It limits career growth for talented up-and-comers within the company: either individuals with management potential or existing managers with executive staff potential. If every new management job will be filled by an experienced outsider, then insiders quickly feel trapped and unable to advance in their careers, making them — particularly the more ambitious ones — more likely to leave the company.
At one previous employer that's how things always looked to my coworkers and me. Promotions occasionally happened from the bottom of the org chart to the lower management level, but most higher-level positions were filled by outside hires (though historically that wasn't the case, as several of the executives had started out as ordinary workers many many years earlier).
This is something I hope to avoid if I ever have the opportunity to scale a business to a large enough size that it would matter.
I know that posts like this give managers the warm fuzzies, but I doubt there are many entrepreneurial hackers who want to advance their careers slowly by proving themselves as an up-and-comer to some manager.
There is too much opportunity out there to waste your time in this kind of startup.
The link contains some ad campaign parameters that aren't necessarily relevant to readers coming from Hacker News. This may result in the site gathering misleading stats about its readership, though I doubt many would lose any sleep over such a triviality.
At one previous employer that's how things always looked to my coworkers and me. Promotions occasionally happened from the bottom of the org chart to the lower management level, but most higher-level positions were filled by outside hires (though historically that wasn't the case, as several of the executives had started out as ordinary workers many many years earlier).
This is something I hope to avoid if I ever have the opportunity to scale a business to a large enough size that it would matter.