In a telephone survey, respondents were asked to select which company they would rather work for: "Company A" which has an excellent reputation and would pay a salary that meets their needs or "Company B" which would pay a higher salary, but has a poor reputation overall. Seventy-eight percent selected "Company A" while only 17 percent said "Company B."
Our study indicates that people would actually accept a lower paying job, in order to work for a company with an excellent reputation. According to the research, reputation was more important for women (88%) and adults ages 35-54 (81%). Reputation was especially important for part-time workers (88%). Singles with children and married couples without children were most swayed by reputation (81%). Only 67 percent of men 18-34 would opt to work for the company with the better reputation. Hispanic Americans (90%) were the most likely of any nationality to select the company with the better reputation.
The higher the income, however, the less important reputation became. For those adults making less than $50,000 per year, reputation was most important (82%), while those making more than $75,000 reputation became less of a factor (71%).
While other studies have linked reputations'' positive impact on stock price and consumer and employee loyalty, this is the first survey to demonstrate that reputation is a strong currency able to sway workers, even in the face of a higher salary.
We in the public relations profession have long known that reputation helps build a brand, capture market share, influence behavior and helps organizations achieve business and public policy goals. This study simply bolsters those beliefs and provides concrete data proving that reputation is a valuable asset that needs to be developed and secured. 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.
Reputation is often defined as the overall quality or character as seen or judged by people in general. Reputation is in the eyes of the beholder, where perception is reality.
The study was conducted using a random digit dial (RDD) method, and included 800 completed phone interviews with New Jersey residents age 18 and over. The margin of error for the study was plus or minus 3.5 percent at the 95 percent confidence interval.
Why did we take the poll in NJ? . New Jersey, according to Census 2000, it is the nations'' most affluent state and is one of the most ethnically diverse, and because of the high cost of living, salary is a major consideration for residents living in New Jersey. New Jersey is the ideal proving ground for testing the notion of reputation versus compensation.