Just how important is company culture and employee happiness in the current, ultra-competitive tech economy? In a word, very.
That is the main takeaway from the second annual Battery Ventures/Glassdoor Highest Rated Cloud Computing Companies to Work For project, which highlights private and public, B2B-focused cloud companies with stellar records of employee satisfaction, as measured by employee feedback shared on Glassdoor. Such ratings are increasingly important as cloud and other technology firms, particularly smaller ones, fight harder than ever to attract and retain new talent.
This year, it was even harder to crack the rankings compared to the last time Battery and Glassdoor partnered to produce the lists, in late 2016. Private cloud startups this year needed a Glassdoor rating of 4.4 to make the Top 50 list, compared to 4.1 two years ago. The step up for public companies was not as great. But still, making the list of the Top 25 public companies required a score of 4.0, up from 3.9 the last time the list was produced.
Overall, the specific CEO approval ratings for companies on this year’s lists, as with the last set of rankings, were also markedly higher than those for companies across all of Glassdoor generally. Similarly, employees at these highly ranked companies felt more positive about the future of their companies’ businesses than employees on Glassdoor overall.
Although the companies on the public-company list are obviously larger, the smaller startups on the Top 50 Private Cloud Computing Companies to Work For list also represent an elite group. Here are some statistics detailing their employee counts and employee growth—something helping to power the broader economy—and also numbers on their fundraising from investors.
Interestingly, 36 of the companies on this year’s startup list were new, compared to 2016, demonstrating the continuing innovation in the cloud economy. And of the 50 companies listed on the 2016 private-company list, an impressive six have since been acquired, and 10 have staged initial-public stock offerings.
The highest rated public and private companies cut across many market sectors, though large percentages are clustered in areas like sales and marketing technology, as well as HR and finance. Some of the highest-rated companies serve more-niche markets, including ServiceTitan*, a Glendale, CA firm that provides software to home-services contractors like plumbers.
Finally, though the majority of companies on the lists are based in California—half the private firms and 60% of the public firms—there was a notable distribution of the companies across other states, highlighting the rise of other technology centers in the U.S. Of note, Utah had a strong showing on both lists. Only three of the 10 highest-rated private companies are based in California; 14% of the 50 private companies have headquarters in New York, with others in places ranging from Washington State to Georgia, Michigan and North Carolina.
*Denotes a current or former Battery investment. For a full list of all Battery investments and exits, please click here.
**Data is based on less than 30 ratings.
***Went public after 4/15/18 data analysis cutoff.
****Views contained herein are for informational purposes only and should neither be considered investment advice nor construed or used as an offer and/or recommendation to buy or sell a security.
Methodology: The private- and public-company reports identify cloud computing companies that are highest rated on Glassdoor, based on company ratings shared by employees. To be considered, a cloud company must have received at least 30 company reviews on Glassdoor as of 3/18/18. The private-company report tracks independent, non-public cloud companies that, according to Battery research and data from research service Crunchbase, are based in the U.S.; have a B2B business model; are categorized as Saas, cloud-computing and/or enterprise software, according to Crunchbase; have more than 200 employees (as of 4/13/2018, according to company data provided to LinkedIn and Battery research); and have raised funding over the past three years (on or after 7/1/14). The public-company report tracks public cloud companies globally with a B2B business model that have at least $500 million in total enterprise value as of April 15, 2018, according to CapIQ.
A company’s CEO approval rating and positive business outlook rating—indicating the percentage of employees who believe their employer’s business will get better in the next six months–was not taken into account to determine rank or overall company rating on either list, though we display these added data points for additional insight into each of these companies.
This material is provided for informational purposes, and it is not, and may not be relied on in any manner as, legal, tax or investment advice or as an offer to sell or a solicitation of an offer to buy an interest in any fund or investment vehicle managed by Battery Ventures or any other Battery entity.
The information and data are as of the publication date unless otherwise noted.
Content obtained from third-party sources, although believed to be reliable, has not been independently verified as to its accuracy or completeness and cannot be guaranteed. Battery Ventures has no obligation to update, modify or amend the content of this post nor notify its readers in the event that any information, opinion, projection, forecast or estimate included, changes or subsequently becomes inaccurate.
The information above may contain projections or other forward-looking statements regarding future events or expectations. Predictions, opinions and other information discussed in this video are subject to change continually and without notice of any kind and may no longer be true after the date indicated. Battery Ventures assumes no duty to and does not undertake to update forward-looking statements.
*Denotes a Battery portfolio company. For a full list of all Battery investments, please click here.