A recent study illuminates the significant link between employee engagement and both Glassdoor scores and stock value. Dr. Charles Scherbaum discusses the results of this analysis and provides concrete advice for systematically measuring and improving employee engagement in order to improve employer brand and financial outcomes.

1. ENGAGEMENT
THE KEY TO IMPROVING YOUR EMPLOYER
BRAND AND FINANCIAL PERFORMANCE...
How the C-Suite Can Harness the Employee Experience to
Improve the Brand and Organizational Success

2. Glint conducted a study to identify
the relationship between employee
engagement and organizational
success, using Glassdoor ratings
and stock performance as proxies.
WHAT IS THE RELATIONSHIP BETWEEN PEOPLE SUCCESS AND ORGANIZATIONAL SUCCESS?

3. The findings demonstrate that
organizations with higher
employee engagement achieve
significantly better Glassdoor
ratings and public company stock
performance.
WHAT IS THE RELATIONSHIP BETWEEN PEOPLE SUCCESS AND ORGANIZATIONAL SUCCESS?

4. WHAT IS THE RELATIONSHIP BETWEEN PEOPLE SUCCESS AND ORGANIZATIONAL SUCCESS?
Glint’s Data Science Team Analyzed:
75 companies 500,000+ employees
15 industries Stock performance
of publicly-traded
clients over a 52-
week period

5. Dr. Charles A. Scherbaum
Associate Professor of Psychology
Baruch College, City University of New York
HELPING US UNDERSTAND THE BENEFITS OF THE DATA
In the following slides, Dr. Scherbaum will talk through the
employee engagement data and its importance to help
organizations achieve tangible business results.

6. WHAT IS THE RELATIONSHIP BETWEEN
GLASSDOOR SCORES AND
ENGAGEMENT?
The analysis revealed that engagement is a critical driver of
Glassdoor scores, with companies in the top quartile of
Glint scores having, on average…

7. 35% higher
Glassdoor ratings
(4.2 vs 3.1)

8. 34 percentage
points higher
Glassdoor recommendations
(83% vs 49%)

9. 27 percentage
points higher
CEO approval
(93% vs 66%)

10. Employees at organizations with favorable (top
quartile) driver scores on Growth (learning &
development opportunities at work) and Prospects
(positive outlook on company future) have an
87% recommendation rating versus 46% for their
lower-scoring (bottom quartile) counterparts.

11. While the evidence for the impact of company
culture and engagement towards organizational
success has historically been limited, these data
provide evidence that employee feedback about
issues such as culture, empowerment, and
inclusion have a considerable relationship to an
organization’s ability to attract top talent.
“Influence the employer brand by improving the
employee experience.”
Charles Scherbaum
WHY DO WE WANT TO ENGAGE?

12. Because the top drivers of employee
engagement can vary greatly from one
organization to the next, no single key variable
accounts for the single greatest impact on
Glassdoor rating, validating Glint’s philosophy
that every organization has its own engagement
profile.
WHY DO WE WANT TO ENGAGE?
How can the C-suite use this data?

13. Glint compared the public company
stock performance of organizations
and Glint engagement scores
WHAT ARE THE FINANCIAL BENEFITS OF ENGAGEMENT?

14. Top quartile of overall Glint scores
achieved 42% higher 52-week change in
stock value than companies in the bottom
quartile
WHAT ARE THE FINANCIAL BENEFITS OF ENGAGEMENT?

15. Companies in the top quartile of
Empowerment scores had 35% higher 52-
week change in stock value compared to
companies in the bottom quartile
WHAT ARE THE FINANCIAL BENEFITS OF ENGAGEMENT?

16. Companies in the top quartile of Growth
scores had a 5x higher market cap per
employee than companies in the bottom
quartile
WHAT ARE THE FINANCIAL BENEFITS OF ENGAGEMENT?

17. These data showcase that
organizations with a highly engaged
workforce significantly outperform
those without.
“A highly engaged workforce leads to better financial
performance.”
Charles Scherbaum
HOW CAN LEADERS MAKE ENGAGEMENT A PRIORITY?

18. CEOs and CFOs must educate
executives and managers on the
significant impact of employee
engagement on organizational
success, and make improving
employee engagement a priority to
reap financial benefits and mitigate
business risks.
HOW CAN LEADERS MAKE ENGAGEMENT A PRIORITY?
How can the C-suite use this data?

19. WHY IS ACTION SO IMPORTANT?
While gathering and understanding
people date is important, action
drives results

20. Teams where individuals believe that action will
be taken tend to be significantly more engaged,
reporting 25% higher engagement scores
on average*
*Glint customer data
WHY IS ACTION SO IMPORTANT?

21. They are also 25% more likely to
recommend the company as a good place to
work, compared to those with low confidence in
action taking*
WHY IS ACTION SO IMPORTANT?
*Glint customer data

22. WHY IS ACTION SO IMPORTANT?
*Glint customer data
When managers take action to improve specific
engagement areas that are impacting their
teams, they show 7% higher scores in
those areas relative to the overall company
average*

23. These data show that managers who take
action to enhance the engagement of their
teams are able to do so and elevate team
performance.
“Taking action in targeted, consistent ways can lead
to sustained improvement.”
Charles Scherbaum
WHAT TYPE OF ACTION IS NECESSARY?

24. 1. Simply using people data to make the business case for
engagement is not enough to create an engaged culture. Let
your employees know what you have heard and what you
have done in response.
2. Building a culture of engagement starts with holding
managers accountable to take action to enhance the
engagement of their teams.
3. An engaged culture is not built in a day. Managers must take
the time to listen their employees, help guide their careers,
and help overcome obstacles to their effectiveness at work.
Simple actions make a big difference.
WHAT TYPE OF ACTION IS NECESSARY?
How can the C-suite use this data?

25. ABOUT DR. CHARLES SCHERBAUM
Dr. Charles A. Scherbaum
Associate Professor of Psychology
Baruch College, City University of New York
With a focus on on talent management, employee engagement, and analytics, Dr. Scherbaum’s
research has appeared in journals such as Personnel Psychology, Organizational Research Methods,
Educational and Psychological Measurement, Journal of Business and Psychology, and Human
Resource Management Review.
Dr. Scherbaum was one of the winners of the 2011 M. Scott Myers Award from the Society for
Industrial and Organizational Psychology as well as the 2011 Innovation Award from the International
Personnel Assessment Council for his research on cognitive ability tests. The Doctor also received a
Ph.D. in industrial and organizational psychology from Ohio University.