Employee Turnover at Ericsson
Contributions to staff retention at Ericsson
Our purpose To create connections that make the unimaginable possible. Our vision A world where limitless connectivity improves lives, redefines business and pioneers a sustainable future. Our values Perseverance, professionalism, respect and integrity. The future is a place for purpose & vis...
What is "Avoidable" turnover?
Employee turnover is normal. Employees come and go for many reasons, including personal reasons and reasons that have nothing to do with a specific company. In addition, turnover is known to be high in some industries and for some job types. So how much can a company actually do to improve retention? This differs from company to company but we estimate this number. For Ericsson, we estimate average tenue could be increased by 132 days with effective retention programs. We base this number on a comparison of Ericsson to other similar companies.
What is driving turnover at Ericsson?
Employee turnover at Ericsson is primarily driven by company size and employee seniority. Ericsson is larger than the average company in our database. Businesses with a smaller workforce tend to have more loyal employees. Large companies, on the other hand, typically have a high employee turnover rate because there are more opportunities for employees to leave and find a new job. The employees at Ericsson are, on average, relatively new to the company. Less experienced employees tend to leave an organization more frequently than their more experienced counterparts. Theoretically, this is attributable to two factors: less experienced employees may be more likely to feel dissatisfied with their job or the company's culture. Additionally, as employees become more experienced, they may be more likely to feellike they are able to contribute significantly to the team or organization. If they feel they cannot bring value to their organization, they are likely to look for new opportunities.
The numbers reported here are based on statistical analysis of publicly available employment data of current and past employees of the company. We determine mean tenure based on how long past employees have stayed at the company and how long current employees have been employed. We determine the annual turnover percentage as (1/tenure * 100). We analyse a sample of the employees at a company. We make an effort to sample in a representative way but some bias is unavoidable. Some types of employees may be overrepresented in our sample based on their job, their online activity, and their geographic location. We expect our number to have a confidence interval of approximately 1 year. In other words, if the mean tenure reported is 4 years, the true value lies between 3 and 5 with 98% confidence. Similarly if the average turnover reported is 20% we expect the true value to be between 15% and 25%.
We make an effort to report accurate information and to be transparent regarding our methodology. However, we make no warranty of any kind as to the accuracy of these reports. Use at your own risk. If you feel that any of the information reported here is inaccurate for any reason, please let us know.