UAE companies which the best reputation as an employer could save AED228 ($62) per head in wages per year, according to a new report by LinkedIn, the world’s largest professional network.
Its Winning Talent study conducted among professionals in the UAE revealed that employers failing to invest in their reputation among potential candidates – their employer brand - could be paying an additional wage bill of AED2.28 million 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 were more professional development opportunities, increased job security, the opportunity to work with a better team, higher industry profile and a reputation for better leadership.
More than 30 percent of UAE job-seekers said they 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 percent 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 percent would do it without a pay raise, 14 percent would accept a marginal salary cut, and more than one in 10 would go as far as a five percent reduction in salary.
According to the study results, more than 50 percent of respondents highlighted more professional development opportunities and increased job security as the factors most likely to persuade them to accept a role with a new employer in the UAE.
Nearly half (46 percent) indicated the opportunity to work with a better team and 44 percent look towards a higher profile in the industry as important factors. An industry reputation for better leadership influences the decision of 37 percent of respondents.
Ali Matar, head of LinkedIn Talent Solutions, MENA, said: “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.”
The survey showed that male respondents were more likely than females to accept a reduction in pay in order to get into the ‘right’ company, with 33 percent 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, fewer professional development opportunities, working with a dysfunctional or poorly performing team and a reputation for poor leadership from senior managers.
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.