Employer of choice is a term used to indicate that the organization has extraordinary work environment, many applicants are willing to work for the employer and the employer's best talented employees are willing to stay with the employer, and the attrition rate remains low. When your company is Employer of choice, that means that your company is a great place to work, people desire to work for you, people choose to stay with you even when they are courted by other employers.
Being an Employer of choice has its own benefits, like
• Since employees are willing to stay with you, you will have low attrition rate
• With many talented people willing to join you, you will have best talent in your organization
• Having best talent in your organization itself is a competitive advantage
• Recruitment becomes easy as you can give more importance to choosing people than attracting them to apply for the job
• Less skilled people wont even apply for the job, thinking it is very difficult to get the job because of competition
• As the attrition rate is low, need for recruitment will also be low since you don’t need to fill the gaps created by left employees. High recruitment is needed only in cases of expansion or any other needs
• You need less number of employees working in the recruitment sector
• The expenses incurred for recruitment would be low. The cost per recruit would be very low
• As the quality of employees is very good, the quality of the services or the product will also be great. Which also increases customer satisfaction
• As the employees made a conscious choice in choosing the organization, they will be more motivated to work and the employee productivity would be high
• As the employee productivity and reduced recruitment costs directly affect bottom line, the organization will have greater profitability
• Since the employees themselves are willing to work, the job of managers and supervisors will become much easier
These are the reasons why most of the employers are trying to become employer of choice.