How the Spotify model can help you improve your employer branding

How the Spotify model can help you improve your employer branding

To attract top talent in an ever-more competitive market, companies are increasingly looking for ways to develop strong employer branding.
  • How to attract top talent
  • Spotify: a success story
  • The benefits of the Spotify model

A lot has been said over the years about the importance of employer branding for company success. But what exactly is employer branding? Essentially, employer branding encompasses strategies that improve a company’s external and internal reputation. Companies with strong employer branding are much more likely to attract the best candidates and gain a competitive edge.

While salary and benefits are still among the most important factors that determine whether someone ultimately joins a company or not, a growing number of potential candidates are also taking company reputation into account when making the decision. In addition to making a company more attractive to new candidates, strong employer branding also helps retain existing employees. Research suggests that maintaining a good reputation can reduce employee turnover by as much as 28 per cent.

Spotify is an excellent example of how strong employer branding can benefit a company. As the world’s most popular audio-streaming service, this Swedish company continues to grow at a rapid pace. Over the last two years, it has doubled its staff and now employs nearly 7,000 people in 73 different countries.

How to attract top talent

In the past, filling an open position at any company was as simple as posting a job advertisement. Soon after, you would find yourself swamped with countless applications, allowing you to pick and choose from the most suitable candidates. However, those days are long gone. As the labour market becomes increasingly competitive, companies are finding it much harder to attract top talent. While this may not be the case anymore, there was a time when Spotify faced similar issues. So, what did the company do to stand apart from the competition and convince potential candidates that it was the best place for them to be? Once again, employer branding played a key role.

Spotify: a success story

Spotify’s success came as a result of several bold strategic decisions. For one, the company was among the first to embrace flexible working methods, implementing a work-from-anywhere strategy that allows employees to choose where they work. The company also took great care to create a safe and inclusive environment for everyone, with particular attention dedicated to employee mental health. Furthermore, it invented a new organisational structure in which employees are placed into multiple teams to work independently on individual features of a product. Team members are also given the freedom to choose the work framework that suits them best. Unlike traditional matrix structures, this model focuses on developing new, innovative products and services, rather than on the functions of individual departments.

The benefits of the Spotify model

For Spotify, the new model proved to be a great success, as evidenced by the 60,000 job applications it now receives every month. What’s more, the company is widely regarded as a great place to work. In the latest Randstad Employer Brand Research survey, it was rated Sweden’s most attractive employer. “It’s not about finding more people, it’s about finding the right people”, explains Jordan Deane, Spotify’s social media and digital storytelling specialist in employer branding. “People who are not only great at what they do but who also align with our core values”.

There are numerous reasons why the Spotify model is a good one for other companies to adopt as well. First, it enables employees to work independently and in a way that best suits their individual knowledge and skills. Furthermore, by giving employees the freedom to make their own decisions and choose how they organise themselves, this model promotes trust and transparency within a company culture. It also facilitates collaboration and experimentation, leading to a better overall product. By cutting down on bureaucracy, the model also saves a great deal of time. Not having to observe formal processes enables teams to work faster and with greater purpose. Finally, it makes working at a company more attractive to prospective employees. 

Closing thoughts

Attracting top talent in a highly competitive labour market can be a challenging task, but there are ways to make it easier. The first step is to develop strong employer branding. One of the most effective ways to do this is by adopting an innovative organisational structure such as the Spotify model, which will go a long way towards making a company stand out from the competition.

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