UAE companies paying the cost of a bad reputation

- New LinkedIn study reveals potential annual cost of AED2,280,800 to UAE employers with poor employer brands

- One in ten UAE professionals would take a pay-cut to work for a company with a better reputation

LinkedIn (NYSE:LNKD), the world’s largest professional network, today announced the results of its ‘Winning Talent’ study conducted among professionals in the UAE. The research uncovered that employers failing to invest in their reputation among potential candidates – their employer brand - could be paying an additional wage bill of AED 2,280,800* per year for a company of 10,000 employees.

The five more desirable characteristics of an employer brand, in order of importance, according to respondents are:

More professional development opportunities
Increased job security
The opportunity to work with a better team
Higher industry profile
Reputation for better leadership

More than 50 per cent of respondents highlight more professional development opportunities and increased job security as the factors most likely to persuade these full time workers in the UAE to accept a role with a new employer. 46 per cent indicated the opportunity to work with a better team and 44 per cent look towards a higher profile in the industry as important factors. An industry reputation for better leadership influences the decision of 37 per cent of respondents.

More than 30 per cent of UAE job-seekers would be willing to join a company that demonstrates these characteristics, even if the move was not accompanied by a rise in pay. This response is consistent even among passive candidates – those not actively seeking a new role – of whom 29 per cent would be willing to accept the same pay if there was the opportunity to move to a company with these attributes. Of those who would move to a company demonstrating all five characteristics, 29 per cent would do it without a pay raise, 14 per cent would accept a marginal salary cut, and more than one in 10 would go as far as a five per cent reduction in salary.

Ali Matar, Head of LinkedIn Talent Solutions, MENA, commented, “LinkedIn’s Winning Talent research reveals the impact that a poor reputation as an employer can have on a company’s bottom line. In addition to attracting better employees, a strong employer brand helps employee retention and engagement, and effectively converts your best assets into your company’s evangelists.”

Male respondents were more likely than females to accept a reduction in pay in order to get into the ‘right’ company, with 33 per cent of males being willing to move to a more desirable employer brand even without a pay rise.

According to the LinkedIn study, the top factors that are most likely to put candidates off from working for a potential employer were:

Concerns around job losses and job security (a turn-off for 41 per cent)
Fewer professional development opportunities (40 per cent)
Working with a dysfunctional or poorly performing team (31 per cent)
A reputation for poor leadership from senior managers (31 per cent)
A lower profile in the industry (30 per cent)

The study also showed the impact on the size of talent pool available to companies with a bad reputation, with half of all respondents said that they will not consider a job with a company with weak employer brand. In addition, these companies could be paying over the odds for the candidates they do hire, with 24 per cent of respondents said that they would only move for a salary hike of at least 10 per cent. Women feel more strongly about this, with 52 per cent of all female respondents would outright reject a job offer from a weak Employer Brand.

The study also uncovered the best routes for companies looking to improve their reputation among candidates, with the most-valued opinions being: