For employees, company reputation outranks compensation
By John Burke • Bankrate.com

Do you monitor your company's reputation? You should. It could make a difference in landing workers. In most cases, reputation is more important to employees than, believe it or not, money.

Seventy-eight percent of adults say they would prefer working for a company with a good reputation than for one held in lower esteem even if they were offered a higher salary, according to a recent study released by the Cherenson Group. The study, in which 800 adults ages 18 and older participated, also found reputation is more important to women (88 percent) and adults ages 35 to 54 (81 percent).

"This study provides concrete data proving that reputation is a valuable asset that needs to be developed and secured," said Michael Cherenson, vice president of the New Jersey-based public relations firm. "Companies would be wise to invest in their reputation and go beyond the simple tactics to develop long-range strategies aimed at building their reputation.

"Organizations, large and small, need to realize that actions speak louder than words and listening is often more important than speaking."

Higher wages offset public perception
However, some workers do have a price. Not surprisingly, the reputation factor begins to crumble the higher the salary offers go, specifically when they break the $50,000 threshold.

Reputation is most important for 82 percent of adults making less than $50,000 a year. For those making $75,000 annually, reputation becomes less important. In this pay bracket, only 71 percent concern themselves with a company's reputation.

Single workers with children and married couples without children (81 percent) consider reputation important. Eighty-eight percent of part-time workers say a firm's reputation matters to them. But only 67 percent of men ages 18 to 34 would choose to work for the company with a better reputation if it meant lower pay.

Hispanic Americans (90 percent) were the most likely of any nationality to choose to work for the company with the better reputation.

How is your company's reputation? Do you have to offer higher salaries because of bad word of mouth? Do you pay attention to exit interview comments and recommendations?

-- Posted: Nov. 14, 2001