Employers are losing candidates before interviews even begin as growing numbers of workers reject companies whose values, culture or public image fail to match their expectations.
Young employees in particular are increasingly using a company’s reputation as a deciding factor when applying for jobs, accepting offers or choosing whether to stay in a role, according to new research into changing workplace attitudes.
Experts say it is placing growing pressure on employers to communicate workplace culture more clearly as competition for skilled staff remains intense across many sectors.
Research from PR firm Midnight found that 19 percent of workers had decided not to apply for a role because of a company’s reputation, while 15 percent had turned down a job offer for the same reason.
Reputation becoming a hiring dealbreaker
The study also found that 13 percent of employees had left a company because of concerns around reputation, workplace culture or values alignment.
At the same time, businesses with strong reputations appeared to benefit directly during recruitment. Around a quarter of workers said they had applied for a role because of a company’s reputation, while a similar proportion said they had accepted a job offer or recommended an employer to others for the same reason.
The effect was strongest among younger workers. Among Gen Z employees, 41 percent said they had accepted a job because of a company’s reputation, compared with just 5 percent of Baby Boomers. Gen Z workers were also significantly more likely to reject offers, avoid applications or leave employers over concerns about reputation or leadership behaviour.
The report suggests that many younger employees increasingly view work as an extension of their identity and personal values. More than four in five employees said it was important that employers reflected their own values, while 83 percent believed businesses should consider their impact on people, society and the environment alongside profit.
Flo Powell, joint managing director at Midnight, said employer reputation had become a major factor in both recruitment and retention.
“Employer reputation has become a dealbreaker. Candidates are not just assessing the role; they are assessing what a company stands for,” she said.
She warned that businesses were losing talent long before recruitment teams even had the opportunity to speak to candidates. “Companies are losing talent before they even reach interview stage. If your values are unclear, inconsistent or invisible, candidates will simply opt out.”
Company culture now rivals pay
The research suggests that company culture is becoming almost as important as salary and benefits when employees judge employers.
Fair pay and benefits remained the biggest factor influencing whether workers would recommend an employer to others, but positive workplace culture ranked second ahead of trust in leadership and ethical business behaviour.
Workers said the values they most wanted reflected by employers included hard work, integrity, honesty, respect for others and fairness. Compassion, kindness and equal treatment also ranked highly. The report also warned of a growing risk of disengagement among employees who remain in roles despite becoming disconnected from company culture.
Mo Kanjilal, founder and director of Edge of Difference, a diversity, equity and inclusion consultancy in Brighton, said poor culture could contribute to so-called “quiet quitting”, where employees become disengaged while remaining in post.
“It’s clear that culture is a factor in both attraction and retention, even when companies don’t realise it,” she said. “The reality is if you don’t engage with employees, you may never know what’s coming down the line.”
She said that for “employees who ‘just need a job’ or when the most important thing is that work is near to home, then people will put up with poor culture even if they aren’t enjoying it… But only until they find a good alternative.
“Quiet quitting is a big risk for businesses with poor culture because they may have people on board who are disengaged and only staying because feel they have to.”
Digital reputation shaping recruitment
The report found that online reputation increasingly shapes how candidates judge employers before applying.
Almost half of employees said how current staff spoke about a company most influenced their perception of employer reputation. Reviews on sites such as Glassdoor, company careers pages, LinkedIn activity and media coverage were also major influences.
Younger workers were particularly likely to use social media, online reviews and LinkedIn to assess employers. Students involved in the study said they often struggled to understand what companies actually did from careers pages and corporate messaging.
One undergraduate involved in the research said many businesses failed to explain their purpose or culture clearly enough online.
Leadership visibility also emerged as an increasingly important factor in recruitment. More than 60 percent of workers said the public profile or reputation of senior leaders would influence whether they applied for a role. Public statements from chief executives and media appearances were among the strongest influences on perception.
Chris Hatherall, a content lead and trainer at Midnight, said the era of low-profile chief executives was ending.
“The days of the silent CEO are numbered,” he said. “There’s an increasing desire from employees, customers and the public to know more about leaders, actively seeking them out across every channel to understand their values, purpose and leadership style.”
The research was based on a survey of 1,000 UK employees conducted by polling firm Censuswide in February 2026, alongside focus groups involving students from the University of Sussex Career Lab.
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
