How Narrative Attacks Threaten Workforce Stability

During a time when the talent competition is fierce, many job seekers are influenced by an employer’s brand reputation. Employers must be vigilant in safeguarding their reputation and the impact of narrative attacks that cause financial and reputational harm.

Unfortunately, narrative attacks don’t just impact an organization’s ability to attract talent—they can also impact the existing workforce. Employees may experience decreased morale, erosion of trust, perceived career risk, external pressure, talent flight, and competitive poaching.   

LEARN: What Is Narrative Intelligence?

False or misleading public narratives may cause employees to lose confidence in their employer and question their decision to stay. This can create mistrust and doubt in their leadership’s abilities, in addition to feeling uncertain about the company’s future. Some employees may fear that staying with a company facing public criticism could harm their professional reputation, leading them to leave in search of more secure career prospects. Others may face pressure from family or professional networks to explore opportunities elsewhere, further compounding the issue.

Key Metrics

Unfortunately, harmful company narratives can be costly. According to an article in Harvard Business Review by Wade Burgess, “a bad reputation costs a company at least 10% more per hire.” Companies with poor employer branding may need to pay above-market rates to secure top talent. Moreover, nearly half of job seekers rule out companies with a bad reputation, regardless of any potential pay increase. Even for those considering joining, it takes at least a 10% salary premium to convince them.

• Employee Turnover Due to Toxic Culture: A Society for Human Resource Management (SHRM) report revealed that toxic workplace cultures cost U.S. employers $223 billion over five years due to employee turnover.
• Financial Impact of Bad Hires: The U.S. Department of Labor estimates that the cost of a bad hire can reach up to 30% of the employee’s first-year earnings.
• Disengaged Employees and Productivity Loss: A Gallup report concluded that disengaged employees cost the U.S. $550 billion annually in lost productivity.
• Impact of Employer Reputation on Hiring: Nearly 50% of job seekers would rule out companies with a bad reputation, regardless of any potential pay increase.
• Cost of Replacing Employees: Depending on their seniority level, replacing an employee can cost a company anywhere from 30% to 150% of that employee’s annual salary. 

Narrative attacks that harm a company’s reputation can create challenges in the recruitment process. Negative public narratives about a company’s culture, stability, or values can discourage potential applicants, limiting the talent pool and increasing the cost of hiring because employers are forced to offer higher compensation to overcome negative perceptions. The turnover and recruitment inefficiency cycle strains organizational resources and impacts productivity.

LEARN MORE: Communication Leaders Misinformation & Disinformation Attack Readiness Checklist

Today’s job market is competitive, and candidates have more choices than ever before; therefore, organizations must recognize what draws top talent to their companies. While work-life balance, career development, and compensation play essential roles, it all starts with employer brand reputation. 

By understanding the risks narrative attacks pose, organizations should take the initiative to safeguard their reputation and mitigate their impact on hiring and employee retention.

To learn more about how Blackbird.AI can help you in these situations, book a demo.