SaaStr · 2021-01-23 · 1958d

Why SaaS Companies Should Avoid "Head of" Titles and Hire at Full VP Level Early

Jason Lemkin argues that SaaS founders should hire talented candidates directly into VP roles rather than using intermediary "Head of" titles, even when uncertain about scaling. He illustrates this with a story of a founder who missed hiring an exceptional VP of Sales candidate by offering only a "Head of Sales" position, which the candidate declined. The article contends that indefinite "Head of" titles create confusion internally and externally while demotivating high performers in B2B SaaS environments.

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Metrics in this report

ARR scaling range for core team stability

$2m-$30mARR

range observed

EchoSign/Adobe Sign maintained same core management team across this growth range

Company ARR when titling becomes critical

$1m-$2mARR

threshold

SaaS companies at which point clear executive titles matter for external credibility

Decision window for "Head of" to VP promotion

6months

approximate

Time available to assess and promote interim "Head of" titles to VP

Employee count threshold for title importance

10-15employees

range

Below this, titles have minimal impact; above this, clarity becomes important