Candidate Resentment & Company Revenue
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8.28.19 | After having a bad consumer experience with a product, an employee, or a company policy, have you ever decided to “take your business elsewhere?”
Candidates are no different.
For consumer-based businesses, the candidate experience easily becomes a consumer one that can impact an employer’s revenue. When a candidate has a bad experience, she or he may decide to no longer purchase the company’s products or services. Moreover, they are likely to share their story with others.
According to 2018 Talent Board benchmark research, 11% of candidates are willing to sever their relationship with a company based on a poor candidate experience. This percentage, known as the resentment factor, can have a far-reaching financial impact.
Let’s do the math
To illustrate potential impact, the Talent Board offers the following scenario:
Assumption: 100% of the people who apply are potential customers and/or influencers affecting revenue and referrals.
Employer hiring overview:
- Applicants per hire = 100
- Rejected applicants per hire = 99
- Annual hires = 1,000
- Rejected applicants per year = 99,000
Negative resonance factor = candidate tells 1 person (at a minimum)
- Total rejected candidate audience = 198,000
- Average value of a customer = $100
@11% resentment rate (those willing to sever the relationship):
- Potential lost customers = 21,780
- Potential lost revenue = $2,178,000
What’s your math?
The formula outlined above is designed to provide rough estimates based on hiring numbers. To get your numbers, use the Talent Board’s resentment calculator.
Put the numbers in your favor
On the flip side of this equation, a great candidate experience can lead to increased revenue. Dedicating resources to the candidate experience is a good investment for your employer brand and your bottom line.