Good for the Bottom Line: Embracing Workplace Culture & Transparency

© Glassdoor, Inc. 2016

Good for the Bottom Line: Embracing Workplace Culture & Transparency

"Dawn Lyon | VP, Corporate Affairs


Agenda Employee Satisfaction and your Bottom Line

Data-Driven Insights to Influence Employer Brand"(Interviews, Benefits, Pay Transparency)

Takeaways

Questions?


Employee Satisfaction and "the Bottom Line


Factors Influencing Employee Satisfaction

•  “Does money buy happiness?”

•  Which factors most affect"workplace satisfaction?

•  ~220K users who contributed a review and salary report


Findings

Source: Glassdoor Economic Research, 2015


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


People Are Watching


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

“

“

“


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’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 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/.


Exploring Causal Effects

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


Agenda

Employee Satisfaction and your Bottom Line


Takeaways

Questions?


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.


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


Employer Engagement Matters

Source: Glassdoor U.S. Site Survey, January 2016


Candidate Experience Matters


Interview Screens Lengthening Time to Hire

Source: Andrew Chamberlain, “Why Is Hiring Taking Longer? New Insights from Glassdoor Data,” Glassdoor Economic Research, June 2015.


Time to Hire Lengths


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

Interview Difficulty Matters


The Benefits You Invest in Matter

Source: Glassdoor Q3 2015 Employment Confidence Survey


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


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


Showcase Your Programs, Commitments & Benefits


Pay Transparency, Gaps & Reporting


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


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


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 Gender Pay Gap Survey

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


Pay Equality Matters to Employer Brands

2,400+ employers have taken pledge "on Glassdoor via Benefits portal


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”


Agenda Employee Satisfaction and your Bottom Line


Takeaways

Questions?


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.


Questions? [email protected]

glassdoor.com/research

Glassdoor.com/employerbranding

Dawn Lyon VP, Corporate Affairs

Good for the Bottom Line: Embracing Workplace Culture & Transparency

Recruiting & HR

Transcript of Good for the Bottom Line: Embracing Workplace Culture & Transparency