In such a competitive employment market, it\u2019s becoming more and more important, as people have a lot of job offers to consider at any given time. And one of the ways to get them interested in working for your company\/brand is by standing out and showing them your true colors.<\/span><\/p>\n 1. According to a <\/span>study<\/span><\/a> by Harvard Business Review and ICM Unlimited, companies with a bad reputation or simply who are not attractive are expected to spend<\/span> at least 10% more per hire<\/b>. <\/span><\/p>\n For a company with <\/span>10,000 employees<\/b>, they are looking at spending as much as <\/span>$7.6 million in additional salaries<\/b> to make up for a bad employer brand.<\/span><\/p>\n 2. Based on their calculations, Harvard Business Review found that companies needed to pay <\/span>$4,723 more per hire<\/b><\/a> in order to convince a candidate. <\/span><\/p>\n And this is only the candidates who may be willing to take the job offer. Nearly half of all respondents surveyed say they would still rule out a company with a poor reputation if offered a pay increase. Even a <\/span>10% pay raise<\/b> would <\/span>only convince 28%<\/b> of candidates to sign on the dotted line.<\/span><\/p>\n 3. In Canada, the <\/span>annual cost of a poor employer brand<\/span><\/a> is estimated at approximately <\/span>USD $3.5 million per year<\/b>, <\/span>$5.9 million for the UK<\/b> and a staggering <\/span>$8.2 million for Germany<\/b>. <\/span><\/p>\n That\u2019s not cheap, is it? Imagine now using this as a budget for your employer strategy, the benefits of having people wish and aspire to work for you would be tremendous. Rather than paying for a bad brand, invest in it and you will see an influx of better prepared and motivated people.<\/span><\/p>\n 4. Let\u2019s take a look at a case study:<\/span><\/p>\n Virgin America <\/span>surveyed its rejected candidates<\/span><\/a> and found that <\/span>18% were their customers<\/b>. <\/span><\/p>\n What\u2019s worse is that <\/span>6% switched to a competitor <\/b>airline as a result of <\/span>negative candidate experience<\/b>. This weak employer brand <\/span>cost Virgin roughly $6.2 million in lost revenue<\/b> \u2014 that was almost as much as the company\u2019s annual recruiting budget.<\/span><\/p>\n 5. A study shows that a <\/span>strong employer brand<\/span><\/a> can <\/span>increase your quality of hire by 9%<\/b>. <\/span><\/p>\n A weak employer brand, on the other hand, would mean hiring average to below average performers, given most of the highly sought-after top talent on the market will not apply or accept job opportunities with your company.<\/span><\/p>\n For a company like Apple, <\/span>the cost of hiring an underperforming employee<\/b> would cost them <\/span>$240,000<\/b><\/a> a year<\/b>! <\/span><\/p>\n However, by proactively building a brand that influences only the best talent to apply and work for them, organizations can expect <\/span>improved profitability and <\/b>$1.4 million in savings<\/b><\/a> every year<\/b>.<\/span><\/p>\n Now with this data clearly laid out, we can see the costs and effects of a weak employer brand, far surpass just the HR needs and can destabilize and even stop an organization.<\/span><\/p>\n For inquiries about employer branding or an audit request, feel free to send us an email at <\/span>hello@subsign.co<\/span><\/a><\/p>\n\n\nWhat are the actual costs and impact on a company?<\/b><\/h2>\n
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