SaaStr · 2020-08-15
· 2119d
Career Longevity and Financial Outcomes: Why Annual Job Changes Prevent Wealth Building in SaaS
Jason Lemkin argues that employees who quit their jobs annually fail to build meaningful wealth or develop leadership skills. The article examines how the prevalence of one-year tenures in tech, while benefiting individual engineers through salary growth and job security, undermines long-term equity accumulation, career progression, and the development of real business acumen required for senior leadership roles.
Metrics in this report
Actual Equity Realized if Leaving After Year 1
15%
estimated
of total expected options due to additional grants during employment
Average Manager Job Tenure
18months
typical
tech industry manager-level hires
Equity Vesting Percentage at 1-Year Cliff
25%
standard
of total option grant
Facebook Annual Engineering Hires
1000employees
annual
circa 2020
Google Annual Engineering Hires
3000employees
annual
circa 2020
Minimum Tenure for Leadership Progression
3years
minimum
for double promotion (IC→Manager→Director)
Stock Vesting Cliff
1year
standard
startup equity grants