Two-Way Markets: A Greater Level of Parity Makes for a Better Workplace

Young disruptors, from Uber to Airbnb, have been transforming the dynamics of the service industry for some time now. Consumers are themselves being rated in the same way that they rate the services they use. Are they a good resident? Are they a pleasant rider? But what about for businesses? Here, Mark Di-Toro from Glassdoor explains how accountability is the first step to a better working culture and the key to unlocking the recruitment crisis facing many industries.   MDT: The Internet is often touted as a great democratiser. It was built that way—with people, not corporations or politicians in mind. It has its shortcomings, but its founding objectives were to open a dialogue between peoples not previously introduced and to make the world a more transparent and informative place. More recently, enterprises have introduced a new measure of accountability: the two-way rating system, referred to by economists as ‘two-sided’ markets. In this environment, both sides have something to lose for poor conduct. If you arrive at an Airbnb rental to a dilapidated apartment, the owner can have their listing removed. If, however, you – as the visitor – spend the weekend like a rock star from the ‘70s, throwing TVs out of windows, it’s unlikely you’ll be successful in finding another holiday home on that platform any time soon. An episode of Charlie Brooker’s brilliant Black Mirror series explored a dystopian future when the compulsion to rate a person’s behaviour gets out of control. But the truth is that representations of a candidate’s character or talent – particularly in the job market – have long been an especially difficult reputation to shake. Of course, businesses should be held to the same standard as their employees. Of course, that equilibrium of accountability should be upheld. Of course, a greater level of parity makes for a better, more productive workplace. Besides anything else, the jobs market now is far too competitive for employers not to stand up and try to be better. Quite simply, if they don’t, they'll lose the best talent and get left behind. But it’s also good for industry. Internal advocates are one of the most powerful tools that most businesses, large or small, have at their disposal—and probably the most overlooked. Positive reviews are noticed by competitor companies who will want to emulate success—raising standards across the board. The analysis of big-data is also changing the way fund-managers invest in companies. If you can build an effective employer brand, you'll attract an informed candidate which translates into a better hire who is more likely to stay and more likely to be happy. What builds an effective employer brand? The digital age affords candidates an impression of a company not only based on its polished public ‘brand’, but on an access-all-areas tour of its purpose, practices and work ethic. Not to mention an unbridled potential to learn of its successes and failures in the eyes of its employees. This is where fears around bad reviews are proven to be unfounded. We know, for example, that three quarters of Glassdoor users are more likely to apply for a job if they see that the employer is actively managing their employer brand: responding to reviews – good and bad – updating their profile, sharing updates. The best talent is discouraged by employers that aren't being seen to care about their image. We also know that over 70 per cent of Glassdoor users say they are at least ‘happy’ or ‘satisfied’ with their current company, which puts to bed any notion that Glassdoor is just a hotbed for disgruntled employees. It simply isn’t. We always ask for both ‘pros’ and ‘cons’, so it’s impossible to only leave negative reviews. The consistent partner of success is transparency. A brand’s participation in its own reputation is the best example of how it conducts itself in business. It is possible to judge responsiveness, intuitiveness, ethics, equity and level of trust from the way a brand chooses to respond to its critics. A commitment to your employer brand, therefore, has never been more commercially consequential.

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You can listen to Mark discussing the value of the employer brand on the latest Eulogy Behind the Headlines podcast here: http://bit.ly/2rrcneY