What's the cost of poor Employer brand?

Canadian businesses feel the effect of a poor employer brand directly in their revenue line items as the annual cost of a poor employer brand is estimated at approximately $3.5 million dollars USD. This is because poor reputation leads to decreased trust among your prospect pool of candidates, making it harder for your recruitment team to do their jobs and deliver qualified candidates. 

Sometimes the employer brand is just so awful that companies need to pay more in terms of salary and benefits in order to convince qualified candidates to sign on as a new hire. And even then, a recent Harvard Business Review study suggests that only 28% of candidates would be enticed by the 10% inflated salary to take a chance on a company with a poor employer brand reputation. 

It doesn’t even have to be that your reputation is awful, it could also be lack of reputation that erodes trust in this part of your internal funnel. Lack of reputation can be just as damaging. It can put up barriers to your talent pool that you may not expect, especially as the most qualified of candidates will do their research on you before deciding to apply to open positions in the first place.  As B2Bs need to hire quality candidates with specialized skill sets, a poor employer brand can be extremely harmful to your overall growth - especially when trying to scale up the size of your business or startup.