By: SIA Staff

Negative publicity can hamper the ability of companies to recruit talent, according to a survey released today by CareerBuilder. The survey found 71% of US workers would not apply to a company experiencing negative press. Female workers were much more likely not to apply to a company experiencing negative press than their male counterparts, at 79% and 61%, respectively.

More than a quarter of employers, 26%, said their company has experienced negative publicity, resulting in a hit to their hiring process. Sixty-one percent of these employers report fewer job offers being accepted, fewer candidate referrals from employees and fewer job applications as a result of the negative publicity. Other negative effects to the business included lower employee morale, higher voluntary employee turnover and a decline in sales.

While bad publicity may turn off candidates from applying, the survey found it rarely causes current workers to leave their jobs. Less than one in 10 workers, 6%, have left a company because of negative publicity.

On the bright side, nearly four in five employers that have experienced positive press observed beneficial impacts, including:

  • Higher morale among employees: 42%
  • Employees were most likely to share positive things about the company on social channels: 36%
  • Boost in sales: 36%
  • More job applications: 32%
  • More job candidate referrals from employees: 22%
  • More job offers being accepted: 21%
  • Lower voluntary employee turnover: 19%

“In today’s 24/7 news cycle and social media world, earning and maintaining a good reputation can be a challenge,” said Rosemary Haefner, chief human resources officer at CareerBuilder. “It’s easier than ever before for job seekers to research potential employers. Employers that value transparency and take a proactive approach to issues or complaints will have a better chance of securing trust and loyalty and maintaining a positive reputation that can strengthen their recruitment and retention strategies.”

The survey was conducted online within the US by Harris Poll on behalf of CareerBuilder among 2,369 hiring and human resource managers and 3,462 employees. It was conducted between May 24 and June 16, 2017



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