How Investors Use Glassdoor

According to a 2018 analysis by the Norwich Business School, which used Glassdoor rankings to examine the connection between Glassdoor UK ratings and company performance, people equal profit. Study authors explain:

“First, we find that UK firms rated highly by their current employees in terms of satisfaction achieve superior profitability (ROA) compared to those rated poorly … Second, the significant positive relationship between employee satisfaction rating and profitability indicates that similarly to the case of US firms, online employee reviews can be used to forecast the financial results of UK firms.”

It comes as no surprise, then, that innovative companies, including Unilever, Nando’s and SAP, among others, use Glassdoor UK ratings in their marketing — intriguing both potential employees and investors alike.

Get to know Glassdoor UK as a source for attracting potential investors to make the most of this valuable resource.

Glassdoor as an Alternative Data Source

As technology evolves, so does the variety of the sources investors can pull from to make decisions on where to invest their money. A CNBC report found that this has even led to a “proliferation of new ‘alternative data vendors’ that trawl through vast pools of digital information and sell it to investment groups desperate for an edge in markets.”

Glassdoor is an alternative data source that can’t be overlooked by your company. The good news is, you can take ownership of your Glassdoor profile to tell your story, ensuring that any insights gleaned from it reflect an accurate picture of your company and that it portrays your potential for investment in a positive light.

Consider these data points and how you can make sure they best reflect your business.

Fine-Tune Your Glassdoor Profile

Each month, over 67 million people worldwide visit Glassdoor. Thus, first and foremost, you want to make sure your profile is up-to-date with your latest company data, job openings and salary information. You can also take advantage of special features, including customized branded content, company photos and videos, and social media integration. Tell your brand story, get your CEO involved and give investors a reason to look into your company further.

[Related: Here’s What the Perfect Glassdoor Profile Looks Like]

Aim to Win the Top CEO Ranking

A highly ranked CEO speaks volumes for a company. It speaks to your reputation as a leader, your ability to recognize employees (which increases employee morale) and your ability to retain employees. Glassdoor’s 2019 Top CEO Ranking considers attributes, including:

  • Quantity of reviews: For UK companies, CEOs must have at least 35 ratings across the two leadership attributes from UK-based employees and at least 1,000 employees at the end of the eligibility time frame to qualify.
  • Quality of reviews: The best reviews offer valuable insights about what it’s like to work under the CEO and their leadership team. This includes mentions of what’s working well and areas for improvement, as well as giving advice to senior leadership.
  • Consistency of reviews: Glassdoor’s proprietary awards algorithm also takes into account trends over time, based on both quantitative and qualitative data.

If you want to be a top CEO to show investors your leadership team is one that drives a successful business, check out more info here.

Respond to Reviews

One of the best ways to show your value on Glassdoor is responding to reviews, both negative and positive. This shows that you’re playing an active role in managing the company’s reputation and ensuring all past and future employees understand what it means to work for your company. It also shows transparency from leadership, another important quality for investors.

Learn more about responding to reviews, and why it’s important, in our eBook, Results of Responding to Reviews.

Become a Best Place to Work

With all of this in place, you may be in the running to be on Glassdoor’s annual Best Places to Work list. The qualifications are similar to those for the Top CEO ranking, so check out Glassdoor’s 2019 ranking qualifications to prep for the 2020 season.

Employee Satisfaction Relates to Shareholder Value

Employees are doing the work — executing on projects, meeting deadlines and in many cases, bringing in new clients/customers and keeping your current ones happy. If these employees are excited about their work and engaged in their jobs, it stands to reason that they’ll work harder, allowing the company to grow. This is exactly what the Norwich Business School uncovered in their analysis.

As further proof, from 2009 to 2014, companies identified as Best Places to Work broadly outperformed the S&P 500, as well as the overall market by 115.6%. Not to mention, when named a Best Place to Work, companies saw a roughly .75% jump in stock returns during the ten days after the announcement — a small but statistically significant effect.

If you want your stock to perform like one of our Best Places to Work — and attract investors — consider the four areas every company on the 2017 list had in common:

A clear mission statement: According to Deloitte, mission-driven companies see higher levels of innovation and retention, 30 percent and 40 percent respectively. More importantly, they’re often found to be first or second in their market segment.

A thriving company culture: Company culture impacts company success, yet only eight percent of British employees are engaged at work according to Gallup, who finds that this is a product of weak company culture within the UK.

Empowered employees: Employees who are trusted to play to their strengths and do their job without approval from managers are able to innovate and take risks that push the business ahead of competitors.

A priority on transparency: Aside from being transparent within the walls of your company, we find that transparency can be seen publicly by your willingness to engage on Glassdoor and respond to reviews. Keep in mind, 66 percent of Glassdoor users agree that seeing an employer respond to a review improves their perception of the company, which means this transparency is critical.

Intrigue Investors With Your Glassdoor Page

Use your Glassdoor page as another way of showcasing a happy and healthy company to investors. When your page is up-to-date and employees are regularly sharing valuable and honest reviews, your business benefits. Prioritize this as a company as one simple growth strategy that can make a significant impact.

Learn More: 

The ROI of Employer Brand