Got a bad reputation? It's going to cost you...

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Got a bad reputation? It's going to cost you...

More than half of Australian workers would entirely rule out taking a job with a company if its reputation was poor, no matter what the potential pay rise.

Employers failing to invest in their reputation among potential candidates – their employer brand –  could be paying an additional $8015 per employee hired compared to companies with a good talent brand.

The costs could add up to an additional wage bill of about $128,000 for new hires per year for a company of 100 employees.
 
More than half (51 per cent) of Australian workers would entirely rule out taking a job with a company if its reputation was poor, no matter what the potential pay rise. Even a pay rise of more than 10 per cent would only tempt 24 per cent of professionals to join the organisation. 
 
LinkedIn’s Winning Talent research, a study into the factors influencing people’s choices about where they want to work, found the top factors most likely to put candidates off working for a potential employer were:
  • concerns around job losses/job security (57 per cent)
  • working with a dysfunctional/poorly performing team (53 per cent)
  • a reputation of poor leadership from senior managers (46 per cent)
  • an organisation that is talked about negatively by the people who work there or who have worked there (41 per cent)
  • an organisation that has a poor reputation among people working in your industry (40 per cent)
Jason Laufer, director of talent solutions for Australia/New Zealand at LinkedIn, said: "LinkedIn’s Winning Talent research reveals the impact that a poor reputation as an employer can have on a company’s bottom line. In addition to simply attracting better employees, a strong employer brand helps employee retention and engagement, so the true value is even greater than this data suggests.

"Finding the best people remains the number one driving force in the success of any business, so business leaders, recruiters and marketers should take note." 

Why workers take a new job


The factors that were most likely to convince Australian workers to accept a job offer from a new company were: 
  • increased job security (appealing to 47 per cent)
  • more professional development opportunities (34 per cent)
  • the opportunity to work with a better team (32 per cent)
  • an organisation that shares more of the same values as you (29per cent)
  • an organisation that is talked about positively by people who work there or have worked there (27 per cent) 
* The cost to companies was calculated based on an average Australian salary of $80,158 and assumed employee turnover of 16per cent per cent annually.
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