The annual cost of a poor employer brand runs into millions of pounds. This comes from several factors- the opportunity lost in the talent pipeline, the money thrown at new hires to overcome a negative reputation, the money spent to overcome negative press, a higher rate of turnover, training, line management time etc.
Add to this the impact on lost revenues that can come from a poor candidate experience and it does make you wonder why more thinking and investment is not allocated to these issues.
LinkedIn’s report estimates that bad employer branding adds 10% to the cost of hiring, which is what it’ll cost you in additional wages to compensate for a poor reputation (bear in mind that doesn’t account for added extras like diminished morale and subsequent attrition). A Harvard Business Review survey found nearly half of the individuals surveyed would entirely rule out taking a job with a company with a negative reputation. A 10% raise would only tempt 28% of them to join such a company. A bad reputation is costing quality applicants who do not want to be associated with the organization. Millennials are significantly more likely to accept a reduction in pay trading for a positive employer brand. 23% would be willing to accept a small (2%) pay cut, and 15% would go as far as a 5% reduction