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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.

Engage with the Community and Social Responsibility:

  • 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.