Screening as a Competitive Advantage in Employer Branding

In Australia’s fiercely competitive job market, attracting the best talent is harder than ever. Right now, unemployment sits at just 4.1%, which is some of the lowest rates we have seen in over half a century. 

And, although job advertisement volumes have slightly declined from previous peaks, they remain significantly higher than pre-pandemic levels, continuing to give candidates considerable leverage when choosing their next employer

At the same time, recent data from the Australian HR Institute indicates employee turnover has stabilised at an average rate of 16%, though certain sectors, notably the public sector at 23%, continue to see elevated turnover. 

Additionally, more than half of Australian workers report plans to change roles within the next two years, suggesting ongoing challenges for organisations in retaining talent.

Given these conditions, companies looking to attract high-quality talent must clearly differentiate themselves as exceptional workplaces. 

One strategy that many companies overlook, but which can substantially improve your appeal to prospective employees, is thorough, strategic background screening.

Far from being just a compliance measure or administrative formality, effective screening processes demonstrate the high standards your organisation maintains. 

This article explains how background screening supports your employer branding, helps you attract superior candidates, and contributes directly to your business success.

Employer branding refers to how your company is perceived as a place to work. It goes beyond clever marketing slogans or flashy careers pages; it’s genuinely about the experience of working at your organisation.

 This encompasses your company culture, values, leadership style, career development opportunities, workplace environment, and benefits.

An employer brand also includes your Employee Value Proposition (EVP). Your EVP outlines the unique combination of rewards and benefits that employees receive in return for their skills, capabilities, and experience. It answers the question for potential candidates: “Why should I work here instead of somewhere else?”

An authentic, well-communicated employer brand clearly highlights what your organisation stands for. Companies with strong employer brands often have engaged employees who become enthusiastic ambassadors for their workplace. 

Their positive experiences translate into recommendations, referrals, and enhanced public perception, which draws high-quality talent to your door without excessive recruitment spending.

Importantly, employer branding isn’t isolated to hiring alone. It covers the entire employee lifecycle, including onboarding, performance management, retention strategies, and even how your organisation manages exits. 

Your brand is lived out daily in every interaction employees have within the workplace.

Let’s look at some clear, tangible advantages of strong employer branding. 

A powerful employer brand acts as a talent magnet. Recent research shows that 88% of job seekers now view employer branding as a critical factor when deciding to apply for a position.

Similarly, in Australia, companies with strong employer brands are seeing tangible benefits: they’re attracting up to 50% more qualified applicants, hiring twice as quickly, and significantly reducing their hiring costs

Your recruitment expenses drop significantly when you cultivate a strong employer brand. When your brand naturally attracts candidates who proactively seek you out, your reliance on costly advertisements and external recruiters decreases sharply. 

Companies with respected brands typically fill vacancies twice as quickly compared to those without clear employer branding strategies, dramatically cutting the time HR managers spend on lengthy hiring cycles.

Retaining your best people saves your organisation significant resources. 

Employees who feel proud of where they work show greater loyalty and lower turnover rates. 

Companies recognised for their strong employer brands enjoy retention rates around 50% higher than those with weaker brands. Given that replacing a departing employee costs between 50% and 200% of their annual salary, keeping turnover low directly impacts your profitability.

Engaged employees perform better, creating a productive, successful workplace. 

Positive brand experiences increase employee pride and commitment, turning them into active advocates. In fact, organisations with strong brands willingly recommend their employers to others, creating a powerful word-of-mouth recruitment channel.

Most Australian businesses understand background screening as a standard compliance measure. Typically, companies check references, confirm identities, and run national police checks to ensure candidates have clean backgrounds before joining the team. Certain industries, like education, childcare, finance, and healthcare, even require mandatory screening processes such as Working With Children Checks and professional licence verifications.

But background screening should not be seen simply as a compliance box-ticking exercise. Approached correctly, it’s a strategic tool that significantly benefits your company beyond risk management.

By verifying credentials, past employment, education, and criminal histories, employers can confidently identify candidates who align with the values and standards that your organisation upholds. 

Proper screening significantly reduces the risk of hiring someone who might negatively affect your company’s reputation or safety. Preventing poor hires saves considerable financial and productivity losses in the long run.

Background screening goes beyond merely keeping problematic applicants out. 

It actively enhances your company’s reputation, internally and externally. Integrating thoughtful screening processes into your employer branding strategy signals your company’s commitment to quality, safety, and integrity, setting your organisation apart in the eyes of prospective talent.

Properly implemented background checks allow you to confirm that a candidate actually possesses the skills, qualifications, and experience they claim. 

Hiring genuinely qualified individuals results in teams performing consistently at high levels, reinforcing your reputation as an exceptional place to work. It prevents the disruption caused by unsuitable hires, improving team morale and cohesion.

Poor hires are costly, too. Australian research indicates replacing a single bad hire can cost between 30% to 200% of their annual salary when factoring in lost productivity, rehiring, and retraining costs. Screening helps prevent these expensive mistakes.

Employees want to feel safe in their workplace, knowing colleagues have been thoroughly vetted. When your company actively screens for potential risks, employees gain confidence in your organisational leadership. 

Your investment in screening shows employees that their well-being is genuinely valued.

This not only creates internal trust but significantly boosts your external reputation. Customers and stakeholders trust companies known to rigorously screen employees, particularly in sectors such as healthcare, education, finance, or hospitality, where trust is paramount.

Employees directly represent your company. Hiring someone with undisclosed criminal records, falsified credentials, or hidden misconduct can significantly damage your reputation, potentially even resulting in legal liabilities or media scandals. 

Rigorous screening processes help avoid these scenarios, reflecting your commitment to integrity and professionalism. Companies that consistently screen employees effectively demonstrate they do not compromise on quality, strengthening public perception of your brand.

Candidates value transparency. Communicating clearly about your screening practices sets accurate expectations. Clearly explain to candidates why you conduct background checks, highlighting your commitment to providing a safe and reputable workplace. 

Efficient, technology-supported screening processes that integrate smoothly into recruitment reduce delays and improve candidate satisfaction. Candidates will appreciate that your hiring processes respect their time and clearly communicate expectations, reinforcing your employer brand positively.

Consider this quick comparison to visualise the impact of effective screening:

Making screening a strategic part of your employer branding requires thoughtful implementation. 

Here are practical strategies to ensure your background screening actively reinforces your organisation’s positive reputation and attractiveness as an employer:

Your background screening practices should reflect your organisation’s core values. For instance, if integrity and accountability are fundamental to your company culture, emphasise that thorough screening processes reinforce these values by ensuring all employees uphold the same standards. 

Leadership can actively champion screening as part of maintaining workplace excellence, highlighting its importance internally and externally.

Background screening shouldn’t be a generic, one-size-fits-all approach. Instead, determine relevant screening processes for specific roles based on industry, job level, and responsibilities. 

For example, financial roles might require credit history or fraud checks, while customer-facing roles could involve reference checks focusing on interpersonal skills. 

Tailored screening processes demonstrate fairness and professionalism, speeding up hiring by focusing only on necessary verifications.

Transparency around your screening procedures reassures candidates. Clearly inform applicants about your screening process early, ideally during the initial job ad or first interview. 

Explain why you perform checks and what specifically you’re verifying. This openness helps candidates understand and appreciate your commitment to quality and safety, reducing anxiety or confusion throughout recruitment.

Efficiency matters. Slow screening can frustrate candidates, increasing the chance they might withdraw from consideration. Modern technology solutions allow background screening to integrate seamlessly into your recruitment processes. 

Partnering with reputable providers who can deliver quick turnaround times on common checks helps your company appear organised and respectful of candidates’ time.

Internal processes should clearly specify roles and responsibilities in screening to avoid delays. Efficient processes keep candidates engaged and satisfied, reinforcing your positive employer brand.

Australian employers must adhere strictly to privacy, anti-discrimination, and other employment-related laws when conducting background checks. 

Obtain explicit candidate consent, restrict screening to relevant, job-specific checks, and carefully consider results to avoid discriminatory decisions. 

Clearly documented, fair procedures demonstrate your company’s commitment to compliance, fairness, and ethical hiring standards.

Instead of treating background checks as an isolated step, integrate them naturally into your recruitment journey. 

Friendly, professional communication at each stage ensures candidates understand and value this part of your hiring process. Providing FAQs or resource materials helps guide candidates, improving their overall experience and impression of your company.

By embedding thoughtful, relevant, and transparent background screening practices into your overall employer branding strategy, your organisation gains a clear competitive advantage in today’s highly competitive Australian talent marketplace.