(TL;DR) Here’s the ranking going from top to bottom (so higher / longer the better):
How did you measure this?
By running advanced Linkedin searches and counting up the hits. Specifically, for each company, at their headquarters location only, I searched for profiles that were or are software engineers, and had at least 1+ years of experience. Then I filtered these results in two ways:
1) Counting how many of those profiles used to work at the company in question (and not currently). Call this result Past Not Current Count.
2) Separately (not applying the above filter), filtering to those who are currently working at the company for at least 1+ years. Call this Current Count.
I also computed the number of days since incorporation for each respective company to be able to compute Churn Per Day – which is simply dividing Past Not Current Count by the number of days since incorporation.
Then I took this rate, and computed how long in years it would take for each company to churn through all of their Current Count or current heads who were or are software engineers and who’ve been with the company for at least 1 year (those who possess the most tribal wisdom and arguably deserve more retention benefits). Call this the Wipeout Period (in years) figure. This is what’s plotted in the chart above and is represented by the size of the bars – so longer the better for a company.
What does the color hue indicate?
The Churn Per Day (described in the previous answer). The darker the color the higher the churn rate.
Who’s safe and who’s at risk?
I would think under a 10 year wipeout period (esp. if you’re a larger and mature company) would be very scary.
In general (disclaimer – subjective – would like to run this over more comps) greater than 20 years feels safe, but if you’re dark green (and hence experience more churn per day) then in order to keep your wipeout period long you need to be hiring many new engineering heads constantly (but you may not always be hot in tech to be able to maintain such a hiring pace!).
What are the caveats with this analysis?
There are several, but to mention a few:
Past Not Current Count biases against older companies – for ex. Microsoft has had more churn than # of present heads because they’ve been in business for a long time.
I needed more precise filtering options than what was available from Linkedin to be able to properly remove software internships (although could argue that’s still valid churn – means that the company wasn’t able to pipeline them into another internship or full-time position) as well as ensure that the Past Not Current Count factored only software engineers at the time that they were working at that company. So, given the lack of these filters, a better description for the above chart would be Ranking Retention of Folks with Software Experience.
Also, this analysis assumes the Churn Per Day figure is the same for all folks currently 1+ years at their respective company, even though it’s likely that the churn rate is different depending the # of years you’re at the company (I’m essentially assuming it’s a wash – that the distributions of the historical Past Not Current vs Current are similar).
One thought on “Top Tech Companies Ranked By Engineering Retention”
Very sophisticated data massaging this!