Article 05 - Crisis Management & Employer Branding Handling Reputation Challenges

 

What is Crisis Management? 

The practice of minimizing a sudden or significant incident that could negatively affect a corporation is known as crisis management. The objectives are to reduce the impact of the crisis, maintain business operations, and learn from the reaction to aid in future crises.

Posey (2023) suggests that Crisis management is a strategy used to handle sudden negative events while maintaining business continuity. It involves implementing policies and procedures to defend, mitigate, and prevent crises. These can be caused by unpredictable events or unforeseeable consequences, such as natural disasters, financial problems, or cybersecurity attacks. Potential damage can affect health, safety, finances, reputation, customer loyalty, or a combination of these.

                                                               Source by: (Fastercapital.co, 2025)

The Role of Crisis Management in Brand Reputation

This guide provides 5 essential steps for brand reputation crisis management, focusing on swift action, clear communication, and rebuilding trust. It offers practical insights to navigate challenges with resilience, transforming challenges into opportunities for growth and protecting a brand's reputation. (Epstein, 2024)

  •      Determine the Crisis and Acknowledge It
  •      Put together a team for crisis management
  •      Communicate Fast and Efficiently
  •      Focus On Solutions, Not on Defending Statements
  •      Always be attentive and learn from mistakes

Handling a brand's reputation crisis not only involves repairing harm but also highlighting values, resilience, and dedication. By acknowledging the problem, taking responsibility, speaking clearly, focusing on solutions, and learning from the event, challenges can be transformed into opportunities for development.


                                                                    Source by: (Youtu.be, 2025)


According to Lievens, (2007) in the modern business environment, a company’s ability to attract top talent depends on its reputation and image. In fact, there has been much research focused on employer branding and talent achievement. However, with the rapidly changing technology, the present economy is connected globally and virtually through a different range of sources in both informal and formal forms such as social media, networking platforms or websites. Employer branding is more difficult since workplace information is becoming commonplace via social media platforms (McFarland and Ployhart, 2015).

 In a highly competitive marketplace, companies need to attract and retain the best workers to compete for customers (Berthon, Ewing, and Hah, 2005). Thus, companies have to differentiate themselves from their competitors and build their reputation and image to retain current employees and attract prospective applicants (Lievens and Slaughter, 2016). Accordingly, several companies have developed standard and official employer branding programs, in which they have spent considerable resources on campaigns, advertisements, websites, and social networks. In addition, companies also need to understand the job seekers’ expectations if companies want to recruit them.



              Source by : (Nguyen Ngoc Thang and Pham Thu Trang, 2024)

 vorecol.com (2019) suggest that navigating employer branding challenges during crises requires strategic and proactive approaches. Prioritizing transparency, communication, and employee well-being, companies can maintain a strong brand and attract top talent. By demonstrating empathy, honesty, and resilience, they can adapt quickly and strengthen their employer brand for the long term.

What is Reputation Management?

 






Brand reputation is the perception and trust people have towards a brand, influenced by interactions with it in person or online. Factors such as logo, online presence, service quality, and company ethos can impact it. A good reputation fosters trust, leading to more customers and recommendations. Conversely, a bad reputation can harm a business. To grow a brand successfully, pay attention to positive reviews and respond to negative comments. Negative comments on social media can spread and harm the brand's reputation, so it's crucial to address them promptly. (www.rebootonline.com, n.d.)

The reputation of a brand is similar to its personality. It develops gradually through regular contacts and actions. A brand needs to be supposed as dependable and dependable, just as you want people to think favorably. Additionally, brands must carefully manage their online company and respond to negative feedback, just as you would with the odd horrible comment.


                                               Source by : (www.rebootonline.com, n.d.)


Case Study with Employer brand experience development in a crisis situation

 The COVID-19 pandemic has significantly impacted service companies' business operations, leading to difficult decisions about securing operations and finding savings. This research investigates the impact of the pandemic on case company X's employer brand experience, focusing on employee dissatisfaction with crisis management and communication. The study, conducted through interviews with twelve employees, found that employees are mostly dissatisfied with the company's crisis management actions and internal communication. They also disagree with rewarding employees in crisis situations. The research highlights the importance of transparent, open, and interactive communication in crisis situations, emphasizing the need for effective leadership and management. (Sinkkonen, 2021)

The above case explains how the COVID-19 pandemic caused major disruptions for service companies, forcing them to make tough decisions to sustain operations and cut costs. This study focuses on how these challenges affected Company X’s employer brand experience, particularly in terms of employee dissatisfaction with crisis management and communication.

This case study emphasizes that poor crisis management and communication can severely damage employee trust and satisfaction. To maintain a strong employer brand during crises, companies must prioritize transparency, employee engagement, and fair treatment.

 

Reference List


Berthon, P., Ewing, M. and Hah, L.L. (2005). Captivating company: dimensions of attractiveness in employer branding. International Journal of Advertising, 24(2), pp.151–172.

· Epstein, M. (2024). Brand Reputation Crisis Management: 5 Essential Steps. [online] NexGen Agency. Available at: https://www.nexgenagency.com/blog/5-essential-steps-for-brand-reputation-crisis-management/.

· Fastercapital.co. (2025). Available at: https://fastercapital.co/i/Brand-Image--How-to-Improve-and-Protect-Your-Brand-Image--Crisis-Management-and-Brand-Image-Protection.webp [Accessed 1 Apr. 2025].

· Lievens, F. (2007). Employer branding in the Belgian Army: The importance of instrumental and symbolic beliefs for potential applicants, actual applicants, and military employees. Human Resource Management, 46(1), pp.51–69. doi:https://doi.org/10.1002/hrm.20145.

· Lievens, F. and Slaughter, J.E. (2016). Employer Image and Employer Branding: What We Know and What We Need to Know. Annual Review of Organizational Psychology and Organizational Behavior, [online] 3(1), pp.407–440. doi:https://doi.org/10.1146/annurev-orgpsych-041015-062501.

· McFarland, L.A. and Ployhart, R.E. (2015). Social media: A contextual framework to guide research and practice. Journal of Applied Psychology, 100(6), pp.1653–1677.

· Nguyen Ngoc Thang and Pham Thu Trang (2024). Employer branding, organization’s image and reputation, and intention to apply: the moderating role of the availability of organizational information on social media. Frontiers in sociology, [online] 9. doi:https://doi.org/10.3389/fsoc.2024.1256733.

· Posey, B. (2023). What is Crisis Management? [online] WhatIs.com. Available at: https://www.techtarget.com/whatis/definition/crisis-management.

· Sinkkonen, J. (2021). Employer brand experience development in a crisis situation. [online] www.theseus.fi. Available at: https://www.theseus.fi/handle/10024/498821.

· www.internationalsos.com. (n.d.). What is Crisis Management? | Blog. [online] Available at: https://www.internationalsos.com/insights/what-is-crisis-management.

· www.rebootonline.com. (n.d.). A Guide to Brand Reputation Management ⏐ Reboot. [online] Available at: https://www.rebootonline.com/blog/brand-reputation-management-guide/.

Comments

  1. Oshan RanaweeraApril 4, 2025 at 11:01 AM

    This article provides a comprehensive overview of crisis management and its critical role in protecting a brand’s reputation, particularly during challenging times. The clear steps for managing brand reputation during a crisis — from swift acknowledgment to focusing on solutions — are crucial for maintaining trust with both employees and customers. The case study on Company X during the COVID-19 pandemic highlights how poor crisis communication can harm employee satisfaction and trust, which in turn affects the employer brand. As the article suggests, transparency, empathy, and strong leadership are key to navigating such crises successfully and ultimately strengthening the organization’s brand reputation. This is a great reminder of the importance of proactive crisis management in preserving a company’s long-term success and appeal to top talent.

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