Employee Turnover at Toptal
Contributions to staff retention at Toptal
Toptal is a network of the world's top talent in business, design, and technology that enables companies to scale their teams, on demand. With $200+ million in annual revenue and over 40% year-over-year growth, Toptal is the largest fully distributed workforce in the world.
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 Toptal, we estimate average tenue could be increased by 63 days with effective retention programs. We base this number on a comparison of Toptal to other similar companies.
What is driving turnover at Toptal?
Employee turnover at Toptal is primarily driven by employee seniority and in-demand employee skills. The employees in this company have had more experience and are more experienced than the average employee. Higher-turnover companies often have less- stable workforces because their employees are more likely to leave for a variety of reasons, such as dissatisfaction with their job, a lack of opportunities for growth, or a feeling that their team is not supportive. In order to reduce employee turnover, you need to create a welcoming and motivating environment for your employees, offer competitive salaries and benefits, and create a work-life balance that matched worker needs. The skills this company needs are not scarce within the industry. Employee turnover is lower at companies that employs skills that are in lower demand. This is because such employees are less likely to be poached by competitors and have fewer opportunities to leave for other jobs.
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.