Tech companies lose their glamour

I have been reading with interest an article by Enrique Dans about ‘The Rise and Fall of Technology Companies’, and his analysis of the latest company rankings from Glassdoor, the site that allows employees of companies in the United States to anonymously provide information about their companies. It is the go-to place for job candidates, because they can discover a lot of good info here. From a company’s perspective, what Glassdoor has to say, can potentially attract or put off new talent.

Glassdoor’s 2020 league table is out, and while some people may complain about the way it collects data, one thing is clear this year, technology companies are losing their glamour. You might be surprised to find that both Apple and Google have dropped their positions: indeed, Google isn’t even in the Top 10 companies to work for. Facebook has dropped 16 places and Amazon isn’t even in the Top 100.

The popular perception is that these companies offer such amazing perks in-house that every young person would want to work there. Having said that, Amazon is fast becoming seen as something of a rogue employer that treats its staff, especially those who make sure we all get our orders, as slave labour.

The magic has gone

Dans says that the Glassdoor league table reflects what the media has been saying for some time. That the big tech companies are losing their mythical status. Indeed, when I use the word ‘glamour’ in this context, it is quite appropriate, as the word originally comes from the Scots in the 17th century and meant “a magic spell.” So, you can see why I say they are losing it, and with the consumer as well as the employee.

What happened?

In 2008 after the collapse of the banking sector, new graduates flocked to the tech guys instead of heading to Wall St. Dans, who teaches, states: “everybody wanted to work for the technology companies: I remember all too well the interest my students showed when I invited a senior figure from one of them to a class. Now, my students are often highly critical of the tech companies. Interestingly, it’s the younger students who are most concerned.”

And the concern is about regulating the big tech companies. Facebook has made this a concern, as we have seen over the last few years. But, who or what is replacing the tech companies as the place most people want to work?

According to the Glassdoor data, it’s a very mixed bag, ranging from software companies like Hubspot, to “consultancies, airlines or hamburger chains.” There is no real trend that is discernible as yet, and we may have to wait a couple of years for one to emerge. But right now the tech companies have lost their glamour — perhaps they should look for a fairy to cast a new spell.

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