Pressure Test: Quantifying the impact of positive stress on companies from online employee reviews

TL;DR

This study uses deep learning to analyze online employee reviews, quantifying positive stress in workplaces and linking it to company growth and economic indicators over a decade.

Contribution

Introduces a novel methodology to classify companies based on stress levels from employee reviews and links positive stress to higher growth and economic trends.

Findings

Positive stress companies grew 5.1 times over 10 years

Stress scores from reviews track U.S. unemployment rates

Automated language analysis can quantify workplace stress

Abstract

Workplace stress is often considered to be negative, yet lab studies on individuals suggest that not all stress is bad. There are two types of stress: distress refers to harmful stimuli, while eustress refers to healthy, euphoric stimuli that create a sense of fulfillment and achievement. Telling the two types of stress apart is challenging, let alone quantifying their impact across corporations. By leveraging a dataset of 440K reviews about S&P 500 companies published during twelve successive years, we developed a deep learning framework to extract stress mentions from these reviews. We proposed a new methodology that places each company on a stress-by-rating quadrant (based on its overall stress score and overall rating on the site), and accordingly scores the company to be, on average, either a low stress}, passive, negative stress, or positive stress company. We found that (former) employees of positive stress companies tended to describe high-growth and collaborative workplaces in their reviews, and that such companies' stock evaluations grew, on average, 5.1 times in 10 years (2009-2019) as opposed to the companies of the other three stress types that grew, on average, 3.7 times in the same time period. We also found that the four stress scores aggregated every year -- from 2008 to 2020 -- closely followed the unemployment rate in the U.S.: a year of positive stress (2008) was rapidly followed by several years of negative stress (2009-2015), which peaked during the Great Recession (2009-2011). These results suggest that automated analyses of the language used by employees on corporate social-networking tools offer yet another way of tracking workplace stress, allowing quantification of its impact on corporations.