Introducing Two Sigma Impact’s Good Job Score Assessment Tool

by Two Sigma Impact Team
Man working in greenhouse in garden center, looking at camera
The Good Job Score (GJS) Assessment Tool is an open source, standardized instrument to help investors, management teams, and workers measure job quality.

What makes a good job “good?”

The Two Sigma Impact team believes that helping companies create not only more jobs, but better jobs, can unlock previously untapped sources of value. Defining and quantifying what actually makes a job “good,” however, has long been a challenge for data scientists, managers, worker advocates, and others.

That’s why Two Sigma Impact set out to define and measure what a “good job” is, in a standardized, scientific way that is useful to investors and companies, and that is broadly replicable over time and across industries. The result is the Good Job Score (GJS) Assessment Tool, Two Sigma Impact’s core metric for evaluating job quality at companies.

A novel approach to gauging job quality

The GJS is derived from the voices of workers and serves as a novel data source (alongside the more traditional financial and operational metrics) that provides a consistent quantitative measure of a previously hard-to-define concept. A company’s GJS informs the value-creation strategies and tactics that the Impact team seeks to align on with management teams, to grow healthy companies.

Sample Good Jobs Scorecard

Impact worked with Two Sigma’s Sustainability Science team, which provides data science expertise for ESG and social impact efforts, and a  professional services firm, to develop the GJS Assessment Tool through rigorous research and methodologies—outlined in this paper—aiming to ensure it effectively measures a company’s job quality and fills measurement gaps in this space.

The team also sought to ensure that the tool is unbiased across employee demographics and characteristics, valid across multiple sectors, and easy for companies to deploy and track over time.

A valuable tool for investors, management teams, and workers

The Two Sigma Impact team believes the GJS Assessment Tool can prove valuable to three core main stakeholder groups:

  • Investors, to help inform company valuations and investment decisions, and to help them hold management teams accountable for job quality once they have invested.
  • Company management teams, to enhance data-driven understanding and accountability that point the way to action. Impact believes it also can serve as an early warning indicator that provides the ability to understand disparities across employee cohorts on different job dimensions, enables benchmarking vs. competitors, and can help demonstrate return on human capital investments.
  • Workers, to better advocate for their needs with objective metrics and benchmarks, and to make it easier for workers to choose the best employers—further heightening management accountability.

Next steps

Two Sigma Impact has open-sourced the tool, making it freely available for companies to use to help measure and improve job quality within their own organizations.

To learn more

  • Visit goodjobscore.com to better understand the GJS methodology and scoring, or to begin implementing the GJS at your company.
  • Download Introducing the Good Job Score Assessment Tool below.
Download Paper

Footnotes

1. The GJS Assessment Tool represents Two Sigma Impact’s current approach to evaluating and monitoring companies for job quality, which Two Sigma Impact believes is an important value creation metric. The GJS Assessment Tool is provided for illustrative purposes and is intended to supplement, and not replace, the quantitative and qualitative evaluation of a company’s employment characteristics and other corporate operational metrics. There can be no guarantee that use of the GJS Assessment Tool will achieve any of the objectives described herein. Other analytical frameworks could produce different results based on selection of different inputs or weightings than those developed by Two Sigma Impact. The GJS Assessment Tool is in its preliminary stages and its parameters and output are expected to be modified, in certain instances materially, over time. Please see “Disclaimer” for important information.

The Good Job Score Assessment Tool (“GJS Assessment Tool”) represents Two Sigma Impact’s current approach to evaluating and monitoring companies for job quality, is provided for illustrative purposes and is intended to supplement, and not replace, the quantitative and qualitative evaluation of a company’s employment characteristics and other corporate operational metrics. The GJS Assessment Tool is based upon certain assumptions. Other events or criteria that were not taken into account could affect the output of the GJS Assessment Tool and in particular, the “Good Jobs Score” generated for a particular company. Any underlying assumptions used in preparing the GJS Assessment Tool should not be construed to be indicative of any actual events that will occur, which are difficult to predict and will depend upon factors that are not reflected in the GJS Assessment Tool. There can be no assurance that the assumptions made or the specific criteria or weightings selected by Two Sigma Impact for construction of the GJS Assessment Tool and its output will prove correct and actual events and circumstances could vary significantly. There can further be no guarantee that other market participants would not have selected different criteria, inputs or weightings for inputs in the GJS Assessment Tool, which could result in different results (in certain cases materially) than those generated by the GJS Assessment Tool. Additionally, note that the identities of the companies included in our benchmark data are, and were in connection with deploying the corresponding survey, anonymized from Two Sigma Impact.

Evaluation of whether or not a company exhibits employment quality characteristics consistent with those described herein is subjective and there can be no assurance that any company (including those that generate a high “Good Jobs Score”) will meet any corporate effectiveness or financial performance goals. Actual job quality and other corporate characteristics will vary, in certain instances materially, from those reflected in a company’s “Good Jobs Score”. There can be no assurance that use of the GJS Assessment Tool will lead to the achievement of any financial returns, or corporate or investment objectives, including impact metrics such as the creation of Good Jobs. The GJS Assessment Tool is still in its preliminary stages and consequently participants should not assume that use of the tool is a guarantee, projection or prediction of any future results. Consistent with its scientific method-based approach to data analysis, Two Sigma Impact intends to modify and refine the GJS Assessment Tool, including the specific parameters described in the materials included or linked to herein, through the GJS Assessment Tool’s continued development and application. Consequently, the approach to measuring a “Good Jobs Score” is likely to be updated from time to time and all output of the GJS Assessment Tool should be viewed as illustrative.

The information herein is not intended to provide, and should not be relied upon for, accounting, legal or tax advice or investment recommendations. The GJS Assessment Tool is not intended to be relied upon as the basis for any investment decision, and is not, and should not be assumed to be, complete. No representation or warranty, express or implied, is or will be given by Two Sigma Impact or any of its affiliates, directors, officers, employees or advisers or any other person as to the accuracy or completeness of the Site Content or any other written, oral or other communications transmitted or otherwise made available to any party in the course of using the GJS Assessment Tool, and no responsibility or liability whatsoever is accepted for the accuracy or sufficiency thereof or for any errors, omissions or misstatements, negligent or otherwise, relating thereto. Accordingly, none of Two Sigma Impact or any of its affiliates, directors, officers, employees or advisers or any other person shall be liable for any direct, indirect or consequential loss or damages suffered by any person as a result of relying on any statement in or omission from these materials or use of the GJS Assessment Tool and any such liability is expressly disclaimed. All rights to the trademarks, copyrights, logos and other intellectual property herein belong to the respective owners, and nothing contained in the Site Content either grants or will be construed to grant to you or any third party, by implication, estoppel or otherwise, any title or interest in, or any license or right to use or reproduce any Site Content or to use or reproduce the logo(s) of Two Sigma or any of its affiliates. Neither we nor any of our affiliates endorse, verify, evaluate or guarantee the use of the GJS Assessment Tool (or any results, analysis or scores it provides) or any information provided by users, and nothing herein shall be considered as an endorsement, verification or guarantee of any Site Content (including the use of the GJS Assessment Tool or any results, analysis or scores it provides).

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