Two Sigma Impact Successfully Raises Over $675 Million, Launches Good Job Score Assessment Tool Designed to Measure Job Quality

Quantitative assessment tool is designed to inform company leaders on job quality in an effort to help improve employee engagement and drive financial outcomes

New York – April 13, 2023 – Two Sigma Impact, a mission-driven private equity business, today announced the close of its inaugural Impact Fund (“the Fund”). Two Sigma Impact received a total of $677 million in capital commitments to the Fund and its managed co-investments. Two Sigma Impact aims to bring scientific rigor to impact investing and to use data science and technology resources to drive superior financial returns by unlocking human potential. The successful fundraise received support from a range of institutional investors, including pension funds, endowments, foundations, and family offices, along with capital from the Two Sigma Impact team and Two Sigma leadership.

Two Sigma Impact invests in human capital-centric businesses where employees are critical to the delivery of a service or product. The Fund has made six investments in companies spanning healthcare, consumer, education & training, and business services, partnering with management teams that are aligned with its focus on job quality and workforce issues. As of April 1, 2023, the Fund has invested approximately $370 million.

Building on its investment portfolio, Two Sigma Impact has concurrently launched the Good Job Score Assessment Tool (“the GJS Assessment Tool”), an instrument designed to assess job quality in a quantitative manner. The GJS Assessment Tool evaluates job quality and worker satisfaction through the administration of a 12-item questionnaire across what Two Sigma Impact has defined as the four key dimensions of a Good Job: Leadership, Purpose, Growth and Fairness. Two Sigma Impact is currently working with its companies to administer the GJS Assessment Tool across its portfolio and will seek to use it while evaluating prospective new investments.

“We are extremely grateful for the support from our investors in our inaugural Impact Fund. This successful fundraise underscores their conviction in Two Sigma’s differentiated approach to impact investing through our focus on job quality and drawing on our firm’s deep expertise in data science and technology,” said Warren Valdmanis, a Partner at Two Sigma Impact. “Through our research and our engagement with like-minded organizations, we realized there was no true definition of a good job and that existing employee satisfaction surveys were too focused on what companies want – greater productivity – rather than what workers want – good jobs. We believe the Good Job Score has the potential to be the core voice-of-worker metric for measuring and benchmarking job quality.”

The GJS Assessment Tool provides a standardized, statistically reliable, and scalable score that measures job quality and provides insight into how employees rate their jobs across Two Sigma Impact’s four core dimensions of a good job. A company’s Good Job Score is calculated on a scale of 1 (low) to 5 (high), including an overall score and sub-scores across the four dimensions. To create initial benchmark data, the tool was administered to more than 5,800 workers at over 60 companies across industries. Preliminary analysis indicates that a company’s Good Job Score is positively associated with other employee engagement metrics and has a moderate positive correlation with current financial fundamentals such as free cash flow-to-sales ratio, current ratio, and profit margins.

“Over the last three years, we have been investing against our thesis that job quality and employee engagement is highly connected and collinear with business performance,” said Ann Ruble, Operating Partner at Two Sigma Impact. “Our GJS Assessment Tool amplifies the voice of the worker, giving companies insight into where employees believe their company can improve job quality, create better jobs, increase employee satisfaction, and ultimately unlock greater value for investors. We hope by sharing the GJS Assessment Tool broadly, we will raise awareness of job quality as a significant driver of value creation at companies.”

Two Sigma Impact built the GJS Assessment Tool alongside Two Sigma’s Sustainability Science team, which provides data science expertise for ESG and social impact efforts. It was developed through rigorous research, data analysis, and methodologies, aiming to ensure it is unbiased across employee demographics and characteristics, valid across multiple sectors, and that deploying it and tracking progress over time can be as easy as possible. It is publicly available at no cost to other companies seeking to measure job quality over time within their own organizations.

For more information on the Good Job Score Assessment Tool, the methodology, and findings and to access the assessment tool, please visit or read our paper here.

About Two Sigma Impact

Two Sigma Impact aims to bring scientific rigor to impact investing with a focus on workforce issues and job quality. It uses data science and technology resources with the objective to drive superior financial returns by unlocking human potential. The Two Sigma Impact team believes innovative and thoughtful investments in humans will lead to an enhanced employee experience, productivity, and long-term financial returns. It developed and released the Good Job Score Assessment Tool, a core voice-of-worker-derived metric for evaluating job quality at companies over time. As part of Two Sigma, Two Sigma Impact has access to expertise in data science, technology, and a range of corporate specialties, and seeks to support its portfolio companies with those resources.

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This article is not an endorsement by Two Sigma of the papers discussed, their viewpoints or the companies discussed. The views expressed above reflect those of the authors and are not necessarily the views of Two Sigma Investments, LP or any of its affiliates (collectively, “Two Sigma”). The information presented above is only for informational and educational purposes and is not an offer to sell or the solicitation of an offer to buy any securities or other instruments. Additionally, the above information is not intended to provide, and should not be relied upon for investment, accounting, legal or tax advice. Two Sigma makes no representations, express or implied, regarding the accuracy or completeness of this information, and the reader accepts all risks in relying on the above information for any purpose whatsoever. Click here for other important disclaimers and disclosures.