Can a Bad Reputation Increase Hiring Costs?
According to an article by the Harvard Business Review, the answer is “YES” and by up at least 10% more per hire. So how did they arrive at this jump in cost?
The article, which can be found by clicking here, outlines the process by which they came up with this figure. The number is based on the average US salary of $47,230, an assumed annual turnover of 16.4%, and the minimum 10% pay increase that research has shown was necessary to convince a candidate to take a job.
Whether you agree with the dollar amount or not, I think we can all agree that steps can be taken internally to mitigate risk by addressing a couple of key areas:
Start by finding out where your reputation currently stands. This can be done internally and externally, with surveys to learn how people actually feel about the company.
Figure out a value proposition for employees. What makes your team tick? What motivates them? What demotivates them? These key pieces of knowledge can give you a clear path on what your campaign should be when recruiting and how to showcase the best of your organization.
The list in the article continues on, but those were our biggest takeaways from an investigative standpoint.