Post on 09-Jan-2017
© Glassdoor, Inc. 2016
Good for the Bottom Line: Embracing Workplace Culture & Transparency
"Dawn Lyon | VP, Corporate Affairs
© Glassdoor, Inc. 2016
Agenda Employee Satisfaction and your Bottom Line
Data-Driven Insights to Influence Employer Brand"(Interviews, Benefits, Pay Transparency)
Takeaways
Questions?
© Glassdoor, Inc. 2016
Factors Influencing Employee Satisfaction
• “Does money buy happiness?”
• Which factors most affect"workplace satisfaction?
• ~220K users who contributed a review and salary report
© Glassdoor, Inc. 2016
Themes of Low-Rated Workplaces
Cons at low-rated companies:
Management / senior leadership "consistently top complaints at low-rated companies
Source: Glassdoor Economic Research, 2015
© Glassdoor, Inc. 2016
Investors Increasingly Monitor Employee Sentiment
We look for companies that have solid employee rankings and want to buy!companies that have improvements in employee opinions. Happy and engaged!
employees lead to more wins and more sales opportunities.
We regularly check Glassdoor ratings on companies we cover.
Companies with high employee satisfaction seem to provide less volatile returns.
– Paul Ebner, BlackRock Portfolio Manager
– JB Marwood, Marwood Capital
– Ron Josey JMP Securities Analyst
“
“
“
© Glassdoor, Inc. 2016
Bottom Line: Culture Pays Off
• 7 years of “Best Places to Work” lists "(2009-2014)
• Compares stock performance of "BPTW public companies to the "S&P 500 • Buy and hold
• Rebalancing
• Elimination
• Low-rated companies as a control group Source: Chamberlain, Andrew (2015). “Does Company Culture Pay Off? Analyzing Stock Performance of ‘Best Places to Work’ Companies,” online at glassdoor.com/research/.
© Glassdoor, Inc. 2016
Glassdoor’s “Best Places "to Work” list outperformed the S&P by
Lowest rated companies underperform S&P by
29.5%
Source: Chamberlain, Andrew (2015). “Does Company Culture Pay Off? Analyzing Stock Performance of ‘Best Places to Work’ Companies,” online at glassdoor.com/research/.
Findings:
122%
© Glassdoor, Inc. 2016
Glassdoor Winners Outperform Fortune GPTW
Source: Chamberlain, Andrew (2015). “Does Company Culture Pay Off? Analyzing Stock Performance of ‘Best Places to Work’ Companies,” online at glassdoor.com/research/.
© Glassdoor, Inc. 2016
Exploring Causal Effects
Source: “Family Firms, Employee Satisfaction, and Corporate Performance”, University Kansas
© Glassdoor, Inc. 2016
Agenda
Employee Satisfaction and your Bottom Line
Data-Driven Insights to Influence Employer Brand"(Interviews, Benefits, Pay Transparency)
Takeaways
Questions?
© Glassdoor, Inc. 2016
Glassdoor, BPTW & Industry Average Ratings Average
Glassdoor Rating BPTW 2016 Finance Tech Retail
Overall 3.2 4.0 3.3 3.5 3.1
Career Opportunities 3.0 3.7 3.1 3.3 2.9
Comp & Benefits 3.2 3.9 3.3 3.4 2.8
Culture & Values 3.2 4.0 3.3 3.5 3.1
Senior Leadership 2.9 3.6 3.0 3.2 2.7
Work-Life Balance 3.3 3.6 3.4 3.5 3.0
CEO Approval 69% 93% 76% 74% 63%
Recommend to friend 58% 82% 60% 65% 52%
Positive Business Outlook 39% 69% 51% 56% 41% Ratings by industry based on reviews submitted between 9/13/15-9/14/16.
© Glassdoor, Inc. 2016
Recurring Themes of High-Rated Companies "
talented/smart people great/good benefits "
fun learning
work environment company culture work/life balance professional development
great company great products
interesting work great pay flexible work cutting edge
© Glassdoor, Inc. 2016
Interview Screens Lengthening Time to Hire
Source: Andrew Chamberlain, “Why Is Hiring Taking Longer? New Insights from Glassdoor Data,” Glassdoor Economic Research, June 2015.
© Glassdoor, Inc. 2016
Source: Glassdoor Economic Research (www.glassdoor.com/research)
Interview Difficulty Matters
© Glassdoor, Inc. 2016
The Benefits You Invest in Matter
Source: Glassdoor Q3 2015 Employment Confidence Survey
© Glassdoor, Inc. 2016
Core Benefits Drive Employee Satisfaction Most
Top 5 Benefits by Correlation with Overall Satisfaction with Benefit Packages (on a scale of 0-1.0)
Rank Benefit Type Correlation
1 Health Insurance 0.7
2 Vacation & Paid Time Off 0.6
3 Pension Plan 0.6
4 401K Plan 0.6
5 Retirement Plan 0.5
Source: Glassdoor Economic Research, June 2016
© Glassdoor, Inc. 2016
Ancillary Benefits Matter Less
Top 5 Benefits by Correlation with Overall Satisfaction with Benefit Packages (on a scale of 0-1.0)
Rank Benefit Type Correlation
7 Maternity & Paternity Leave 0.5
12 Dependent Care 0.4
14 Stock Options 0.4
16 Free Food & Snacks 0.4
30 Employee Discounts 0.3
Glassdoor Economic Research, June 2016
© Glassdoor, Inc. 2016
U.S. Pay Reporting
• EEO-1 form will add summary data reported by pay ranges and hours worked
• The report on 2017 employment information would be due by March 31, 2018
• Unadjusted and adjusted pay gap analysis is important
© Glassdoor, Inc. 2016
The Gender Pay Gap is Real
24.1% “unadjusted pay gap”
5.4% “adjusted pay gap”
Source: Glassdoor Economic Research: Demystifying the Gender Pay Gap - US figures, March 2016
Age Education Years experience Job title Employer Location
© Glassdoor, Inc. 2016
Largest Pay Gaps
Source: Glassdoor Economic Research: Demystifying the Gender Pay Gap - US figures, March 2016
“Adjusted” Gender Pay Gap by U.S. Industry"(Percentage Higher Average Male Pay)
© Glassdoor, Inc. 2016
Glassdoor Gender Pay Gap Survey
Source: Glassdoor Survey, The Global Gender Pay Gap– Is It Real?, October 2015
© Glassdoor, Inc. 2016
Pay Equality Matters to Employer Brands
2,400+ employers have taken pledge "on Glassdoor via Benefits portal
© Glassdoor, Inc. 2016
Glassdoor Pay Analysis by Gender
Age Years experience Job title & department Employer Location" Performance 0.05%
adjusted pay gap Source: Glassdoor Internal Analysis, April 2016
~20% “unadjusted pay gap”
© Glassdoor, Inc. 2016
Agenda Employee Satisfaction and your Bottom Line
Data-Driven Insights to Influence Employer Brand"(Interviews, Benefits, Pay Transparency)
Takeaways
Questions?
© Glassdoor, Inc. 2016
Data-Driven Takeaways Culture & Values, Career Advancement and Senior Leadership influence satisfaction more than Compensation & Benefits.
1
2
3
4
5 Rising pay transparency and interest in pay equality provides opportunity to differentiate employer brands.
Candidate experience is part of your employer brand. Difficult interview process (not too high) leads to better matches and higher satisfaction.
Engagement influences opinions of your companies. Showcase benefits, highlight pledges & commitments and respond to reviews.
There is not just a correlation, but a causal link between employee sentiment and the bottom line. Investors and other stakeholders are already monitoring your employer brand.