Why should boards care about employee grievances shared on platforms like Glassdoor? How do these frustrations hinder an organization’s ability to meet strategic objectives and challenge management's accountability?
Employee dissatisfaction is not a collection of isolated complaints—it’s a reflection of systemic challenges that can derail strategic goals such as innovation, operational efficiency, and long-term growth. As stewards of the organization’s success, boards of directors play a pivotal role in ensuring that leadership prioritizes these issues. The findings from 106,000 Glassdoor reviews across 2,400 companies reveal troubling patterns that demand board attention. With 75% of job seekers consulting Glassdoor before applying, these grievances have tangible impacts on reputation, talent acquisition, and retention.
The feedback points to four key areas of concern: compensation, work-life balance, leadership, and career development. Each is a critical driver of employee engagement, and collectively, they provide insight into the disconnect between leadership priorities and employee expectations. Boards must leverage these insights to evaluate management’s performance and ensure alignment with organizational objectives.
Low Compensation: Undermining Employee Trust and Engagement
Compensation dissatisfaction is pervasive, with nearly 47.7% of companies receiving complaints about low pay. Employees cited wages perceived as below market, unclear pay structures, and stagnant salaries with limited or no raises. One particularly telling review captured the sentiment: “No raises in years, but leadership keeps talking about record profits.”
Compensation isn’t just about dollar amounts—it’s about fairness, transparency, and recognition. Employees who feel underpaid are more likely to disengage, underperform, and eventually leave the organization. Compensation inequities further exacerbate this frustration. For example, women earn 80% of what men make, and the disparity is even greater for women of color. These inequities are not only ethical challenges but also legal and reputational risks.
Boards must ensure that management is addressing these issues with a structured, data-driven approach. Regular pay audits are essential to benchmarking salaries against market rates, identifying internal equity gaps, and maintaining fairness. Clear communication about pay structures and total rewards is equally important to reinforce trust. Boards should encourage management to consider performance-based bonuses and incentives as tools to recognize contributions and boost morale.
When low compensation dominates unaided employee feedback, it signals deeper issues. Employees who feel undervalued are not just passive participants—they actively disengage and seek alternatives. This turnover disrupts operations, increases recruitment costs, and erodes institutional knowledge, directly impacting the organization’s ability to execute its strategic goals.
Work-Life Balance: The Hidden Cost of Burnout
Work-life balance emerged as a major concern for 45.6% of companies, with employees frequently citing excessive overtime, unrealistic workloads, and a lack of respect for personal boundaries. Rigid return-to-office (RTO) policies have further fueled dissatisfaction. One employee expressed frustration by saying, “They say flexibility is key but demand we be in the office three days a week, even when it doesn’t make sense.”
Burnout has far-reaching consequences, including declining productivity, creativity, and engagement. It also contributes to higher turnover, which places additional strain on remaining employees and perpetuates the cycle of overwork. These issues directly undermine operational efficiency and the ability to deliver on strategic initiatives.
Boards must ensure that management is addressing work-life balance not just through policies but by rethinking productivity metrics. Traditional approaches that prioritize hours worked over outcomes achieved are outdated and counterproductive. Boards should advocate for realistic goal-setting and workload adjustments that allow employees to meet expectations without sacrificing their well-being.
RTO policies, in particular, warrant careful consideration. While collaboration and innovation benefit from in-person interactions, employees also value flexibility and autonomy. Striking the right balance between these priorities is essential for maintaining morale and engagement. Boards should assess whether management’s policies reflect an understanding of employee needs and align with broader organizational objectives.
Work-life balance isn’t a discretionary perk—it’s a cornerstone of sustainable performance. Companies that fail to address these issues risk losing top talent and damaging their employer brand, both of which hinder strategic growth.
Poor Management: The Amplifier of Problems
Leadership quality was identified as a significant issue in 26.2% of companies, with employees highlighting favoritism, micromanagement, unclear expectations, and a lack of constructive feedback. One review summed it up starkly: “Managers care about deadlines, not people. Feedback is rare unless it’s negative.”
Poor management exacerbates other workplace challenges, such as low pay and work-life imbalance. When leaders lack the skills to support and inspire their teams, employee dissatisfaction grows, engagement declines, and turnover accelerates. The root of the problem often lies in inadequate leadership development. Research shows that 85% of new managers receive no formal training, leaving them ill-equipped to navigate the complexities of managing people.
Boards must work with management to redefine leadership priorities. Good management is not about authority—it’s about trust, communication, and support. Investing in leadership development programs is essential for equipping managers with the tools they need to succeed. Training should focus on setting clear expectations, providing actionable feedback, and fostering collaboration.
Feedback is a particularly critical area for improvement. According to Marcus Buckingham and Ashley Goodall in Nine Lies About Work, thriving teams operate on a 30:1 ratio of positive to negative feedback. Leaders who focus on employees’ strengths, rather than weaknesses, create high-performing teams that drive organizational success.
Boards should also evaluate whether emotionally intelligent leadership is being prioritized. Managers who build trust, foster inclusivity, and demonstrate empathy create environments where employees feel valued and motivated. These attributes are not just “nice-to-haves”; they are essential for achieving strategic goals and maintaining a competitive edge.
Lack of Career Development: A Missed Opportunity
Career development was flagged as a significant concern by 20% of companies. Employees expressed frustration with unstructured training programs, limited internal mobility, and unclear advancement opportunities. One review summarized it bluntly: “There’s no clear plan for advancement. You’re left to figure it out on your own.”
Career growth is the second largest reason employees leave a company, trailing only compensation. Employees want to know they have a future within their organization. When opportunities for growth are lacking, they disengage or seek better prospects elsewhere. This creates a talent drain that undermines organizational resilience and succession planning.
Boards should ensure that management is taking a proactive approach to career development. Clear, personalized career progression plans are critical for helping employees visualize their future within the company. AI-driven tools can provide tailored recommendations for training, lateral moves, or upskilling opportunities, aligning individual aspirations with organizational needs.
Structured mentoring programs are another key component of effective career development. Mentors can guide employees through career transitions, help them navigate challenges, and prepare them for leadership roles. Job rotation programs also offer employees diverse experiences, broadening their skill sets and increasing their value to the organization.
Upskilling initiatives should be a cornerstone of any career development strategy. Boards should assess whether management is investing in certifications, training programs, and learning platforms that empower employees to grow. By prioritizing career development, companies can build a more adaptable workforce, enhance employee loyalty, and position themselves for long-term success.
Unaided Feedback: The Hidden Truth
The insights from Glassdoor reviews are particularly compelling because they represent unaided feedback. Employees weren’t asked to comment on pay, work-life balance, management, or career development—they chose to write about these issues because they felt strongly enough to warn others. The volume and consistency of these complaints suggest that the true scope of the problems is even larger than the data reveals.
Boards must recognize the significance of this feedback. When low compensation, poor leadership, and limited career development dominate employee reviews, it’s a clear sign that the organization is failing to meet basic expectations. These issues are not just HR challenges—they are barriers to achieving strategic goals. Addressing them requires decisive action and accountability at all levels of leadership.
Fixing the Disconnect: Five Key Priorities for Boards
1. Audit Compensation: Ensure that management conducts regular pay reviews to maintain fairness, transparency, and market competitiveness. Performance-based bonuses can reinforce employee trust and reward contributions.
2. Redefine Productivity: Advocate for a shift in focus from hours worked to outcomes achieved. Encourage policies that promote sustainable workloads and respect personal boundaries.
3. Develop Leaders: Support investment in leadership training that emphasizes trust-building, communication, and team support. Ensure managers are equipped to foster engagement and collaboration.
4. Invest in Career Growth: Champion initiatives that provide clear, personalized career paths, upskilling opportunities, and structured mentoring programs. Help employees visualize a future within the organization.
5. Foster a Culture of Recognition: Encourage management to consistently recognize and reward employee contributions. Authentic, specific praise strengthens engagement and builds trust.
The Bottom Line: Aligning People and Strategy
Employee dissatisfaction is not just an operational issue—it’s a governance challenge with far-reaching implications for an organization’s strategic success. Boards of directors have a responsibility to ensure that leadership is addressing these systemic problems and aligning talent management practices with organizational goals.
Tom Peters said it best: “Put people first.” When boards prioritize employee engagement and well-being, they create the conditions for sustainable growth, innovation, and long-term success. The question is, will your board rise to the challenge? Employees are waiting—and they’re watching.
For further insights, read Governance Implications for Disengaged Workforces and Toxic Workplaces.