onlycfo.io · 2023-09-06 · 1002d

Glassdoor Goldilocks Zone: How Employee Ratings Impact Hiring, Culture, and Investor Returns

The article analyzes the correlation between Glassdoor employee ratings and shareholder returns across 73 public software companies, concluding that while extremely low ratings harm talent acquisition and company performance, ratings above a minimum threshold show weak correlation with stock performance. The author identifies a 'Goldilocks Zone' where company ratings must clear a minimum bar but excessive ratings may indicate insufficient operational discipline or difficult decision-making.

6 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

CEO Approval Rating - Highest

99%percent

best-in-class

Aaron Levie (Box)

CEO Approval Rating - Lowest

47%percent

minimum

Allan Thygesen (DocuSign)

Candidate Glassdoor Review Checking Rate

50%percent

minimum

Job candidates evaluating offers

Employee Recommendation Rate

78%percent

average

Salesforce example in dataset

Glassdoor Overall Rating - Highest

4.7stars

best-in-class

Public software companies (SentinelOne, Workday)

Glassdoor Overall Rating - Lowest

3.3stars

minimum

Public software companies (Amplitude)