Embrace Short Employee Tenures

Reid Hoffman's perspective on modern employee retention acknowledges that the traditional model of 20-year careers is obsolete, particularly in tech where average tenure is around 2 years. Instead of fighting this trend, companies should embrace it and build mutually beneficial relationships with employees.

Key Points:

• The Old Model is Dead

  • People no longer stay at companies from start to retirement
  • In tech, average tenure is about 2 years or less
  • At companies like Facebook, it's even shorter

• The Alliance Framework

  • Create mutual understanding between employer and employee
  • Be explicit that the relationship lasts as long as it's mutually beneficial
  • Expect departures after 2-4 years
  • Support employees when they decide to leave

• Network Effects of Former Employees

  • Ex-employees aren't "dead to the company"
  • They become champions and advocates
  • Future opportunities emerge:
    • Investment opportunities
    • Return employment
    • Referrals
    • Business partnerships

• The Entrepreneurial Employee Challenge

  • Best performers often have entrepreneurial mindsets
  • These people are hardest to retain long-term
  • They naturally want to start their own ventures
  • Solution: Accept higher turnover for better talent

• Alternative Perspective (Sam Parr)

  • Still believes it's possible to build companies where people stay 10+ years
  • Even in current environment of 2-4 year average tenures
  • Requires intentional company building from the start