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.

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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