For a company with 10,000 employees, they are looking at spending as much as $7.6 million in additional salaries to make up for a poor employer brand.
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 10% pay raise would only convince 28% of candidates to sign on the dotted lin
A real case study: Two years ago, Virgin America surveyed its rejected candidates and found that 18% were their customers. What’s worse is that 6% switched to a competitor as a result of the negative experience. This cost Virgin roughly $6.2 million in lost revenue – almost as much as the company’s annual recruiting budget.
A CEB study shows that a strong employer brand can increase your quality of hire by 9%. A poor 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.
Source: Proactive Talent Strategies, LLC