The New Dictionary of Hiring

Preference Dividend

/PREF-RUHNS DIV-I-DEND/

NOUN

The Preference Dividend is the recurring hiring advantage gained when the right people already know, trust and prefer an employer.

MEANING

When people already understand why they'd choose you, recruiters spend less time manufacturing interest. Calls get returned. Conversations go somewhere. Offers have a better chance of being accepted. There may be less need for agencies or ever-higher salary offers.

‍

That's a business return from work done long before the vacancy opened. Count those effects, not just the number of people who saw a post. A good employer brand should improve the economics of hiring.

Defined by:
James Ellis,
Employer Brand Labs

Category:

Economics

Related Terms:

→

Preference Infrastructure

Share of Consideration

The New Dictionary of Hiring card: Preference Dividend, noun. The recurring hiring advantage gained when the right people already know, trust and prefer an employer. Abstract iridescent glass shape on a white background.

MAKE THE CHANGE

Instead of:

Measuring employer brand only through reach and impressions.

Ask:

What becomes cheaper, faster or easier because the right people already prefer us?

EXAMPLE

A hard-to-find candidate already knows the company, has seen credible stories about the work and respects its people. The first recruiting conversation starts with interest instead of suspicion.

HOW TO USE IT

Compare response rates, qualified interest, offer acceptance and agency reliance in talent markets where preference is stronger. Look for the savings and speed created before a requisition opened.

SAY IT TO LEADERSHIP

Some hires are easier because the people we want already have a reason to choose us. That's an operating advantage. We should be able to show where it pays off.

NOT TO BE CONFUSED WITH

Preference Infrastructure: Preference Infrastructure is what you build; the Preference Dividend is the return it pays. Preference Debt is what builds up when you don't invest.