The “glassdoor effect”—which involves candid employee feedback—is becoming increasingly important in an age where people are speaking out against company problems online, according to a white paper from Navex Global cited by Financial Advisor.
Candid Online Feedback Can Affect How Customers View a Company’s Core Values
“The Glassdoor Effect”—named for the Glassdoor website, where employees leave anonymous company reviews— joined topics such as cyber-security, sexual harassment and whistleblowers in Navex’s “2018 Top 10 Ethics & Compliance Predictions & Recommendations,” the publication writes.
In the report, David Banks, senior content marketing manager at Navex, explores why employees turn to outside platforms, and claims that it is not “just because they fear retaliation,” but “because they receive more immediate affirmation,” according to Financial Advisor. This should be addressed, as potential customers believe ex-employees are a trusted source on a company's business practices and the treatment of employees as well as customers, according to a survey by Edelman cited by Financial Advisor.
The Navex white paper also mentions a case where a company was sued after an employee who left an “unpleasant comment” on Glassdoor was fired, the publication writes. This highlights how a lawsuit can catch media attention and create a slew of unfavorable articles for customers and prospective employees to find online, according to Financial Advisor.
Instead of limiting social media use, companies should investigate and fix the actual problems, as deleting a comment or account won’t stop the news from spreading, the publication writes. Companies should strengthen anti-retaliation policies that will allow employees to address issues internally, as well as try to replicate the support that social media provides, according to Financial Advisor. Banks believes that these new problems create a “unique challenge” for compliance programs, which will have to be addressed by companies in the future, the publication writes.
