Poor employer branding could reduce potential job candidates by half, a new study has suggested.
Research from LinkedIn found that a company’s reputation was more important to jobseekers than pay or benefits when it came to deciding on a job, with 53 per cent admitting they would turn down an offer from an organisation known for poor job security, dysfunctional teams or inadequate leadership.
An unsatisfactory reference from existing or previous staff along with a weak reputation among peers were also key reasons for jobseekers to decline offers.
LinkedIN explained that a poor reputation could be costing employers money while restricting their choice of staff, with the study showing that businesses that do not invest in their employer brand may pay an extra £2,270 per hire in comparison to organisations with a good reputation.
Businesses with good reputations could also add up to £4,080,000 to the yearly wage bill for an organisation with 10,000 employees.
Chris Brown, director of LI Talent Solutions UK, said: “Our report shows that a poor employer brand or reputation does not just make it harder to find the best staff, but also impacts 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.”
Managers aiming to appeal to the best workers should revisit the benefits they provide to staff and analyse their effectiveness.
Mr Brown stressed that companies need to promote the benefits and attractions of their company more effectively in order to boost recruitment, resourcing and talent professionals.
Over a third of workers (36 per cent) said flexible working arrangements and evidence of a passive working culture could persuade people to choose one job over another.
Posted by Jon Aspinell on 2nd July 2015
Join a hugely successful business services group as a commercially aware, analytical, but creative marketing executiv...
Junior PHP / Web Developer
£25000 - £35000 per annum
Junior PHP Web Developer - Highly Technical Application - Friendly, Professional Business This company is an exciting...
IT Support Manager
£35000 - £45000 per annum
IT Support Manager - Sutton, Surrey - £35,000 - £45,000 depending on experience A split role between hands-on technic...
IT Support Engineer
City of London, London
£30000 - £35000 per annum + good benefits
A fantastic opportunity has arisen within a successful media organisation. They are looking for a 2nd Line Support En...
Software Architect (C++)
A well-established businesses are seeking a C++ Developer to design and develop market leading software for a range o...
Java Developer - North London - £35,000
North London, London
Up to £35000 per annum + 25 days holiday and benefits
Java Developer (Extensive training and development offered) - North London - £35,000 plus 25 days holiday and benefit...
How can you ensure cohesive communication with a team of remote workers?
Remote working is becoming increasingly adopted by organisations across the globe - whether that takes the form of an...
Can HR tech ease workplace conflict?
Workplace conflict is mostly unavoidable - particularly when businesses hire strong-minded talent with big ideas. Ego...
What to prioritise in your employee experience
The candidate experience has long been valued by employers looking to attract fresh talent. Now, however, companies a...
What can HR expect in 2018?
HR departments are set to face many new challenges in 2018, from the technological to the traditional. Among the most...
From communication to drive: The importance of soft skills
Soft skills are often difficult to quantify, yet they can become an absolute necessity for your business to reach its...
Only one in three workers say their employers offer training
Just one-third of workers report that their employer offers regular training opportunities, a new poll by the Trades ...