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Why Happy Employees Make Happy Investors: The Power of Glassdoor Ratings

KEYPOINTS:

🔑 Happy employees are the backbone of a successful company, and their voices on Glassdoor can be your secret weapon.

🔑 Invest in a company culture that fosters talent, innovation, and ultimately, your returns.

🔑 Don't repeat my Tesla mistake - Glassdoor ratings offer a window into a company's soul, use them to build a portfolio with a human edge.


Disclaimer: This communication is provided for information purposes only and is not intended as a recommendation or a solicitation to buy, sell or hold any investment product. Readers are solely responsible for their own investment decisions.

 

In our quest to build a winning portfolio, we often focus on financial metrics. 

But what about the people behind the numbers?  

A company's culture and employee satisfaction are crucial factors often overlooked by investors. 


Here's why Glassdoor ratings deserve a spot in your investment toolbox.

Your Company's Biggest Asset: Its People

Let's be honest, a company is only as good as its workforce. A positive work environment attracts and retains top talent.  Happy, motivated employees are more productive, innovative, and invested in the company's success. This translates to a stronger bottom line, which is music to any investor's ears.


Looking Beyond the Averages: Setting the Glassdoor Benchmark

Not all Glassdoor ratings are created equal. Here are some key benchmarks to consider:

  • Overall Rating:  Aim for companies with ratings above 4. 

  • "Would Recommend to a Friend" Score:  Look for companies where at least 75% of employees would endorse their workplace.

  • Department-Specific Ratings:  Dig deeper into specific areas like career opportunities (ideally above 4), senior management approval (above 4), compensation and benefits (above 4).


A Tesla-Sized Lesson Learned

Full disclosure: I've made the mistake of overlooking Glassdoor. Tesla, a significant part of my portfolio, is a prime example.  Their 3.5 rating, coupled with low "recommend to a friend" and CEO approval scores, along with subpar work-life balance and senior management ratings, were red flags I ignored.


Don't Repeat My Mistake: Embrace the Power of Employee Insights

By considering Glassdoor ratings alongside financial metrics, you're gaining valuable insight into a company's heart and soul: its people. 


Invest in companies that prioritize their employees, and you might just be investing in your future financial success.


Bonus Tip: Remember, Glassdoor reviews offer a snapshot. Look for consistent trends over time to get a clearer picture of the company culture.


By incorporating these tips, you'll be well on your way to building a winning portfolio that factors in both the numbers and the human element behind them. Remember, happy employees make happy investors!

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