Should You Be Worried About Your Company’s Glassdoor Scores?

avatar has created a high degree of transparency about what it’s like to work in any given organization.  This new reality has spawned a variety of different reactions from individuals and from company representatives.  One fairly common reaction among executives has been to dismiss employees’ Glassdoor ratings as representing just the “whiners” within their firm.

We think it’s important to take a closer look.  For one thing, companies with high Glassdoor scores have consistently outperformed the stock market as a whole (see figure below).  And this means the investment community is beginning to pay more attention to Glassdoor ratings.

And what about the impact of scores on potential job applicants?  They’re the main audience on Glassdoor, and they’re systematically combing through scores and reviews for you and for your competitors.  So if your scores are lower than your competitors, it’s likely you’re going to have a tougher time getting high-quality job applicants.

The bottom line? If your Glassdoor scores are lower than your competition, yes, you should indeed be worried.  Your next step should be some “analytics sleuthing” to figure out what you can do about it.  (By the way, we can help you with that!)

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