How Much Does a Bad Reputation Cost Your Business? [Infographic]

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Nowadays, employees aren’t just looking for the usual benefits a company offers such as job security and opportunities for advancement. They are also looking closely at the company’s reputation. In fact, 84% of employees would consider quitting their job to take an offer from a company with a better reputation.

Today your current and potential future employees view the organization the same way as the general public perceives it. The image you project and the word that goes around are the only means by which they know of your company.

So, if you want to attract the best potential employees, you must give them enough reason to choose your organization. But, how do you attract the best candidates for the current vacancies in your organization?

Key Takeaways:

• If a business has negative reviews, 80% of customers who were surveyed said they wouldn’t buy from that business.

• Negative reviews outweigh positive reviews by more than 10 to 1, meaning it takes at least 10 positive reviews to balance out a single negative review.

• Positive reputation can come from maintaining a high standard of ethics and by supporting high employee satisfaction.

Branding and Reputation

First, by being a well-established brand with a good reputation especially on social media. 75% of employees in the UK agree that social media is a valuable tool for managing brand reputation. By ensuring that you have good reviews from your past and present customers (and employees!), you can expect continuous employment growth.

On the contrary, it becomes difficult to attract prospective employees if you have a damaged stature. You can only expect to recruit the best of the best if the organization is in a position of authority and excellence.

To achieve excellence, you must work towards building and maintaining a solid reputation. You can be the employer of choice if you invest in building your brand’s name and image and in protecting it.

Aside from recruitment, your business’ bottom line can take a considerable hit if your brand’s reputation remains less than sterling.

The Cost of Bad Reputation

Check out the infographic below created by the team at Apex Global Learning that shows you how much a bad reputation can hurt your business.

Business Reputation FAQs

1. What causes a bad reputation for a business?

   The causes of a bad reputation for a business can include ethical problems and low employee satisfaction. Many consumers will be less inclined to buy from a company that has a poor reputation due to ethics-related scandals.

   Businesses also develop bad reputations when large numbers of their employees report low satisfaction.

2. How can I track my business’ reputation?

   You can track your business’ reputation on social media or by metrics such as stock price. You can monitor social media, especially among key demographics for your business, to track how the reputation of your business is affected by events.

   Depending on the size of your business, changes in stock prices might also be representative of changes to the business’ reputation.

3. Can business reputation be directly related to revenue?

   Yes, business reputation can be directly related to revenue. Reputation, especially when quantified in the form of online reviews or other feedback, can directly affect revenue by decreasing the number of customers who choose to patronize a business.

4. What is considered a good reputation for a business?

   A business’ reputation is considered to be good if at least 20% of news media stories are positive. On the other hand, if 10% or more of news stories about a business are negative, the reputation of the business might be in danger.

Final Thoughts

The reputation of your business can have a direct effect on its bottom line, and shouldn’t be ignored. It’s important to understand what causes a business to have a bad reputation, and what the consequences of that bad reputation can be.

Remember, even a small difference in online review scores can directly translate into a big difference in revenue.

Author

Paul Slezak

With over two decades of experience in the recruitment and human capital industry, Paul Slezak has established himself as a transformative force in the realm of leadership and career coaching, group facilitation, and talent acquisition. His unique perspective, drawn from his early career as a leader in global recruitment firms and his entrepreneurial success with his own start-up, has enabled him to make a significant impact on leaders, teams, and organizations across the world. Paul's passion for helping others achieve success and high performance is evident in his commitment to transforming leaders and their teams at local, national, and international levels. He specializes in promoting the importance of human-centered intelligence, focusing on soft skills such as authenticity, transparency, and trust to complement business-centered acumen and drive better workplace outcomes. As an impartial facilitator, Paul brings his expertise to team offsites and strategy days, ensuring alignment on goals, values, and culture while keeping participants on task. His engaging and energetic presence, coupled with his unique "entertraining" and "edutaining" delivery style, enables him to connect with audiences both large and intimate, sharing personal and professional anecdotes that inspire and energize.