Written for and originally posted at Mighty Spring.
My father spent a decade working at Mariani, beginning in their finance department and working his way up through the organization to become the Chief Financial Officer. They make dried fruit and I grew up knowing more about food processing and Just In Time manufacturing practices than any of the other kids in my class. When talking to him about my career path, he wonders why I don’t ever stay with the same company for more than a few years.
While previous generations expected a long tenure in the same place with regularly-spaced rungs bringing them higher up the corporate ladder, that is often no longer the case. Shorter tenures and horizontal moves have become the new normal.
This post will discuss the relative costs and benefits of both approaches - along with how to mitigate the difficulties associated with each.
First - what are the benefits and disadvantages of a long tenure and vertical career movement?
Working at the same company for at least 4 years gives you the opportunity to experience the long-term effects of business and development decisions made early on. This puts you in a better position for mentorship and acquiring a deep domain knowledge.
With longer tenure also comes the expectation of promotion. While this can be a good thing, promotion can take you out of your skill strength. The Peter Principle, a management theory which suggests that organizations risk filling management roles with people who are incompetent if they promote those who are performing well, was initially introduced as a joke but has been proven to be true. Studies have shown that promoting individuals within a company completely at random results in greater organizational efficiency. Pursue a shift from individual contributor to management because you want to manage - not just because that’s what you feel you should probably be doing next.
So, what about shorter stints and lateral career moves?
Lateral movements have their own unique benefits: building breadth of experience, being able to identify the commonalities between seemingly unconnected spaces, and a better understanding of a broader range of possible markets and users. You end up working with different teams of people, experiencing different management styles, and different approaches to a wider variety of problems.
You may be concerned that lateral movement can look like job-hopping, but “job-hopping” isn’t uncommon in the San Francisco Bay Area. A study by MIT found “higher rates of job-hopping for college-educated men in Silicon Valley’s computer industry than in computer clusters located out of the state.” How are shorter tenures interpreted by the people reviewing resumes?
“Context is everything. Silicon Valley isn’t the only place with unstable employers; somebody who likes working for startups is going to bounce around a lot between stable gigs. Look at the employers: staying no more than six months at, say, Apple, Bank of America, and Carnegie-Melon University is far more ominous than brief stays at Frank’s ConsultantTeria, BadlyExecutedIdea.com, and OurInvestorsBonedUs.org.” BlairHippo
The startup lifecycle can be brief - and even if a startup does well different kinds of people are needed in the early stages of quick builds and grand ideas than in the later stages of small tweaks and optimizations.
“Most of us have grown up assuming that career success is vertical. […] The problem with this powerful paradigm is that today’s work is no longer divided up into small tasks that require higher and higher layers of management to put together. Instead most work is accomplished through horizontal processes that cut across different functions, geographies, and specialties. Therefore real success comes less from controlling people that report to you, and more from the ability to align stakeholders who surround you.”
“Your Career Needs to be Horizontal,” Harvard Business Review
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