FAANG is dead. Better options in 2023 for developers (career growth focus)

One of the most important things to consider when joining a company is the potential for career growth within that organization.

Note this article expands on the compensation focus and PTO focus articles of this series.

Company Growth Potential

FAANG companies have traditionally been great options due to their rapid growth. However, they are now some of the biggest companies in the world, and there may not be enough room for significant growth. A good measure of a company’s size is its market capitalization, which is the total value of the company based on its stock price and the number of shares. If you look at the list of the largest companies in the world, you will see that all FAANG companies, except Netflix, are in the top 10. This doesn’t mean that they won’t grow, but it’s unlikely that they will grow as quickly as they did in the previous decade.

We can contrast FAANG companies with smaller ones like Plaid, which have more room to grow. However, there is no guarantee of growth, even if a company is growing quickly at present. Therefore, when choosing a company for growth, it is essential to understand the cause of their growth and have high conviction that it will continue before making any career decisions based on it. It’s important to note that none of these companies, including FAANG, are immune to macroeconomic trends. Most have had to do some form of layoffs in 2022 or early 2023 as the Federal Reserve raises interest rates to fight inflation. These companies, along with FAANG, will have their business revenue and valuation ebb and flow with the macroeconomic environment. Understanding a company’s growth potential is crucial because as a company grows, its employees usually experience career growth at a similar speed.

Personal Growth within a company

FAANG is very well known, and many engineers want to work for those companies, which leads to high competition for jobs. However, once you land a job at one of these giants, the company’s sheer size can make it challenging to have a meaningful impact on the business. For example, Apple is a trillion-dollar company, so you need to be able to generate billions of dollars in revenue to move the needle for them. As a result, even great developers can become just another cog in the machine at FAANG companies.

While FAANG companies do provide an excellent atmosphere for engineers, it can be better to work for a company with a smaller engineering organization or less revenue because it’s easier to make a significant impact. Smaller companies often provide more opportunities to take on leadership roles, work on a variety of projects, and have more autonomy. Working for a smaller company can help you develop your skills and make a name for yourself more easily.

However, one caveat is that having FAANG on your resume can help your job prospects in future companies. These companies are highly respected in the tech industry, and having experience at one of them can open doors for you in the future. So, while it may be more challenging to make a significant impact at FAANG companies, the experience can still be valuable for your career.

Like many things in engineering there are trade offs when considering a company to work for. Understanding the growth potential of the company and yourself within it, can save you years of effort.