The leading social network has nearly 45,000 full-time workers spread globally. More than 60% of Facebook employees are located outside of the US. There are 49 Facebook offices across 82 locations in North America, Latin America, Asia-Pacific, Africa, and the Middle East.
Employee retention at Facebook is high with employees staying 2.5 years on average. One factor that contributes to lower employee attrition rates is the compensation and benefits package offered by the company.
For all the positive praise for Facebook’s progressive labor practices, there is still criticism particularly in the areas of gender and ethnic equality in its workforce.
This article explores the number of full-time Facebook employees, compensation, rate of attrition, and employee demographics based on gender and race by digging deep into the categories below:
Facebook claims 44,942 full-time employees in its labor force. The social network titan boasts of 3,142 jobs spread out in 23 teams in its 82 offices across the globe. The biggest growth jump in employees was in 2006 where worker numbers jumped 900% to 450 employees from 150 in the previous year. The employment growth rate grew at an average of 44.34%. The rate has since slowed down 26.29% for 2019.
Facebook’s headquarters in 1 Hacker Way is in the middle of a housing and mixed-use real estate project. The 59-acre project aims to provide housing for Facebook’s over 15,000-strong local Menlo Park employees. The social media giant plans to create 1,500 permanent housing, 225 of which will be affordable.
Sky-rocketing housing costs are a common complaint among employees in the Silicon Valley area where the average monthly rent for a 2-bedroom apartment is between $2.500 to $4.500. The figure will easily cut into Facebook’s generous annual compensation of $120,000.
Facebook claimed to have generated 450,000 jobs in Europe and in the US based on studies released prior to the launch of the IPO. There were two versions of the study. The University of Maryland’s Business School did a study that claimed the social network generated over 235,644 jobs in the US, jobs in app and software companies. A similar study from Deloitte claims 232,000 jobs were generated from likes and engagement on Facebook business pages.
The news was met with skepticism from some sectors as Facebook only had 3,200 employees at the studies’ release. Another point of contention was Facebook’s role in both studies; the data was supplied by Facebook and the Deloitte research was commissioned by Facebook itself.
Facebook is ranked the fifth largest Silicon Valley employer and pays above-average starting salaries. Annual base compensation starts at $120,000 – $130,000 while total compensation packages are at a median $150,000 – $155,000.
It has consistently placed in the top ten rankings of Glassdoor’s annual Best Places to Work poll; placing 1st on several occasions, the last was in 2018. Facebook has since dropped to 23rd place in 2020 rankings.
Facebook’s generous starting packages for interns range from $6,600 – $9,500 per month plus a bunch of other perks. At these starting rates, one wonders, “how much does Mark Zuckerberg make?” The Facebook CEO makes a dollar a year and joins Elon Musk of Tesla, Evan Spiegel of Snapchat, and Larry Page of Google in the $1 club.
The $1 annual salary is mostly symbolic as these CEOs tend to earn compensation through other forms. In Mark Zuckerberg’s case, he earned a dollar in annual salaries plus $22.5 million in other compensation for 2018. He also owns 12.18 million Class A shares and 365.72 million Class B shares. Class A shares are common stocks ordinary people could own while Class B stocks, of which Zuckerberg owns 88.1% of, are shares with board voting rights.
With a net worth of $71.1 billion, Zuckerberg can afford to live off his 1-dollar a year salary.
Source: Facebook; Morningstar
Facebook’s base compensation starts at $120,000 annually; interns start at $6,600 a month according to Glassdoor. Engineer positions are estimated to start in the $8,000 – $10,000 range and data scientists are at the $12,000 – $15,000 monthly. Additional benefits—health insurance, parental leave, relocation packages, among other things—increase total compensation value to about $155,000 a year.
Since ranking first place as the best place to work in 2018, Facebook has fallen 22 spots in 2020 rankings. A lucrative compensation and benefits package does not always equal employee loyalty. The average Facebook employee tenure is 2.5 years with an attrition rate of 5%.
Terrible managers and a heavy workload are top reasons why employees leave a company; a lack of clear management approach and leadership are applicable in Facebook’s case. The series of data leaks and other scandals that have plagued the company in 2018 and the responses to the aforementioned have caused Zuckerberg’s CEO rankings to drop below the top 50 and employees to be demoralized.
The high-energy startup vibe of tech companies like Facebook makes it attractive to interns trying to establish a career in Silicon Valley and tech veterans. Facebook is a good fit for both but criticisms ranging from ageism to a lack of privacy and personal space in the open workspaces, to the inability to separate personal life from work life, have caused low morale among employees. This dissatisfaction has manifested in unfavorable reviews—anonymously posted and otherwise— on online forums Reddit, Quora, and the like.
The company had 7 employees when Facebook launched in 2004. By the time Facebook launched its IPO, the workforce has grown to over 3,200.
Facebook has a low turnover rate of 5% and an average employee tenure between two to two and a half years. The year 2018 saw a rise in employee attrition rates when the company was dealing with backlash from user data leaks, management’s delayed response in dealing with the fallout, and several congressional hearings on fact-checking political ads and use of user data without owner consent.
A Business Journal study ranked the top Silicon Valley employers; Facebook placed fifth on the list and now boasts a local employee headcount of over 15,000, making the company enticing to job hunters. So enticing that Facebook is said to receive over 250,000 applications a year, not counting inside referrals.
Source: Business Journal
Similar to other multinational corporations, Facebook has a layered hiring process with three interviews to hurdle. The process is straightforward. Prospective employees send their resume—either through a recruiter or through Facebook itself. Should the resume meet the hiring requirement, a Facebook recruiter will conduct a preliminary phone interview. A second phone interview follows with a team manager for the unit that’s hiring to check for role suitability. This progresses to an in-person interview and a visit to Facebook HQ (or where ever the Facebook office location is). A review of the application will be done and if the candidate is a good fit, an offer will be proposed.
As previously mentioned, Facebook has three possible interviews in its hiring process. The actual length will vary depending on the position and Facebook location applied at. With the volume of job applications Facebook goes through, the process usually takes three to four weeks with a few days to a week in between interviews.
The Facebook hiring team takes a week or two to go over hiring notes and input from all the managers a prospective employee interviewed with and the feedback from the candidate. Depending on the location or the hiring manager, the candidate will receive a call or an email to notify whether they got in or not, and advise when they could try again should they still be interested.
Facebook’s recruitment and hiring policy recommend a one-year wait in-between applications. The reasoning for this is for the candidate to learn new skills and improve from experience. There is also a three-job application limit to ensure prospective employees who apply have core skills and are a good fit for the position applied for.
A good starting salary in Silicon Valley is usually matched with perks routinely described as impressive. VMware lets employees take two-day bereavement leave for the death of a pet and Airbnb gives an annual $2,000 allowance which employees can use to check in to any listing around the world.
As for Facebook, some of the perks available to its employees include on-site laundry, all-day free meals and snacks, gym memberships or equivalent health programs, and valet parking (at Menlo Park) plus charging outlets for electric cars among other things.
The compensation and benefits package is tempting but there is also the criticism that it only profits a few at the top leaving others to fend for themselves.
The social network’s employee benefits are numerous. It starts with a holistic health and wellness package which includes coverage for autism, transgender, and mental health issues. There is also a flexible spending account for dependent care and healthcare expenses.
Additional monetary benefits that employees receive include equity incentive plans, restricted stock units, and performance bonuses.
What sets Facebook apart and what it excels in are family-oriented benefits like its caregiving program—extended leaves to take care of ill family members has been added as well as 20 days of bereavement leave.
|Insurance, Health & Wellness||Financial & Retirement||Family & Parenting||Vacation & Time Off||Perks & Discounts||Professional Support|
|Health Insurance||401K Plan||Maternity & Paternity leave||Vacation & PTO||Employee Discount Card||Diversity Program|
|Dental Insurance||Retirement Plan||Dependent care||Sick Days||Free lunch or Snacks||Job Training|
|Flexible Spending Account (FSA)||Performance Bonus||Childcare||Paid Holidays||Employee Assistance Program||Professional Development|
|Vision Insurance||Restricted Stock Units (RSU)||Baby Bonus||Bereavement Leave||Gym Membership|
|Health Insurance||Family Medical Leave||Commuter Checks & Assistance|
|On-Site Health Care||Mobile Phone Discount|
|Mental Health care||Company Social Events|
Facebook employees get restricted stock units (RSU). RSUs keep their value, unlike stocks that fluctuate in the market; RSUs can be sold after 4 years. Facebook has the option to buy back RSUs from their employees at the same price it was issued regardless of price drops.
Stock options were no longer an option prior to the company’s IPO in 2012. In fact, Facebook started offering RSUs to employees in 2007 to avoid diluting ownership and going over the 500 shareholder limit allowed by SEC to keep company financials private.
Facebook’s company page touts a progressive and inclusionary workplace accepting of diverse backgrounds. Reviews on Glassdoor and Indeed are often positive. There is occasional dissent from former employees describing the atmosphere as cult-like and intense. But nothing too scandalous to merit national headlines.
Facebook turned 16 and with age comes growth and maturity. The company isn’t a startup anymore and has dealt with its share of failures. It has also improved where it is lacking; addressing changes in employee benefits, affordable housing concerns, and equality and diversity in its employees.
There is no exact data of how many of Facebook’s employees became millionaires after the IPO. The claim “Facebook will create 1,000 millionaires” became a catchphrase to describe the IPO fever that swept the tech world in the days leading to Facebook going public.
The bigger names from the company’s roster did become millionaires, billionaires for some. Leading the list of billionaires are the founders who built the website from the ground up—Mark Zuckerberg, Dustin Moskovitz, Eduardo Saverin, and Chris Hughes.
Source: Business Insider
Source: Business Insider
Employees in smaller roles when Facebook launched its IPO experienced windfalls but did not quite reach millionaire status. Antonio Garcia Martinez, a former product manager at Facebook wrote of his time in the company. He recalls the onslaught of luxury cars popping up in the office parking lots and four-digit restaurant bills after Facebook went public.
The average age of a Facebook user is between the ages of 18–24 years old in its early years. The user base has grown with the company with current worldwide user stats placing the average user age between 25–34 years old.
Employee age is closer to current user statistics–fresh off of college or millennial. While the gender divide is still far from equal, Facebook is taking steps to address the unequal gender representation among its employees.
Origin stories for legendary tech companies follow the pattern of a young, nerdy outsider coding their way to millions in their dorm room or their parents’ garage. Silicon Valley is filled with these young tech workers. How young?
A study showed Facebook has one of the youngest employee median age among tech companies. The median age for Facebook employees is 28. The oldest in the range is 39.
The disproportionate skew to male employees in tech has been raised many times in the discussion of gender inequality in the workplace. The imbalance is strongly felt in the tech industry. Attempts have been made to address the imbalance not just in Silicon Valley but across all sectors. Facebook appointed two female directors to its board bringing the number of female board directors to 40%.
Facebook has been tracking their employee gender equality since 2014. The results are dismal—women make up only a third of the total global Facebook workforce.
The numbers are slowly increasing; the proportion is climbing gradually but it may take longer to equalize.
The disparity is most felt in the tech department where women make up less than 25% of the employee count. The business and sales department has reverse-inequality; women outnumber the men three to one.
The Facebook Diversity Report from 2019 focused on increasing employment and representation for women and other underrepresented groups.
White employees make up more than 50% of employee numbers followed closely by Asians at just over 30%. The remaining is composed of Blacks, Hispanics, and mixed races.
Similar to the trend in gender gap, which is gradually decreasing, the same can be observed in employees’ ethnicity as the share of employees with ethnicity other than white grows.
FinancesOnline is available for free for all business professionals interested in an efficient way to find top-notch SaaS solutions. We are able to keep our service free of charge thanks to cooperation with some of the vendors, who are willing to pay us for traffic and sales opportunities provided by our website. Please note, that FinancesOnline lists all vendors, we’re not limited only to the ones that pay us, and all software providers have an equal opportunity to get featured in our rankings and comparisons, win awards, gather user reviews, all in our effort to give you reliable advice that will enable you to make well-informed purchase decisions.