Holmes Report 06 Nov 2016 // 11:27AM GMT
If unemployed, 81% of Americans say they would not join a company with a bad reputation, according to a new survey from Corporate Responsibility Magazine in conjunction with Cielo. That’s up four percentage points from 2015.
“The impact on an organization of a bad reputation has never been higher,” said Elliot Clark, CEO of Corporate Responsibility Magazine. “As the unemployment rate is dropping coupled with high demand for many occupations, companies have to be more aware than ever of the impact of a bad reputation on their employer brand if they are going to be successful in their recruiting efforts.”
According to respondents, the bad behaviors most harmful to a company’s culture and reputation include public exposure of criminal acts (41%); failure to recall defective products (25%); public disclosure of workplace discrimination (20%); and public disclosure of environmental scandal (13%).
Of the employed Americans surveyed, only 62% say they would take a job with a company that had a bad reputation if they were offered more money. Males are much more likely than females to take the job, 69% versus 54%, respectively. Of the 2016 respondents, 49% would need a pay increase of 50% or more to consider moving to a company with an unfavorable reputation.
Young people (18-34 year age range) are the least concerned about corporate reputation. Just under three-quarters (73%) say they would take a job with a company with a bad reputation, versus 56% of those 35 years and older.
In contrast, the vast majority, 91%, say they would consider leaving their current jobs if offered another role with a company that had an excellent corporate reputation. In fact, virtually all (97%) of those in the 35-44 year age range say they would leave their current employer and take a job with a company with an excellent reputation.
“Never before has a bad corporate reputation had a greater impact on recruiting the best talent for your organization,” says Sue Marks, founder and CEO of Cielo, a recruitment process outsourcing partner. “Companies with bad reputations face increased recruiting costs due to the greater difficulty to source, offer and on-board new hires. This is particularly true when recruiting females and more experienced workers.”