Poor employer reputation is actively costing businesses talent, with nearly one in five candidates refusing to apply for roles and 15% turning down job offers based on how they perceive a company.

New research from B2B PR agency Midnight reveals that employer brand has become a decisive factor in hiring, as employees increasingly apply a “values filter” when choosing where to work.

The study found that 82% of UK employees want their employer to reflect their personal values, with this expectation translating into real-world decisions:

• 19% have chosen not to apply for a role due to poor reputation.

• 15% have turned down a job offer.

• 13% have left a job altogether.

The effect is even more pronounced among younger workers, with Gen Z and Millennials more likely to walk away from employers that fail to meet expectations.

However, the data shows a clear upside for organisations that get it right. A strong employer reputation is directly influencing positive decisions:

• 24% have accepted a job offer because of a company’s reputation, rising to 41% among Gen Z.

• 26% have recommended an employer to others.

• 25% have applied for a role based on reputation.

Flo Powell, Joint Managing Director at Midnight, said: “Employer reputation has become a dealbreaker. Candidates are not just assessing the role; they are assessing what a company stands for.

“Companies are losing talent before they even reach interview stage. If your values are unclear, inconsistent or invisible, candidates will simply opt out.”

The shift is set to accelerate. Two thirds (67%) of employees say employer reputation will play an even greater role in their decisions in future.

The research also highlights a disconnect between what employees are looking for and what companies communicate. In discussions with University of Sussex students, they reported that it is often difficult to understand what an employer actually does, let alone assess its culture or reputation, based on its website and social channels.

Flo added: “There is a growing gap between what companies think they are communicating and what candidates actually see. Closing that gap will be critical for any organisation competing for talent.”

The list of personal values that employees want to be mirrored by an employer include:

• Hardworking 44%

• Integrity and honesty, 43%

• Respect for others, 37%

• Compassion and kindness, 34%

• Treating people equally, 32%

• Friendly, 31%

• Fairness, 26%

• Caring about the environment, 15%

• Valuing diversity, 11%

For more information or to access the full research, visit https://www.midnight.co.uk/research-report/.