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Are Glassdoor reviews correlated with strong corporate performance?

Glassdoor, one of my favorite tools in SRI/Impact Investing, has announced it will be taken over by Recruit Holdings for $1.2Bn.    Recruit Holdings, thankfully, has said it will maintain Glassdoor (a California company founded 10 years ago) as an independent entity.  It will utilize Glassdoor's tool in its recruiting work (which is headquartered in Japan).

The Glassdoor story reminded me that it is such a powerful tool not only for job-hunting (as mentioned above) but to notice happy employees and their relationships with their employers.  This is a key tool I use to detect employee satisfaction.  I examine the company rating (1 worst through 5 Best) as well as a historical evolution and trends.  Many of our readers are familiar with Glassdoor so I will leave it up to you to get to know their offerings.  The key takeaway you should know is that reviews cannot be deleted.  Sure, some companies arm-twist new employees to post rosy reviews, but historical reviews are not deleted.


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