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Businesses will often investigate the reputation of their employees before they hire them with the thought that a negative reputation will harm or impact the business. Whether or not this is the case and what management can do to manage this is up to debate.
The impact that an employee’s reputation has will often depend on the decisions that the company makes in regards to how much to display their employees. Often a company will attempt to accentuate the reputation of those employees who are well regarded in the business by featuring them prominently on the website of their business and featuring them in articles and other thought pieces on their website. If a person is particularly well known in the industry this can attract not only a significant amount of positive attention to the business but also improve the overall reputation of the business itself.
On the other hand, a negative reputation or association of an employee may be grounds for termination from a position in a company. Certain employees with a very public Image or with a very negative reputation can be a real liability for your business. If termination is not appropriate for these employees you may want to push them to be a less visible member of your firm and not highlight them as part of your organization. Analyze just how negative a reputation they have and how this reputation can damage your business before taking any drastic steps.
As such it is clear that an individual employee’s reputation does matter to an organization and steps should be made to highlight positive reputations and to minimize negative ones. This is only part of the equation and companies should be sure to impart to employees the importance of maintaining a solid reputation for themselves at all times as it can significantly impact your business overall. Also you should implement a company policy regarding an employee’s reputation so that it is clear what will happen if they step outside some predefined rules.