A closer look at startup employee retention
How soon do startup employees leave their jobs? Carta data shows that in most cases, workers depart within three years, whether voluntarily or involuntarily.
While this pattern has been largely consistent over time across cohorts that started their roles in different years, the 2021 and 2022 cohorts have had elevated departure rates.
Employees hired in that time frame experienced an initially strong job market for alternative opportunities, followed shortly thereafter by a market downturn and elevated layoffs. After one year, nearly a quarter of 2022 hires left (24.1%), vs. 17.4% for 2020 hires. And three years out, over 61% of 2021 and 2022 hires were gone, compared to 56%–59% in earlier years.
Since then, there has been a cooldown in employee movement. With fewer open roles available, workers are choosing to stay put in their current roles. Layoffs have also declined over the past two years, though companies continue to make smaller, periodic reductions as they automate more workflows with AI agents.
There’s a lot more data to dig into when it comes to the job market, so stay tuned for our upcoming State of Startup Compensation report!
More from the Data Insights team:
VC Fund Performance Q2 2026
At the midway point of 2026, fund vintages from the late 2010s are continuing to create value for their LPs. But turning that value into concrete returns? That’s a different story.
State of Startup Compensation 2026: APAC & MEA
Curious about the startup landscape in the Asia-Pacific, Middle East, and Africa? We looked at hiring and equity compensation trends in those regions, with comparisons to the U.S. market.
Cheers,
Hamza Shad
Carta Insights
eShares, Inc. dba Carta, Inc.,
333 Bush Street Floor 23, Ste. 2300, San Francisco, CA 94104
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