Corporate Reputation and Recruitment – Why Employee Satisfaction Matters


Numerous studies continue to highlight just how important corporate reputation has become. A positive reputation doesn’t just help a company attract customers; it is an integral part of building a successful and competent team of employees. According to a 2015 study from Corporate Reputation Magazine, 67 percent of men and 86 percent of women would rather remain unemployed than accept a job working for a badly reputed company. Meanwhile, 92 percent of the people surveyed said they would leave their current job for a position with a company with a better reputation.

A Negative Reputation Costs Money

This can have direct consequences on the amount of money a company spends on payroll. The Harvard Business Review estimated that a company with 10,000 employees has to pay its workers an additional USD $7.6 million per year to compensate for having a bad reputation, based on 2014 figures from the US Bureau of Labor Statistics.

Even a business with ample funding will find that money can only do so much when it comes to attracting the most talented, experienced applicants. CR magazine found that only 67 percent of all respondents would be won over with an offer of more money. HBR said that only 28 percent of respondents would be tempted to join a company with a bad reputation even when offered a 10 percent salary increase.

How do Job Applicant’s Evaluate a Company’s Reputation?

While customers are likely to look at the quality of a company’s products and services in terms of value for money, potential employees are more interested in the work environment. According to HBR, the top three factors that leads to a negative brand image are lack of job security, inability to put together an efficient team and poor leadership. Also important are employee benefit programs and the opportunity for career advancement. Workers don’t want to be stuck in a dead-end job where they feel their talents are wasted even for a substantially higher salary.

Building a Better Corporate Reputation

Good corporate reputation starts with satisfied employees as well as satisfied customers. Sites like Glassdoor make it easy for current and former employees to share their experiences and many job applicants take these anonymous reviews more seriously than promises from a CEO or an HR recruiter.

Company executives need to look at how they’re being rated on employee review sites and take steps to address any consistent problems. Beyond this, however, it’s important to get a feel for what current and potential employees are looking for and build a company culture based around their needs.

Some companies have made successful use of opinion surveys as a means of recovery from reputation damage and as a template for recruitment branding. BP helped pull itself out of a slump after the Deepwater Horizon accident by asking potential employees to list the primary concerns they felt about working for a company compromised in this way. The result led to a dialogue that allowed the company to show it was ready to make significant changes, while at the same time letting applicants know there were positions available. Meanwhile, InMobi, an Indian advertising company, surveyed employees on what they valued most about their job and used the responses to generate a recruitment drive advertising the company’s innovative culture and practices.

Employees have the potential to be a corporation’s biggest asset when it comes to recruitment, but only if they feel they are valued and respected. Branding which relies on authentic employee experience is the most effective way of building a positive corporate reputation, one that will appeal to job applicants, and also to customers who continue to place a higher value on corporate social responsibility. This means working to create a positive company culture at all levels and then actively promoting it on social media pages, blogs and recruitment advertisements.

For more information about building a reputation that will attract a qualified, talented team of employees, visit ReputationDefender’s website or contact one of our reputation specialists today.

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Posted on 28 December 2017 by Tony McChrystal