Should the average CEO be concerned with what people think of them? Wouldn’t their time be better spent making strategic decisions that drive growth and profits? After all, aren’t those the things that are indicators of success?
At one point in time, CEOs could focus on growth and profitability while spending very little time caring about what people thought of them. That’s no longer the case. Today, CEO ratings matter more than ever and will continue to be important in the foreseeable future.
This article will explore why these ratings matter, what drives CEO popularity, and how to improve your CEO branding.
Why CEO Reputation Matters
The most successful companies are led by CEOs who can:
- Build great teams
- Communicate their vision clearly
- Motivate people in their organization
- Create and execute great strategies
- Contribute positively to the company brand
All of these things are connected to business savvy. They’re also connected to the CEO’s reputation. Nothing listed above will happen if customers, employees, and members of the general public don’t hold the CEO in high regard.
Job Candidates Research Company Leaders
Over the years, the job search has evolved. Job seekers don’t just seek to impress hiring managers and prove they are a great fit for the organization. They also expect to be impressed and prioritize working under leadership that is:
- Trustworthy
- Ethical
- Aligned with their values
- Effective
Candidates are also using various sources to find the information they need and are much more likely to be influenced by what they learn from their peers via reviews and testimonials than by the official “company line.”
The CEO Is the Company’s Biggest Brand Ambassador
When employees act as brand ambassadors, they help companies attract top talent. That’s effective, but nobody is a more powerful brand ambassador than the CEO. Some of the most successful company leaders are taking full advantage of their influence.
If you’re active on social media, you’ve probably noticed CEOs speaking out now more than ever before. That’s because smart leaders know that they can use their social media accounts to connect directly with people and share their messaging without any editing or filter.
Consumers Make Purchasing Decisions Based on Reputation
Consumer and employer branding don’t exist separately from one another. Customers, especially Millennials and Gen Z, want to do business with companies that treat their employees well.
Job seekers want to work with companies that are successful and have loyal customers. Since the CEO is the most visible person in their organization, their reputation has the biggest impact.
What Can a CEO Do to Improve Sentiment?
As important as ratings are, they don’t just happen. A CEO has to earn them. That process begins with a current state analysis. Simply put, you have to know where you stand right now, no matter how uncomfortable that may be.
There are tools available to help with this process. One place to start is by collecting employee feedback. Brands can also learn quite a bit about CEO reputation by reading employee ratings and reviews. Don’t forget to analyze candidate feedback as well.
Both of these methods provide great insights into workers’ views of leadership and culture, things that ultimately fall at the feet of the CEO. This analysis will help identify areas of success and concern.
The next steps are:
- Strengthening areas of weakness
- Doubling down on strengths
- Getting the word out
Here are some key actions that CEOs can take to improve their reputation:
Hire Strong Managers
People don’t quit jobs; they quit managers. While the CEO doesn’t often influence hiring at the lower levels of the organization, they do choose the leadership team. It may help to see department heads, supervisors, and other management employees as direct extensions of the CEO.
Create the Right Company Culture
One of the most important indicators of company culture is the workers’ opinion of company leadership. There is a direct correlation between workers with high opinions of their company culture and significant respect for their CEO.
This correlation lies in the fact that the CEO is seen as the one who sets major policies, strikes the overall tone of the workplace, and serves as an example of work ethics.
Salary Matters
Any CEO who is interested in improving their reputation should take a look at salary and compensation. There is a direct correlation between CEO salary and employee perceptions. In every business relationship, salary equity is an important factor.
This reality doesn’t mean that the top executive should take a pay cut. However, it’s important to ensure that pay is fair, equitable, and aligned with industry standards.
Take Action on Feedback
When it comes to boosting CEO reputation, there is no single roadmap for every situation. Instead, the key is to take action based on the specific feedback that is collected from employees. For this to be effective, you have to ask the right questions. This insight will allow you to tailor any CEO branding efforts accordingly.
Broadcast Positive Steps and Successes
You recognize why CEO ratings matter and what you can do to boost CEO reputation. Now what? Those changes in perception won’t make a difference if nobody knows about them. The final step in maximizing your efforts is to get the word out.
One of the most powerful tools you have is your employees. They share ratings, reviews, and testimonials on social media and other platforms that help spread the right message about your company’s culture and leadership. Engage them as your heralds, spreading the word of company successes online.
