Hiring can get costly if you have a bad employer brand.
Companies with poor reputations may need to shell out 10 percent more pay to woo candidates, costing organizations with 10,000 employees up to $7.6 million — more than $4,700 per hire, according to research recently published in the Harvard Business Review.
Even with extra pay, some candidates might not be convinced. Nearly half of the individuals surveyed said they’d completely rule out a job that involved the top three undesirable employer brand factors — job security concerns, dysfunctional teams and inadequate leadership; a 10 percent raise would only influence 28 percent of candidates.
For tips on correcting your company reputation — and ways to create a stronger employer brand — read the Harvard Business Review’s “A Bad Reputation Costs a Company More Than 10% More Per Hire” article.