Happy Employees, Stronger Returns: Using Glassdoor & Indeed in Your Investment Strategy

Max Teh
Jun 23, 2024
3 min read

Updated: Sep 21

KEYPOINTS:

🔑 Employee insights are an investor’s edge — Glassdoor and Indeed ratings reveal culture, morale, and hidden risks that financials can’t show.

🔑 Strong cultures attract top talent — Companies like Microsoft and Alphabet prove how a great reputation drives faster execution, innovation, and long-term advantage.

🔑 Culture can signal future performance — Happy, motivated employees often translate to higher productivity, innovation, and sustainable business growth.

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.

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.

A company by definition is a collective of individuals. Its success hinges on the harmony and synergy among these individuals. A cohesive workforce, united by a shared purpose, is the cornerstone of a thriving enterprise.

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

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).

Tesla's Glassdoor ratings failed all my Glassdoor benchmark as of 23June2024.

While Glassdoor is powerful, it isn’t the only lens into a company’s culture. Another major site to check is Indeed.com, which currently attracts up to 193 million monthly organic visitors (Semrush) compared to Glassdoor’s 8.3 million. Since it’s one of the largest job platforms globally, it offers a wider pool of employee voices.

What to Look for on Indeed.com

Snapshot Tab
- CEO approval rating (preferably ≥70%)
Satya Nadella, CEO of Microsoft has 72% CEO approval rating on Indeed
- Work wellbeing score, which covers Happiness, Purpose, Satisfaction, Stress-free
  Dutchbros coffee scores high on various work wellbeing metrics on Indeed.
Ratings Tab
- Overall rating (aim for ≥4)
- Factor breakdowns: Work-life balance, Pay & benefits, Job security & advancement, Management, Culture
- Pro tip: filter by Lowest rating and check for recent new 1-star reviews. If they’re scarce, it suggests the company is addressing past issues. Still, skim them for hidden red flags.

This dual-lens approach (Glassdoor + Indeed) helps you avoid blind spots and gives a more balanced view of a company’s employee culture.

A Tesla-Sized Lesson Learned

Full disclosure: I've made the mistake of overlooking Glassdoor. Tesla, a significant part of my portfolio in the past, 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.

Meta’s Lesson: How Layoffs Hit Culture Scores

Meta is another example worth noting. After its 5% layoffs in February 2025 , Glassdoor & Indeed;s ratings dipped, reflecting shaken employee confidence. Why does this matter? Because top-tier talent, seeing uncertainty, may choose to join other big tech firms instead. A company that loses its allure as an employer risks a brain drain, which can slow innovation and weaken its long-term competitive edge.

The Edge of Attracting Top Talent: Microsoft & Alphabet

Companies like Microsoft and Alphabet illustrate the upside of maintaining strong employer reputations. Their status as desirable workplaces for top talent creates a virtuous cycle:

They attract the brightest minds.
Execution becomes faster and more seamless.
They can capture market trends quickly and roll out features that maintain their competitive edge.

For investors, this means not just stability but also sustained innovation power — a hidden growth driver that financial metrics alone might not reveal.

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!