Does online information affect your reputation? It’s a simple enough question, but before answering you might want to know that 70% of HR professionals in the US revealed they rejected a candidate basing their decision on the information shared by the person online, according to two research studies commissioned by Microsoft to Cross-Tab Marketing Services. The Redmond company released the studies in concert with the commemoration of the Data Privacy Day (Data Protection Day in Europe) held annually on January 28. No less than 2,500 consumers, HR managers and recruitment professionals in the US, UK, Germany and France were polled for the study.

The online component of people’s mundane activities is growing in importance, but there are downsides to web-centric lives, although less apparent. Users need to understand that the Internet is public domain, and that content they share about themselves can be accessed by everybody. Personal information is available on social networks, blogs, photo-sharing and video-sharing websites, as well as additional online services, and growing in volume each day. In some cases, users think little of their privacy and of their online reputation.

Microsoft is warning people that in their social networking fever, they could in fact be shooting themselves in the foot. The HR professionals in the US which rejected job candidates because of data found by simply performing an online search on the person indicated that the top factor considered was unsuitable photos and videos shared with the world, along with examples of the candidate’s lifestyle and even inappropriate comments expressed by the candidate. It is clear that the time when a consistent CV, experience or studies were the only deal breakers when it came down to getting a job is gone.

“While use of the Internet has evolved dramatically over the past decade, our understanding of how online personas can affect real-world prospects has not necessarily kept pace,” said Microsoft’s Julie Inman-Grant, director of Internet privacy and safety. “You really do need to be vigilant, but at the same time, there is a real opportunity here as well. Fortunately, some simple steps can help ensure your online reputation is an asset rather than a liability.”

People are indeed aware that their online reputation might have repercussions in their real lives, with 63% expressing concerns in this regard, but less than half think twice about what they post online about themselves. And less than 15% of those surveyed believe that their online reputation might have an impact on whether they get a job or not. Of course, human resource professionals might disagree. 79% of US HR professionals surveyed, 59% in Germany and 47% in the U.K. confirmed that they check online reputation before making a decision on a candidate.

All is not lost, says Microsoft. In concert with Data Privacy Day, the Redmond company has launched a new website focused on privacy and online reputation. The software giant is stressing that users need to mind what content they share online, and better manage their online reputations. The software giant is advising users to create compelling online presences of themselves, that will leave the impression they want to those that view the information.

“Our research shows that managing your online reputation can be a significant benefit. Everyone should think critically about the image they’re digitally portraying,” added Peter Cullen, Microsoft’s chief privacy strategist. “We’re releasing new research and guidance to raise people’s awareness on the importance of online reputation management and to encourage them to take action on this issue. Taking a few simple steps today can help you build and maintain the image you’ll want today and need tomorrow.”