Understanding Facebook's Turnover Rate and Its Impact on the Tech Industry

Facebook, now known as Meta Platforms Inc., has faced scrutiny in terms of its employee turnover rates and workplace culture. As of August 2023, these rates can vary significantly year by year and by department. While the tech industry generally experiences higher turnover rates, ranging from 13 to 20 percent annually, Meta has had a notably higher rate of employee departure. This article delves into the specifics of Facebook's turnover rate, its impact on the company's revenue, and the experiences shared by former employees.

Understanding the Facebook Churn Rate

Facebook maintains a large and active user base of 1.59 billion monthly active users (MAUs) as of June 30, 2018. The churn rate, or the rate at which users leave, is a critical metric that impacts the company's revenue. The churn rate can be calculated by dividing the number of MAUs at the beginning of a month by the number at the end of that same month. This calculation provides insight into how many users were added and how many left during that specific period.

For example, in June 2018, Facebook had 1.59 billion MAUs, while in May 2018, it had 1.54 billion MAUs. This means that 94 million MAUs left during May 2018, representing a loss of over 3 million users every single day!

Employee Turnover: A Personal Perspective

According to Garrick Saito, a former graphic designer at Facebook, the company's turnover rate is extremely high. Saito states, "Facebook has a low turnover rate of 5%, and an average employee tenure between two to two and a half years." However, his personal experience as a graphic designer paints a different picture. In his words, 'Facebook has an INCREDIBLE turnover rate, especially in graphic designers.' Saito shares his story of being hired as one of 30 temporary full-time graphic designers for the annual F8 conference. Initially, the experience was positive, with a stunning campus and dream-like perks. However, within just a few weeks, the workload had shifted, with only a few remaining designers doing the bulk of the work.

Saito explains, 'All 30 of us were fired for “not being the right fit for the team” or some other equally lame reason. A month later, recruiters started reaching out again, offering positions at 10% less than the initial offer. This trend continued every three months, with the new hires being given half the salary as the previous batch.' Saito's experience reflects broader issues within the company, such as misleading hiring practices and low employee retention.

The Impact of High Turnover on the Graphic Design Field

For graphic designers, Facebook's high turnover rates are detrimental. Saito believes that low-paid graphic designers hired by Facebook set a new standard, leading other companies to follow suit. He states, 'All the recruiting, onboarding, payroll, and firing are done through third-party staffing agencies, making these high dismissal rates unreflective on the company's official HR records.' This means that 'on paper, they’re angels,' but in reality, the company's practices are harmful to both employees and the broader industry.

The low salaries and conditional job prospects are a stark contrast to the glamorous image of working at a leading tech company. Saito concludes that taking these jobs can set a precedent for future hires, leading to a decrease in the industry standard for graphic designers and potentially harm the reputation of the industry's talent pool.

Conclusion

Facebook's high turnover rate and misleading hiring practices have significant implications for both the company and the broader tech industry. While the company may present a positive image on paper, the experiences of former employees reveal a different reality. Understanding these issues is essential for evaluating the true state of workplace culture and retention strategies within the tech industry.

Keywords

Facebook turnover rate, employee retention, workplace culture