Today, it's not only your product or service that will boost your sales, it's also your employer brand. 

Shein, Boohoo, Twitter, Amazon, Orange... Do these companies have a good employer brand for you? Have you ever wondered whether you should buy from competing companies that put more emphasis on their employees? Today, consumers are questioning the impact they can have through their consumption choices. Employer brand is becoming an essential criterion in this decision, influencing for better or worse, the reputation, awareness and performance of the company. In response, 'A happy employee makes a happy customer' has become the new motto of committed companies and its effectiveness is reflected in their sales. Employer branding is now seen as a growth lever for companies and is no longer a cost but an investment.

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Shein's employer brand and the fall of its reputation

What would you think of someone who mistreats those around them? Would you encourage it? Do you think this opinion would be different if that person was a company?

96% of companies say that employer brand and reputation can impact revenue. You show the relationship you create with employees - it humanizes you, gives you an identity. However, of that 96%, only 44% monitor that impact. Shein was not among them and had to pay the consequences.  

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In November 2021, the NGO Public Eye shook up the brand. The whole world discovered the working conditions without defined hours, 18-hour days, no day off, paid 3 cents per garment produced. Thousands of articles, tweets, posts, testimonies, etc... followed and Shein became 'the brand of shame' internationally. With such a scandal, sales also suffered. Their sales growth has indeed dropped from 250% in 2020 to 60% in 2021 and this trend continues in 2022.

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Hyundai, an employer brand that rolls

On the other hand, we can find Hyundai, ranked 35th in terms of global brand value for the second year in a row and in the top 40 for the last 8 years, their progress does not go unnoticed.

The automotive brand emphasizes that they have put a focus on their environmental, social and governance (ESG) initiatives and its importance to achieve sales growth.  Indeed, we can think of:

• Their transition to electric vehicle production ;
• Their numerous partnerships with charities and humanitarian organizations (Habitat for Humanity Orange County, ShareOurselves, OC AIDS Walk, LA LGBT Center, Earth Day Clean Up...) ;
• Their inclusion in the Dow Jones Sustainability Index (DJSI) in recognition of their sustainability performance;
• Their growing investments in environmental protection, reaching a sum of 7225 billion South Korean Won, about 5.4 billion euros.  

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And many more... 

By engaging its employees and its brand, Hyundai is showing itself to be an impactful company, and this does not come without benefits. 

In 2021, it won the Best Employer Brand Award in Engineering and Manufacturing and by the end of 2022, its overall value growth rate was #1 in its market. The implication is that its employer brand has become a true differentiator among its competitors and a trusted resource among its employees and customers. 

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Employer brand and sales: a powerful combination

As stated in a Harvard Business Review article, 70% to 80% of a company's value is defined by intangible assets, including consumer perception of your brand. Without a good reputation, their opinion of your brand will plummet along with your sales. 

As in the cases of Shein and Hyundai, a good employer brand that is well communicated is crucial to generating good sales.

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