In our last article on candidate experience ROI, we looked at the importance of converting pre-applicant candidates into applicants. In this one, we’re focusing on something just as important: how negative candidate experience can lead to lost revenue.
When you look at the business impact of a poor candidate experience, the numbers can be big. The link between candidates and customers is clear. If your brand is consumer-facing, the way candidates feel about your company after applying can hit your revenue from a few different directions:
- Candidates stop buying your products. Many job seekers apply to companies they already like and support. If they’re treated poorly during the recruitment process, they may take their business elsewhere.
- Bad candidate experiences travel fast. Candidates talk. They post on social media, leave reviews, and share their frustration. That kind of message spreads, damaging your reputation and your brand.
- Candidate resentment affects loyalty. Some candidates may feel so mistreated that they go out of their way to avoid your company—and tell others to do the same.
Think these issues are rare or not serious? Think again.
A Software Advice survey showed that 42% of candidates who had a negative experience said they wouldn’t buy from the company again. Another 34% said they would advise others not to buy from the company. That’s a big business loss tied directly to poor treatment during hiring.
Virgin Media’s $5.4 Million Candidate Experience Lost Revenue
This is exactly what Virgin Media found when they reviewed how bad candidate experiences were affecting their bottom line.
It started when their head of talent noticed a single piece of candidate feedback. A rejected applicant explained that she had been a big fan of Virgin Media and was excited about the opportunity. But the way she was treated during the interview process changed her opinion—and she said she would cancel her subscription.
That led Virgin to dig deeper.
They checked how many rejected candidates were also paying customers. It turned out 18% of the 123,000 rejected candidates each year were customers. Of those, 6% canceled their subscriptions—about 7,500 cancellations.
With each subscription worth £50 ($60) a month, that added up to about £4.4 million, or $5.4 million, in lost revenue per year.
And that’s just the direct impact. Virgin Media believes the full damage is much higher when you include customer dissatisfaction, referrals to revenue, and the long-term damaged employer brand caused by negative word of mouth.
This story triggered a full overhaul of Virgin’s recruitment process and candidate experience. It stands as a reminder to any organization with a public brand: your candidates are often your customers, too.
B2B Companies Aren’t Exempt
If you’re in the business-to-business space, don’t assume you’re safe. Even if candidates don’t buy your product directly, they still talk to others in your industry. A poor hiring experience can hurt how your company is perceived across your network, making it harder to attract talent and build partnerships.
Bad candidate experiences can easily lead to long-term brand damage, fewer referrals, and lost credibility. Over time, all of that adds up to real revenue loss.
What You Can Do About It
Start by asking candidates for feedback. Survey them regularly throughout the hiring process.
- Ask Net Promoter Score questions like: “How likely are you to recommend this company to other job seekers?”
- Ask how likely they are to recommend your product or service to friends.
- Ask how they felt about your brand before applying—and again after the experience.
Giving candidates a chance to speak up helps your brand in two ways:
- It shows respect.
- It gives you useful data to fix problems before they show up in public places like review sites.
When candidate resentment builds, it turns into real risk. But when you listen early and fix issues quickly, you protect both your hiring pipeline and your revenue.
FAQs
What makes a negative candidate experience?
A negative candidate experience usually comes from poor communication, long wait times, unclear feedback, or feeling like just a number. Confusing steps in the recruitment process, low transparency, and no follow-up also make things worse. These problems often lead to bad word of mouth and hurt your reputation.
Does interview feedback mean you haven’t got the job?
Not always. Sometimes feedback is just part of the process. But in some cases, especially if it’s vague or slow to arrive, it could mean the company has moved on. Still, candidates appreciate clear answers—even if it’s a “no.”
What does it mean when a recruiter says a position is on hold?
It usually means the company paused hiring for that role. This could be because of budget, priorities, or internal changes. It doesn’t always mean you’re out of the running, but it’s a sign the process will take longer—or may stop completely.
What do you feel about candidate experience in an interview? How can we improve it?
Most candidates want honest communication, clear steps, and timely feedback. To improve the interview experience, keep people informed, show up prepared, and follow through. Make the process smooth and respectful—it builds trust and reduces candidate resentment.
