Managing Online Reviews: How Employers Can Turn Criticism Into a Talent Advantage

Why It Matters

Online employer reviews can make or break a company’s reputation among jobseekers. This study reveals how thoughtful responses, not silence, can turn criticism into credibility.

Key Takeaways

• Employers that respond to reviews attract more applicants than those that stay silent.
• Apologies and prosocial actions create perceptions of sincerity and warmth, boosting reputation.
• Perceived warmth and genuineness matter more to jobseekers than technical competence.
  

The Power of the Online Word-of-Mouth

In today’s job market, company image is shaped as much by employees as by employers. Platforms like Glassdoor, Indeed, and LinkedIn have become open forums where staff and ex-employees freely post about their experiences. While such transparency helps jobseekers, it also leaves organisations exposed to unfiltered criticism that can linger online indefinitely.

Employers often feel powerless against these anonymous comments, but they need not be. New research shows that how a company responds to reviews can meaningfully influence jobseekers’ perceptions. The study uses machine learning to analyse thousands of employer replies, which were subsequently used in two field experiments to test their effects on talent attraction.

Findings challenge the belief that companies should simply ignore negative feedback. Instead, responding, and responding well, signals that the organisation is accountable, empathetic, and sincere in its values.

What Works When Reviews Go Wrong

The researchers first used text-mining techniques to categorise how employers typically respond to online reviews. They identified three common tactics for handling negative feedback – making excuses, apologising, and demonstrating prosocial behaviour such as taking corrective action – and two tactics for responding to positive reviews: expressing appreciation (ingratiation) and highlighting the company’s values or social responsibility (exemplification).

They then tested these approaches in two experiments; one with undergraduates and another with experienced professionals; to see how different responses shaped perceptions of the company’s warmth, sincerity, and competence, as well as jobseekers’ intentions to apply.

Across both studies, one message was clear: silence is the worst strategy. Companies that failed to reply to negative reviews suffered the poorest reputation and the lowest applicant interest. By contrast, responses that acknowledged the issue or demonstrated goodwill performed far better.

Among students, apologising or offering an explanation helped soften negative impressions. But for working professionals, prosocial actions, such as pledging improvements or addressing the problem directly, carried greater weight. These actions signalled empathy and integrity, helping restore trust even after criticism.

Warmth and Sincerity Win Over Talent

Interestingly, jobseekers cared less about whether a company appeared highly competent. Instead, they valued warmth and sincerity; qualities that signalled the firm’s genuine concern for their employees.

Employers who replied with understanding and humility were perceived as trustworthy and caring, which in turn boosted their reputation and attractiveness as a workplace. “Candidates interpret employer responses as signals of what the company stands for,” explains A/P Trevor Yu. “A sincere, human response goes much further than a defensive one.”

When the researchers examined replies to positive reviews, they found that responses celebrating shared values or social responsibility could further enhance appeal, though their effects were weaker among seasoned professionals. Simply thanking reviewers without substance made little difference.

Overall, the studies suggest that employer branding is no longer a one-way broadcast. It is a conversation – one that reflects an organisation’s culture, leadership tone, and values in real time.

From Reputation Risk to Recruitment Edge

For business leaders, the implications are practical and urgent. In an era where employer reviews are as influential as customer ratings, organisations need a clear playbook for managing them.

First, responding is non-negotiable. Ignoring feedback leaves an information vacuum that potential applicants may fill with doubt. Even a brief, respectful acknowledgment of concerns signals that the company listens and cares.

Second, tone matters more than polish. Responses that sound overly defensive, corporate, or scripted risk coming across as insincere. Empathy and openness resonate more strongly than perfect phrasing.

Third, follow-through strengthens credibility. When employers publicly outline steps to improve, such as enhancing career development or addressing workplace culture, jobseekers take note. This willingness to learn from criticism can transform a reputation risk into a recruitment advantage.

Ultimately, the study underscores that digital transparency cuts both ways. Reviews can damage a company’s image, but they also offer a rare opportunity to demonstrate accountability and humanity; qualities that today’s talent values most.

Business Implications

Companies can no longer rely solely on glossy employer branding campaigns. How they interact with reviewers online sends stronger, more authentic signals about who they are. By responding with sincerity and empathy, firms not only repair reputational harm but also attract candidates who share their values. In the competition for talent, warmth and integrity have become powerful differentiators.

 

Authors & Sources

Authors: Kang Yang Trevor Yu (Nanyang Technological University), Kim Huat Goh (Nanyang Technological University), Clara Wen Lin Soo (Nanyang Technological University & Michigan State University, and Sitong Yu (Nanyang Technological University)

Original Journal: Journal of Applied Psychology

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