Negative Publicity Can Impact Hiring, Morale, Turnover and Sales

Rachel Nauen


Is the popular saying “there’s no such thing as bad publicity” a myth? Yes, according to a new CareerBuilder survey, which found that 71 percent of U.S. workers would not apply to a company experiencing negative publicity, and companies that have experienced negative publicity say it has business-wide impacts.


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


What Does This Mean for You?


If your company is experiencing negative publicity, aim to promote transparency and take a proactive approach to issues or complaints. Companies that do this will have a better chance of securing trust and loyalty and maintaining a positive reputation that can strengthen recruitment and retention strategies.


And while negative news travels faster in our social world, companies should also focus on sharing their positive news to strengthen their company overall. Nearly 4 in 5 employers who have experienced positive press have seen beneficial impacts such as higher morale among employees, employees were most likely to share positive things about the company on social channels, a boost in sales and more job applications. 


Whether you’re in the headlines or not, you should always make your candidate experience as seamless and easy as possible. Check out how to take your candidate experience to the next level.


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