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Dissertation
What makes a good employer? Exploring employee compensation preferences through Glassdoor reviews
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Year: 2022 Publisher: Leuven KU Leuven. Faculteit Economie en Bedrijfswetenschappen

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Abstract

As a skilled workforce can be a source of considerable competitive advantage in the current knowledge economy, companies are increasingly interested in mechanisms to attract and retain talented employees. Having well-designed compensation packages is key in this endeavor, but it requires an understanding of employee preferences for non-monetary compensation. Empirical evidence on the importance of this form of remuneration remains scarce and existing research has primarily focused on the quantification of compensating wage differentials through realized job choice data or survey data. This thesis aims to measure employee preferences for job amenities in a more direct way through regressions on a dataset of Flemish employer reviews from Glassdoor. In addition, the study explores whether crowdsourced employer reviews are the key to more robust empirical support for the theory of compensating differentials. In terms of non-monetary compensation, the findings suggest that corporate culture and career opportunities are the most important determinants of overall employee satisfaction. Although the study provides qualitative evidence in favor of the hedonic theory of wages, it fails to deliver sound quantitative estimates of compensating wage differentials for the included job amenities. By highlighting the current priorities of job seekers, this paper serves as guidance for employers that want to boost hiring through their employer branding strategy.

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