With employer shaming is on the rise, it's no surprise some companies with bad reputations are taking a more serious look at how current, past, and future employees perceive them.
However, a new study proves every company that recruits, hires, and retains employees is at risk of losing staggering amounts of money.
Like It Or Not, Your Reputation As An Employer Matters (A Lot!)
Turns out, failing to manage your company's reputation as an employer (known as an employment brand), can cost you thousands, even millions of dollars. Here's how...
According to LinkedIn's VP of Talent Solutions, Wade Burgess, the company used new research results, some publicly available data about salaries, and anecdotal evidence from friendly HR professionals about turnover rates. After crunching the numbers, here's what they learned:
- The cost of a bad reputation for a company with 10,000 employees could be as much as $7.6 million in additional wages. Based on the average US salary being $47,230 (according to BLS ), assumed annual turnover of 16.4%, and a minimum 10% per cent pay rise.
- Employers who fail to invest in their reputation could be paying up to an additional $4,723 per employee hired.
- Nearly half of US professionals would entirely rule out taking a job with a company that exhibited the top three negative employer brand factors, no matter what pay raise they were offered.
- Even a pay raise of 10% would only tempt 28% of us to sign on the dotted line.
Ouch! And, that doesn't even take into account things like employee turnover, lower productivity due to morale, or having a smaller talent pool to choose from.
On The Flipside, A Positive Employer Brand Can Make You Money
According to Burgess, when company possesses three or more of the traits displayed by a positive employment brand, they can realize some serious cost savings. Those five traits are:
Business Stability - job security
Career Mobility - more professional development opportunities
Career Advancement - the opportunity to work on a better team
Shared Beliefs - an organization with the same values as you
3rd-Party Credibility - being talked about positively by present or past employees
Which means, the sooner you invest in sharing your employment brand with the world, the sooner you can see the ROI.
3 Tips For Getting Your Employer Brand To Market
Burgess offers several detailed tips for employers on how to reveal and promote their employment brand successfully. Here's a quick summary:
1) Involve your employees. That third-party credibility starts with employees sharing their experiences as a way to generate referrals.
2) Use social media to dialog with talent. 70% of people following your on social media would be interested in working for you. Have a two-way conversation to draw them in.
3) Create content to tell your story. Videos, articles, pictures, etc. should be shared on an on-going basis as a way to turn passive candidates into active ones.
The Takeaway: Job Seekers Are Now "Job Shoppers"
Like it or not, the talent you seek are now consumers of your employment brand. If you don't offer a high-touch customer experience, LinkedIn has just proved your company will suffer.
As I always say, brand or BE branded. There's a reason online shows like, "The Job Shop," are becoming popular. Not investing in employment branding tells job shoppers one or more of the following:
- Your company isn't tech-savvy.
- There's nothing interesting or redeeming about working for you.
- You've got something to hide.
Don't be the employer nobody wants to work for. Share your employment brand with job shoppers to get the top talent you seek.