Why Is Turnover At FAANG So High?

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I’m sure you’ve all heard about how FAANG companies rank as some of the best places to work in the world, but did you know that FAANG companies also have some of the worst turnover in the world. At first glance, this might seem a bit confusing, but when you take a closer look at the situation of FAANG employees, this makes a lot more sense. First of all, by the time most FAANG software engineers make it to their mid-30s, they’re already extremely well off. Thanks to all of the stock compensation they earn and the enormous growth of FAANG stock, these guys are usually worth over $5 million if not $10 million by the time they’re in their mid-30s. So, they’re not exactly motivated to stay at a FAANG company just for the money. Even if they were motivated by money though, studies have shown over and over again that switching companies frequently usually results in higher pay over the long term. Not to mention, given the connections and knowledge these guys have, they can often start their own companies that go on to be worth hundreds of millions if not billions. So, it makes little sense for them to continue working at FAANG. Finally, while FAANG’s company policies themselves are relatively relaxed, many employees find it stressful anyway due to the competitive personalities of everyone working there. And more times than not, this leads to burnout and the need to switch companies and get a fresh start. This video explains why FAANG companies are unable to retain their employees despite their generous policies and insanely high pay.

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Timestamps:
0:00 - Turnover At FAANG
2:08 - Financial Freedom
5:28 - Money Driven
8:22 - Burnout
11:23 - The Truth About FAANG

Resources:

Disclaimer:
This video is not a solicitation or personal financial advice. All investing involves risk. Please do your own research.

[renelataupeenanglai]

As a FAANG employee, I can confirm this is accurate. I'm at the point where I'm thinking maybe i can better allocate the 50-60 hours I work a week (let alone the time I spend thinking about my job outside of production) into my own initiatives to achieve better results. The bar is high at these companies and it can be tough to broaden your horizons whilst maintaining a high standard in your core job.

[rodrigob]

Knowing myself a bunch of current and ex- faang people, this summary sounds quite accurate indeed.
I would add one more somewhat common case: some people join Faang to prove to themselves that they can, and quickly discover they do not like the "big corp" aspect of it and move rather fast (less than 2 years in) to smaller scale companies/startups.

[danielvasquez]

I think people are either burnt out or they're leveraging their salaries at these companies and others!! Also some may be tired at all the scandals these companies have gone through!!

[SimonTimbers]

Tbh if youre smart enough to get in faang youre smart enough to know you can leverage that position for a higher salary elsewhere and should be switching jobs every 1-2 years

[RushingRussianify]

Silver lining is really in the B tier companies, 70-90% of FAANG compensation at 20-50% of the stress

[booooooooooooooooooooooo]

I work for FAANG. Pay is always higher for new hires. Staying for longer and your salary only grows by 3-5 percent without a promotion. And even with a promotion, you’re looking at 12-15%. If I jump to another FANNG after getting all of my sign on bonus stock after 4 year, I’ll get a new batch of sign on bonus. Silicon valley is hostile to people with long tenure, it’s always better to hop around.

[starsoffyre]

This video is absolutely accurate.

I started a FAANG job 4 months ago. It's the most hectic job I've had so far. Given that I'm still new, I definitely value the learning rate and salary bump I got. I'm planning to stay for several years because of the stock vesting schedule, but I can't deny it's difficult to keep it up over the long run. Everyone is insanely competitive by nature. Everyone seems like a high flyer, but when I talk to my colleagues one-on-one, I find out that they're all equally stressed out and have their fair share of imposter syndrome. I think many people in FAANG are there to get the brand name in their CV, and using that to negotiate an even higher pay at a more senior position in another company.

[KaiSosceles]

I worked on campus tech support for one of these companies and the request workload was 10x higher than any other support job Ive had, and I didnt make more money as far as wage. I did save money because I had 3 free meals a day, but that was eaten by a 3 hours of commute time each day.

[BriefNerdOriginal]

The moment your company selects employees based on greed instead of motivation for the job, you end up with gears instead of people. And gears wear off and get replaced.

[milandjuric]

I just got a job at a FAANG 2 months ago, and for now, it is amazing, you are scaring me a bit hahah

[TheVirtualArena]

As a non-faang employee I can neither confirm nor deny any of these.

[matthewmitchell]

It’s the same for Goldman Sacs, and top high finance company. The stress level is super high and the demand to perform is super high.

[danielvasquez]

Great to hear you again brother!! Hope the week has treated you well!!

[danielvasquez]

I think it is market wide brother!! The younger generation won't be working in the same company for 20/30 years anymore. They are looking to the next big thing or they are looking to retire sooner rather than later. And get them stocks people!! They're a life saver!!

[Schadowofmorning]

Yeah this general high turnover rate is gonna bite our asses. I'm a software engineer and we do a lot of integration stuff, and from time to time I have to work with an "expert" of another company which product will be integrated, and the person may be talented but has next to no idea of the inner workings of the product.
you cannot grasp the entirety of a complex system and the inner workings of it in less than a year or two.

[filip]

As an IT student hoping to work at minimum one of these companies in the future, this video is inspiring and off-putting. All good things are hard to come by however, so working there must still be worth it in many ways.

[gilgamesh]

I think the reason why these companies have so much money to give to their employees, is because they don’t give dividends to their shareholders. The investors just cannibalise others for profit without needing to rely on dividends.

It’s interesting to know how they employees impose a form of crunch on themselves. It’s not something that’s understood all that well by people who think all employees that work long hours are treated poorly.

[Eric_Four_Two]

Workload must be insane and people figure out that at the end of the day, you’re earning every cent. No matter how much they make, it eventually becomes not worth it.

[wanjohi]

Most of them get more paying gigs as startup CTOs or cofounders.🤷🏾‍♂️

[TheBooban]

People who don’t switch jobs every 1-2 yrs is because they can’t. So just because it pays off for these guys, don’t think you can do it too.