If your business has a bad reputation in the market you can guarantee it’s costing you. As recruiters we see it all the time, a bad company reputation causes candidate uncertainty or out right rejection. In today’s highly competitive business landscape, a company’s reputation is a critical asset that can make or break its success.

What is the cost of a bad reputation?

According to Harvard Business Review, “the cost of a bad reputation for a company with 10,000 employees could be as much as $7.6 million in additional wages.”

HBR research found that the top three factors that contribute most to perception that a company would be a bad place to work are:

1.) Concerns about job security
2.) Dysfunctional teams
3.) Poor leadership.

Whether you like it or not, your company has a reputation in the market. The first step to building a great reputation is understanding where your reputation currently stands.

Building a Great Reputation

It’s imperative for companies to prioritise creating and maintaining a positive reputation. Candidates are attracted to companies that can provide: career growth, stability, great leadership/colleagues and a competitive salary. Companies with a strong reputation are able to attract high-caliber candidates and reduce turnover rates.

Effective strategies for building a great company repuation include:

Deliver High-Quality Products or Services:

Consistently provide products or services that meet or exceed customer expectations in terms of quality, reliability, and value.
Invest in research and development to innovate and stay ahead of competitors.
Prioritise customer satisfaction and address any issues or concerns promptly and effectively.

Uphold Ethical and Transparent Business Practices:

Conduct business with integrity, honesty, and transparency in all dealings.
Adhere to ethical standards and legal regulations in every aspect of operations.

Foster Positive Customer Experiences:

Focus on delivering exceptional customer experiences at every touchpoint, from initial interaction to post-sales support.
Listen to customer feedback and incorporate it into product development and service improvements.

Cultivate Positive Company Culture:

Create a positive workplace culture that values diversity, inclusion, and employee well-being.
Offer competitive salaries, benefits, and opportunities for professional growth and development.
Recognise and reward employee achievements and contributions to foster loyalty and engagement.

Actively participate in community initiatives, philanthropy, and corporate social responsibility (CSR) programs.
Support causes aligned with company values and demonstrate a commitment to environmental sustainability and social impact.
Engage in transparent reporting and communication about CSR efforts and their impact on communities and the environment.

Build Thought Leadership and Industry Influence:

Position company leaders and subject matter experts as thought leaders in their respective fields.
Share knowledge, insights, and expertise through thought leadership content, such as blogs, whitepapers, webinars, and speaking engagements.
Participate in industry events, conferences, and forums to network and showcase expertise and innovation.

Monitor and Manage Online Reputation:

Regularly monitor online reviews, social media conversations, and other digital channels for feedback and mentions of the company.
Respond promptly and professionally to customer inquiries, complaints, and feedback on digital platforms.
Proactively address any negative publicity or misinformation to mitigate reputational risks.