Glassdoor provides an online platform for employment where users can review their current and former employers. In addition, employers can market to job seekers and publish open positions on the site.
Business model for Glassdoor is based on the sale of premium services to employers. Glassdoor earns money from advertisements for jobs, branding of employers and advertising of job advertisements.
In 2007, Glassdoor was founded by three ex- Expedia executives The company was immediately successful. In the year 2018, Glassdoor was acquired in an all-cash deal worth $1.2 billion. The deal was made by Japanese company Recruit Holdings. Recruit Holdings.
How Glassdoor Works
Glassdoor provides an on-line hiring marketplace which allows users to examine their current and past employers. Additionally, employers can post job openings on the platform.glassdoor.com
Today, the site serves as a search engine for all information that is related to any particular business. In addition to reviews, users can also post information on:
- The amount a company pays for open job
- The interview questions are being were
- Benefits offered by the company you work for, i.e. extra pay or bonus, holidays days as well as company-sponsored trips, etc. fort
Users can also evaluate two companies using aspects like the balance of work and life, career opportunities and culture, as well as executive approval. In addition, Glassdoor makes suggestions on what companies to look out for depending on the person’s interests and employment experience.
For employers there are a variety of products and features aimed to improve the likelihood of recruiting new employees. This includes things like profiles of branding for employers as well as job ads and benchmarking your company against its competitors, or the removal of ads that compete with the profile of the company.
A Brief History of Glassdoor
Glassdoor was founded on the 7th of July 2007 Robert Hohman, Tim Besse as well as Expedia and Zillow founder Rich Barton.
After completing the Computer Science studies at Stanford, Hohman went on to become the engineer for Microsoft. Then, he was one of the first employees working for Microsoft Expedia Travel Services that would later be renamed Expedia.com.
Expedia was first listed in 1999, and was able to continue to purchase smaller travel businesses over the next few years. One of the deals, Hotwire, became a later destination for Hohman who helmed the company up to the end of 2006.
Then, Hohman made a somewhat unorthodox career choice. Hohman quit the job he was working at Hotwire in order to join World of Warcraft for a whole year.
In an interview he conducted an interview to Forbes, Hohman stated “There’s an maximum level that you can reach on World of Warcraft. I was able to achieve this on the Tuesday. I began Glassdoor on the following Wednesday. I can remember it being 70 levels.”
Hohman was introduced to Barton and Besse during his time working for Expedia. In actual fact, Barton became somewhat of an advisor to Hohman and the two maintained close contact after his departure from Expedia.
It was Barton who had the idea of Glassdoor. In 2007, while Barton was still the CEO of Zillow, Barton had accidentally sent a file containing details about salary and stock to a printer located at the center of his office. The assistant quickly ran to save the documents before anyone else was able to look over the documents.
This small oversight led him to think. Who would their job not want to have their earnings and bonuses revealed? It would just expose those who are underpaid or who don’t perform their work properly.
With that of their own, the group began to ask acquaintances as well as former coworkers to write reviews on the new prototype website. They even provided Silicon Valley engineers the chance to win an iPod as a reward for handing reviews and salary details.
These growth hacks definitely have paid off. As the site was officially began Beta public in the month of June 2008, there were 250 companies registered on its website, with more than 3300 reviews.Wayback Machine
The outcomes of the day’s launch include More than 1.2 million views on the site, more than 10,000 salary reports that were added as well as 3,000 new companies being joined to the platform and servers that have crashed because of the influx of traffic.
One year later In 2009, reviewers increased to 225,000 and more than 23,000 businesses joining the site.
In the years to come The company continued to develop new features for its platform. Examples include the capability to include interview questions, or enhanced profiles for employers. Additionally, funding rounds helped help the company grow.
After speculation regarding an IPO were circulating for many years, the company finally discovered its exit on the private market. In the year 2018, Japan-based Recruit Holdings purchased the company for $1.2 billion of cash.
Despite the company’s rapid growth, the path to international recognition hasn’t come without obstacles. A report published in the year 2019 published by The Wall Street Journal revealed how businesses manipulated their Glassdoor rating system by requiring their employees to submit positive reviews.
In addition, in the year 2019 Hohman removed himself from his role as the CEO of the company, handed over the reins to Christian Sutherland-Wong. The executive has worked for the company for a while. There are no future career options in gaming are confirmed as of yet.
Presently, Glassdoor welcomes over 50 million users each month through its platform. Over 10 million job ads as well as 60 million user reviews salary and (interview) information have been published up to now. The company has more than 600 employees in 11 offices around the globe.
In case you’re wondering the Glassdoor’s (former) employees have given the company a total score of 3.9 (on an average of five) and its new CEO Sutherland-Wong has a resounding approval rating of 64 percent.
How Does Glassdoor Make Money?
Glassdoor has grown from its beginnings when it was just an online platform for employees to review their past or current employers.
Today, the company provides numerous solutions aimed to help employers locate suitable candidates. Therefore, monetization happens from the corporate side as job seekers and employees are able to continue using the free platform.
Let’s look at the various ways to earn money from Glassdoor in the next section.
Job ad posting
Glassdoor employs the freemium system to operate its job listing product. The initial three jobs are completely posted for free. If you post more than the threshold of free, a fee of $249 is charged for each posted listing.
The model above is available to small companies. For larger, medium companies, as well as enterprise ones larger companies, more sophisticated packages are provided to satisfy the requirements of these companies.
The next monetized feature is advertisements for jobs. These ads help employers get more exposure for their ads by placing them at the top of the feed for jobs.glassdoor.com
Job advertisements are a part of the premium service which large and medium-sized enterprises can sign up to. The cost of the service is contingent on the quantity of jobs advertised and advertised.
Employer branding is a way to improve how the company’s image is displayed in Glassdoor. Employer branding optimizes how a company is presented on Glassdoor platform. Some of the features are:
- The ability to highlight an excellent review and elevate it up the ranks of a feed from a company’s
- Showing off a business through brand-name messages, photos and videos
- Eliminating advertisements from competitors’ profile
- Employers can be targeted, not only through Glassdoor, but also on the Glassdoor site, but all over the internet with brand ads
Prices are provided upon an inquiry. If they are available the event that they are included, they will be part of a larger package offered to the client.
Glassdoor Funding, Valuation & Revenue
As per crunchbase, Glassdoor has raised the sum of $204.5 million over 10 rounds of Venture Capital financing.
The last time that the company’s value was disclosed was when it was acquired in the year 2018. The Japanese-based Recruit (the the same one which paid $1 billion for Indeed back in 2012) purchased Glassdoor for a total amount of $1.2 billion of cash.
Some of the previous investors in the company include Battery Ventures, CapitalG, Tiger Global Management, Sutter Hill Ventures, among others. Recruit Holdings does not publicly provide any figures on revenue for Glassdoor. The company has reported revenues of approximately $22 billion in fiscal year of 2018. 14.1 percent (or approximately $3 billion) could be attributed on the HR technologygroup that includes Indeed as well as Glassdoor.