Good for the Bottom Line: Embracing Workplace Culture & Transparency Dawn Lyon, VP, Corporate Affairs at Glassdoor

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Good for the Bottom Line:
Embracing Workplace Culture & Transparency
"
Dawn Lyon | VP, Corporate Affairs

2. © Glassdoor, Inc. 2016
Agenda
Employee Satisfaction and your Bottom Line
Data-Driven Insights to Influence Employer Brand"
(Interviews, Benefits, Pay Transparency)
Takeaways
Questions?

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Employee Satisfaction and "
the Bottom Line

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Factors Influencing Employee Satisfaction
• “Does money buy happiness?”
• Which factors most affect"
workplace satisfaction?
• ~220K users who contributed
a review and salary report

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Findings
Source: Glassdoor Economic Research, 2015

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Findings
Source: Glassdoor Economic Research, 2015

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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

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People Are Watching

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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
“
“
“

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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/.

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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%

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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/.

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Exploring Causal Effects
Source: “Family Firms, Employee Satisfaction, and Corporate Performance”, University Kansas

14. © Glassdoor, Inc. 2016
Agenda
Employee Satisfaction and your Bottom Line
Data-Driven Insights to Influence Employer Brand"
(Interviews, Benefits, Pay Transparency)
Takeaways
Questions?

15. © 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.

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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

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Employer Engagement Matters
Source: Glassdoor U.S. Site Survey, January 2016

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Candidate Experience Matters

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Interview Screens Lengthening Time to Hire
Source: Andrew Chamberlain, “Why Is Hiring Taking Longer? New Insights from Glassdoor Data,” Glassdoor Economic Research, June 2015.

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Time to Hire Lengths

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Source: Glassdoor Economic Research (www.glassdoor.com/research)
Interview Difficulty Matters

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The Benefits You Invest in Matter
Source: Glassdoor Q3 2015 Employment Confidence Survey

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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

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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

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Showcase Your Programs, Commitments & Benefits

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Pay Transparency, Gaps & Reporting

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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

28. © 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

29. © 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)

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Glassdoor Gender Pay Gap Survey
Source: Glassdoor Survey, The Global Gender Pay Gap– Is It Real?, October 2015

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Pay Equality Matters to Employer Brands
2,400+ employers have taken pledge "
on Glassdoor via Benefits portal

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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”

33. © Glassdoor, Inc. 2016
Agenda
Employee Satisfaction and your Bottom Line
Data-Driven Insights to Influence Employer Brand"
(Interviews, Benefits, Pay Transparency)
Takeaways
Questions?

34. © 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.

35. © Glassdoor, Inc. 2016
Questions?
dawn@glassdoor.com
glassdoor.com/research
Glassdoor.com/employerbranding
Dawn Lyon
VP, Corporate Affairs