Employers, don't dismiss that negative employee review

'Insider takes' can damage a company, putting off top talent and upsetting clients. Here's how to turn things around.

John was a business analyst who had worked for a couple of years at a mid-sized firm. He was bored and unfulfilled. Things at work had gone stale – no challenges, no learnings, no recognition.

An unexpected call came from a recruiter. The role on offer was at a fast-growing start-up and came with more responsibility, bigger title and a nice salary jump.

Interviews progressed smoothly enough, but John felt a lingering unease.

Before accepting the offer, he checked out the start-up's reviews on job platforms Glassdoor and Indeed: "Great opportunity. Be prepared to slave for success." "80 hr work weeks are the norm." "Sink or swim. Little to no manager guidance." "Place is like a revolving door. Nobody stays for long." "Nice title and perks but no work-life balance."

John had seen no red flags during his interviews. He wondered how he was to make sense of these reviews in the light of what seemed to be a great job opportunity.

Looking for a job has never been easy. What is the work culture like? Will I get along with my supervisor and colleagues? How will I fit in?

In the past, people sought insights from career counsellors, school seniors, teachers and family. However, word-of-mouth comments can be opinionated and depend on how well the parties know the employer.

These days, the internet and social media have made it possible for anyone to access insider knowledge about potential employers in the form of employer reviews on Glassdoor, Indeed, Jobstreet and LinkedIn.

However, there are issues about their credibility. Originating from current and former employees, they might just be unverified gossip and baseless complaints. Then again, they might be an accurate account of the true state of affairs.

How a company responds – or chooses not to respond – to the reviews does matter, as most job candidates consult employer-review sites before applying, according to Glassdoor.

It may be tempting for a company to ignore a bad review. But there are compelling reasons why this is not the right course of action.

A tale of two companies

Consider these two contrasting approaches to online reviews:

Company X, a mid-sized software company known for its innovative products, is having a hard time retaining employees. Over recent months, several negative reviews started popping up on Glassdoor and Indeed.

Complaints ranged from poor communication from leaders to unclear career development pathways and unrealistic project deadlines.

Despite the growing online criticism, Company X chose to say nothing. It believed that the reviews were written by disgruntled employees, and did not reflect reality. So no public responses, no replies on the affected review platforms, and no internal HR changes.

However, this inaction resulted in a host of issues. Prospective hires began declining interviews. Internally, employees felt ignored. Rumblings that the company was turning a blind eye towards real issues and feedback grew louder.

Several top performers discreetly started looking for jobs elsewhere, citing the same concerns that had surfaced in the employer reviews.

A key client who prided itself on ethics and workplace well-being distanced itself from Company X, after an industry blog cited employee reviews as part of a feature on company culture.

Company Y, on the other hand, actively responds to both positive and negative reviews. Both leadership and HR teams often thank reviewers for feedback and explain what changes they have made or are considering.

At the back end, the firm also consciously uses the feedback to shape policies on flexibility, diversity and career development.

These transparent, and not to mention, humble responses have resulted in an enhanced employer brand that attracts top talent in key tech and marketing labour markets.

Worth the extra time and resources

An increasing amount of evidence shows that this approach of active response is much more preferable, even with the additional investment in time and resources required for such online engagement.

In a study involving a large-scale analysis of thousands of reviews received by various employers on Glassdoor, my research team discovered that responding to reviews has become common among employers.

We also found that employers use distinct approaches to respond to negative and positive reviews.

In response to negative reviews, they used excuses, apologies and highlighted actions taken out of concern for people. For positive reviews, there were responses designed to ingratiate the company with the writers, and to highlight qualities of social responsibility and integrity.

When we investigated the impact of these responses on potential job-seekers, one thing was clear: Not responding to negative reviews resulted in the worst outcomes for employers.

Silence is read as outdated. This is a critical consideration in Singapore's tight labour market, where discerning talent weigh not just salary and job scope, but leadership transparency, diversity and work-life culture. So, the absence of a public response can be seen as a hugered flag.

This matters especially in a world where the growing talent pool comprises Gen Z and millennial workers who value authenticity and responsiveness.

We also found that just the fact of responding to reviews gave potential hires the perception that such a company would be more warm and sincere, and enjoy a highly positive reputation as an employer.

Companies that do not respond risk a fate similar to that of Company X.

Ignoring employee reviews signals neglect and an archaic, ineffective management. Such "silence" online can speak volumes, especially to current staff, job-seekers, and even customers and clients.

An opportunity to shape the brand

Responding thoughtfully –even to criticism – shows that an organisation listens, cares and is willing to grow. Employers nowadays need to be savvy at harnessing the power and reach of social media like Glassdoor and LinkedIn to shape their employer brand.

Such brands signal to job-seekers, customers, clients, and investors, and internal employee audiences what the company wants to offer and stands for as an employer.

At its core lies an employee value proposition that represents the unique rewards and benefits of working at an organisation, both tangible and intangible.

The rise of platforms featuring employee reviews makes company interactions involving such reviews readily accessible to the public, who are in the midst of forming opinions that shape future engagements with the business.

Companies would do well to follow Company Y's example of active engagement with both positive and negative reviews.

They should treat platforms like Glassdoor and Indeed as forums for shaping opinion.

So they should not just pay lip service in their response. Leaders in the organisation should ensure that internal processes are set up to effectively manage and act on such reviews.

A good example is US cloud-based software company Salesforce. Its HR and communications teams monitor and respond to online reviews. The insights from these interactions are used by management to publicly address concerns around issues like work-life balance, fairness and talent practices. This helps the company retain an image of an inclusive, forward-thinking employer working hard to build trust among current and potential employees.

Similarly, global hospitality chain Hilton not only offers specific responses to concerns about benefits and work-shift scheduling, but also uses reviews as feedback for improving training and team support practices.

The outcome is strong employer branding in terms of a strong service culture, which is reflected in employee satisfaction, which in turn boosts guest satisfaction and loyalty.

These companies demonstrate that active, transparent, authentic and purpose-driven engagement with employee reviews isn't just about optics – it's a clever, strategic tool for employer branding that can drive talent attraction, culture building and employee retention.

• Kang Yang Trevor Yu is associate professor at Nanyang Business School, Nanyang Technological University.

Source: The Straits Times