A bad corporate reputation can have a significant impact on recruitment, according to a recent report. This is no surprise – would you choose to work for a company with a bad reputation?
Research conducted by Corporate Reputation Magazine (CR) found that, of the 1,000+ people who took part, 86% of women and 67% of men who were unemployed said they would not join a company with a bad reputation.
The study was conducted to gain an insight into how corporate responsibility, reputation and transparency can impact job decisions. It clearly shows the importance of a strong reputation when looking for the right candidate to fill a vacancy.
CR revealed the most important factors when it comes to losing your corporate reputation. Some of the most prominent included public exposure of a company’s shortcomings, lack of responsiveness and poor treatment of employees.
Only 67% of those surveyed said they would take a job with a company having a poor reputation for money. Meanwhile, a resounding 92% said they would leave their current role for a company with an excellent corporate reputation.
It seems that younger people, those aged 18 – 34, are least concerned with corporate reputation, with 77% saying they would join a company with a tarnished name.
Almost half (45%) of those aged 35-44 would leave for a company with an excellent reputation. In contrast, only 12% of the same group said they’d leave for one with a poor reputation.
The research indicates that if there is damage to your company’s reputation, it can significantly increase your recruitment and salary costs.
Contrastingly, if your company has a good reputation it is more likely to be considered a great place to work by potential candidates. This could allow your business to incur far lower costs when hiring these candidates and potentially develop greater employee retention.
Much of a company’s reputation nowadays comes from its online activity. Recent research has found that 98% of shoppers read product reviews before deciding what to buy. What people are saying about your company on review sites and forums is often the first impression people get of your business.
In particular, sites such as Glassdoor often prove pivotal for companies in the recruitment sector. The review site shows anonymous reviews, including those submitted by previous and current employees.
This year’s Edelman Trust Barometer shows that people are far more likely to trust anonymous reviewers than company CEOs, implying that Glassdoor is a reliable source for many potential employees and a wider audience.
Protecting your reputation
It’s therefore important to ensure that your company has a sound corporate reputation. If you intend to grow and improve your workforce, you’ll be significantly limited by a poor reputation, as this could increase your operating costs further along the line. Here, Igniyte indicates some of the key factors to consider when protecting your company’s reputation:
- Monitor what people say about you online: You need to find out what people are seeing when they search for your business online. If what they find is negative, you can look to remove some content if it’s defamatory or unsubstantiated.
Negative reviews could have a significant impact on your recruiting efforts. You should look to tackle this head on. This helps you understand why people are leaving negative reviews and look to defuse any negative preconceptions of your firm.
- Kill the problem at source: Sites such as Glassdoor concentrate on employees’ reviews. You need to actually look at how you’re treating staff to ensure there’s no underlying problem. Employees can sometimes be one of the main risks when it comes to reputation.
Promote the positive perks to working at your company and you’ll encourage positive energy around work. Good staff retention can be a major way to save cash. Also it helps maintain a consistent standard of service in the long-term. If it’s not customer service or staff quality which is the problem, then you must look to address any other issues.
- Implement an online reputation management plan: This covers everything from creating an internal social media policy to responding to reviews online.
Ensure you’re responding appropriately when coming up against questions, comments and reviews. For a comprehensive understanding, read Igniyte’s guide to building your company reputation online.