surveying new hires (46%) and candidates (45%) are well above the global averages (37% and 32%, respectively).

UK Employer brand prioritization is well above average, as is investment, yet UK TA leaders are average or worse in measuring for success.

Germany has the fewest percentage of TA leaders who consider employer branding a top priority (47% vs. 69% globally); TA leads most often (66% co-own or own employer brand vs. 61% globally).

Spanish TA leaders set a high bar for other countries in calling the employer brand shots, with 72% of TA leaders owning or co-owning employer brand, far above the 61% global average.

In Italy, acknowledgment of employer brand significance is on par with other countries, yet its investment and measurement tend to be well behind most other countries.

Netherlands TA leaders are well below average in terms of investing in employer brand and TA owning it, yet they are more likely to measure employer brand and use viral channels such as online professional networks effectively.

TA leaders in the Nordics lag on most dimensions, except in measuring the health of employer brand (42% vs. 33% globally).

India is the sole country that

ranks consistently well above

average on employer brand

prioritization, strategic action,

and measurement.

Australia is investing in

employer branding more

aggressively than any other

region (61% citing spend

increase versus 51% globally),

yet on all measurement

metrics, Australia is either

average or below average

compared to other countries.

Employer branding winner

across the board: INDIA

24

Page 25: State of employer brand

Australia and the emerging markets lead the way in doubling down on

employer brand

61% 58% 57% 57% 56% 53% 53% 48% 45% 45% 43% 38%

Organizations spending more on employer brand in 2012 vs. 2011 (by country)

AU

ST

RA

LIA

IND

IA

BR

AZ

IL

UN

ITE

D K

ING

DO

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UN

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D S

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TE

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FR

AN

CE

CA

NA

DA

GE

RM

AN

Y*

NO

RD

ICS

SP

AIN

*

NE

TH

ER

LA

ND

S

ITA

LY

*

Organizations in AUSTRALIA and

INDIA increasing spend more

often than the global average

Organizations in ITALY and the

NETHERLANDS increasing spend

less often than the global average

25 * Low base size (< 80 respondents)

GLOBAL AVERAGE

51%

Page 26: State of employer brand

26

72% 70% 66% 65% 61% 59% 58% 57% 56% 56% 56% 51%

SP

AIN

IND

IA

GE

RM

AN

Y

BR

AZ

IL

AU

ST

RA

LIA

CA

NA

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TA leaders most empowered to

drive employer brand in SPAIN

and INDIA

TA leaders significantly less likely to

own or co-own employer brand in the

UK and the NETHERLANDS

There is significant geographic variation in Talent Acquisition’s role in

employer branding

Organizations where TA has total or shared control of employer brand (by country)

GLOBAL AVERAGE

61%

Page 27: State of employer brand

27

67% 62% 57% 54% 54% 52% 52% 51% 50% 46% 44% 41%

BR

AZ

IL

IND

IA

NE

TH

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LA

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FR

AN

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NA

DA

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ITA

LY

INDIA and BRAZIL significantly more likely to

understand their employer brand strength

across different talent populations

Emerging markets lead the pack with the most understanding of employer

brand strength by population

Percentage understanding employer brand strength across different talent populations (by country)

GLOBAL AVERAGE

53%

Page 28: State of employer brand

28

50% 45% 42% 35% 33% 32% 32% 30% 29% 23% 22% 20%

IND

IA

BR

AZ

IL

NO

RD

ICS

CA

NA

DA

AU

ST

RA

LIA

NE

TH

ER

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S

UN

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D K

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FR

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SP

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RM

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INDIA and BRAZIL more likely to

consistently measure employer brand

There is wide geographic variation in measuring the health of employer brands

Quantifiable measurement of employer brand (by country)

GERMANY, ITALY, and SPAIN less likely

to consistently measure employer brand

GLOBAL AVERAGE

33%

Page 29: State of employer brand

Most don’t survey new hires to understand employer brand perceptions;

wide geographic differences

29

52% 46% 45% 39% 36% 35% 34% 34% 33% 31% 30% 23%

IND

IA

FR

AN

CE

GE

RM

AN

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BR

AZ

IL

AU

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More organizations survey new

hires in INDIA and FRANCE

Fewer organizations survey new hires

in the NORDICS and ITALY

Organizations that regularly survey new hires to understand brand position (by country)

GLOBAL AVERAGE

37%

Page 30: State of employer brand

Even fewer organizations survey candidates; again, wide geographic variance

30

More organizations survey new

hires in FRANCE and INDIA

Fewer organizations survey candidates in

AUSTRALIA and the UNITED STATES

Organizations that regularly survey candidates to understand brand position (by country)

45% 45% 39% 36% 34% 32% 31% 28% 26% 25% 25% 21%

FR

AN

CE

IND

IA

GE

RM

AN

Y

SP

AIN

BR

AZ

IL

NO

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ITA

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NE

TH

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D K

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CA

NA

DA

AU

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S

GLOBAL AVERAGE

32%

Page 31: State of employer brand

Appendix II: Findings by Industry

CONSUMER

GOODS

Consumer Goods TA

leaders are ahead of the

curve, with 72% having

primary or shared

ownership of employer

brand compared to 61%

overall. They are also more

likely to feel they have the

resources needed for

success (48% vs. 39%

overall).

Finance appears to be

one of the more strategic

industries as more

respondents (61% vs. 53%

overall) report a good

understanding of their

employer brand across

talent populations, likely due

to better measurement: 46%

of Finance TA leaders

quantifiably measure their

employer brands versus

33% overall.

Marketing/PR/Consulting

are much more likely to

have a proactive employer

brand strategy (64% vs.

54% overall), and more

likely to leverage online

professional channels such

as LinkedIn (64% of this

group cite effectiveness, vs.

46% overall).

Manufacturing TA leaders

are just as aware of employer

branding’s importance as

other industries, yet they are

much less likely to make it a

top organization priority (59%

vs. 69% overall).

High-tech TA leaders

(59% vs. 46% overall) are

also more likely to use

newer communication

channels such as online

professional networks and

social media, and they are

above average when it

comes to regularly

surveying new hires (41%

vs. 37% overall).

Non-profit TA leaders cite

the effectiveness of social

media more than other

industries (47% vs. 38%

overall), but they are not yet

capitalizing on other low-

cost ‘passive candidate’

channels such as online

professional networks (34%

vs. 46% overall).

More than all other

industries, Medical and

Healthcare TA leaders have

increased investment in

employer brand due to

higher awareness of its

impact. Yet, the industry is

below average in surveying

new hires (29% vs. 37%

overall) and surveying

candidates (24% vs. 32%

overall).

Education TA leaders

consider investing in employer

branding to be the #1

competitive threat, more than

any other industry. At the same

time, they tend to over-rely on

company websites (84%) to

communicate their brands,

resulting in missed

opportunities to engage with

passive talent. Education TA

leaders in particular have not

yet fully realized the potential of

professional and social

networks.

MARKETING/PR/

CONSULTING HIGH TECH MANUFACTURING

FINANCE MEDICAL/

HEALTHCARE NON-PROFIT

EDUCATION

31

Page 32: State of employer brand

Appendix III: Findings by Company Size

Employer brand is more

top of mind as

organizations grow in size;

78% of TA leaders at large

companies consider

employer branding a top

priority (vs. 67% for the

smallest companies and

69% overall).

TA leaders at smaller

companies recognize

employer brand’s long-term

importance; they rank it

one of the most essential

and long-term trends in the

industry, even higher than

TA leaders at larger

companies.

TA leaders are larger

companies are more

involved in employer

brand, with 67% owning or

co-owning it compared to

51% for the smallest

companies and 61%

overall.

Those from smaller

companies report investing

more in 2012 due to the an

increase in hiring, while

those from larger

companies are investing

more due to a greater

awareness of employer

branding’s impact.

54% of larger companies

consider channels such as

LinkedIn effective (vs. 47%

smaller) and 47% cite

social media as effective

(vs. 38% smaller).

Smaller companies still

tend to rely more heavily

on word-of-mouth (62%

small vs. 49% large), likely

due to more limited

resources.

Larger companies are

much likelier to have an

employer branding

strategy (68% vs. 54%

overall and 49% for small

companies.)

Larger companies (51%)

regularly measure

employer brand relative to

competitors, significantly

more than smaller

companies do (34%).

Larger companies (45%)

prioritize employer brand

spend on audiences where

their brand is weaker,

significantly more than

smaller companies do

(29%).

Large companies are ahead, but

SMALLER ORGANIZATIONS

are not far behind

1. AWARENESS 2. INVESTMENT &

ORGANIZATION

3. DELIVERY 4. STRATEGY &

MEASUREMENT

32

Page 33: State of employer brand

The third annual LinkedIn Global Recruiting Trends Survey

was conducted online between May 2012 and July 2012.

Recruiting professionals with a LinkedIn profile who opted in

to participate in research studies were sent an email

invitation to participate. In order to qualify, respondents had

to focus solely or primarily on recruitment in a corporate

HR/recruiting setting, and have at least some budget

authority. Respondents represented an even mix of small,

mid-size and large companies. 3,028 corporate respondents

qualified and successfully completed the questionnaire.

Global statistics are reported as un-weighted averages of

corporate recruiter responses from the following countries:

Australia, Brazil, Canada, France, Germany, India, Italy,

Netherlands, Nordics (Norway, Sweden, Denmark, Finland),

Spain, UK, & US.

For more information about this survey, please email:

[email protected]

1. 2011 research on job-seeking behavior. For more

details see lnkd.in/jobseeker-research

Founded in 2003, LinkedIn connects the world’s

professionals to make them more productive and successful.

With more than 175 million members worldwide, including

executives from every Fortune 500 company, LinkedIn is the

world’s largest professional network on the Internet. LinkedIn

offers a full range of solutions to help organizations of all

sizes find, engage and attract the best talent. 85 percent of

the Fortune 100 use LinkedIn Talent Solutions.

For employer branding best practices from industry leaders,

go to: talent.linkedin.com/employer-brand

For a new way to measure your talent brand, see

talent.linkedin.com/talentbrandindex

To stay up to date on the latest research and insights from

LinkedIn, follow @hireonlinkedin on Twitter and subscribe

to our blog: talent.linkedin.com/blog

About This Survey About LinkedIn

Additional Resources

33

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