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Why don't tech companies pay their engineers to stay?

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Re: Why don't tech companies pay their engineers to stay?

#301
post #86
post #11

To chime in with my own anecdotal opinion that is likely to anger some people... in my experience most developers do their best work after about 6-8 months of starting a job at a new company, and that comes to an end after about 24-36 months of working at the same company. After that the vast majority of people just stagnate, get complacent, the job stops being interesting to them and they move on. After observing th…

I would look at inverting the causality there. If your data is accurate, I think it's better to say, "Most companies create developer jobs that get boring for people after 24-36 months." I was chatting with a Trader Joe's cashier Sunday. It turns out they change jobs every hour. That was a surprise to me; when I long ago worked in a grocery store, I was assigned to one position for 8 hours for every shift. Why does T…

I worked for a company where devs would rebel because teams were partly re-shuffled at the beginning of a new year! I guess people are different.

Re: Why don't tech companies pay their engineers to stay?

#302
post #11

To chime in with my own anecdotal opinion that is likely to anger some people... in my experience most developers do their best work after about 6-8 months of starting a job at a new company, and that comes to an end after about 24-36 months of working at the same company. After that the vast majority of people just stagnate, get complacent, the job stops being interesting to them and they move on. After observing th…

This is probably very dependent on the exact role and field, but o see your point.

Re: Why don't tech companies pay their engineers to stay?

#303
post #250
post #248

Earlier quoted context omitted.

That's untrue, a manager can put their employee into a performance improvement program (without even needing to inform them) which would block them from any internal transfers.

How does a pip effect improved performance when the employee isn't even aware they're in one? Is trying to switch teams the only way to discover that, or are there other indirect ways?

But HR sees it as a way to prevent a subpar employee from escaping the natural HR process. The fact that you have not been informed yet is just a failure of current management to follow process, but does not obsolve you of your subpar performance. HR is there for the company, not for you.

Re: Why don't tech companies pay their engineers to stay?

#304
post #4

Earlier quoted context omitted.

> [...] Jobs are "sticky" [...] My experience has been the opposite, in that sticky jobs are jobs held by people who aren't in demand. There's a balancing act for employers ("brilliant but flighty" is less desirable than "good but sticky") so it's certainly possible to argue that jobs being sticky for less-than-brilliant people is a good thing... but in my experience, jobs aren't sticky because of inertia for brillia…

I think people who are "brilliant" at interviewing will job hop frequently, while people who are "brilliant" at actual job performance will tend to be promoted and incentivized to stay internally.

This just isn't true. Find me any data that any level of performance results in better compensation than changing jobs every 2-4 years and I'd be willing to at least consider the idea, but it just doesn't exist.

Re: Why don't tech companies pay their engineers to stay?

#305

Earlier quoted context omitted.

Pretty much. Honestly if I can get a 20% pay raise by switching jobs, my job is to do the absolute minimum amount I can do to stay under the radar, why would I try? If I wanted to try I would go work somewhere else. There's just a complete mismatch in how much the company I work for values the experience and skill I gain over time and how much everyone else values it. Over time recruiters come to me with opportunitie…

"my job is to do the absolute minimum amount I can do to stay under the radar, why would I try?" Because it's a form of systematic corruption, maybe the biggest kind of corruption in the White Collar world. The objective is to 'do a good job' , not the minimum, in every endeavour. Doing the 'bare minimum' to keep a job is actually generally far under-performing, as most companies won't generally let people go. It's h…

Doing a good job, and doing the minimum job, are not mutually exclusive. You can do a good job with the minimum amount of work required to stay employed. There's no reason to do more, unless you're compensated for doing more.

Re: Why don't tech companies pay their engineers to stay?

#306
post #11

To chime in with my own anecdotal opinion that is likely to anger some people... in my experience most developers do their best work after about 6-8 months of starting a job at a new company, and that comes to an end after about 24-36 months of working at the same company. After that the vast majority of people just stagnate, get complacent, the job stops being interesting to them and they move on. After observing th…

> in my experience most developers do their best work after about 6-8 months of starting a job at a new company

Fair. That's about as long as it takes me to realise "nothing fundamental is going to change", so I tend to start losing motivation at this point.

Thankfully I'm a contractor so that's about when I exit anyway. Everybody wins!

Re: Why don't tech companies pay their engineers to stay?

#307

Earlier quoted context omitted.

Some things in life are like the laws of physics. You will simply never make more money than your manager, no matter how many economic productivity arguments you can make.

This is not one of those things: https://www.quora.com/Is-it-common-for-a-software-engineer-t...

I do not believe a couple of Quora replies are substantial enough evidence to prove an industry wide trend. How do we know those people on Quora aren't prone to sampling bias?

Re: Why don't tech companies pay their engineers to stay?

#308
post #139
post #3

> The hard truth that many companies struggle to wrap their heads around is that they should be paying their long-tenured engineers above market rate. From an ethical point of view, maybe. From a rational point of view, maybe not. Jobs are "sticky" — it's a pain to apply for jobs, arrange interviews, deal with the possibility of getting rejected. And if you do get an offer and accept you will be leaving colleagues th…

> There is a very real salary range between "low enough that I'll think about applying for other jobs" and "so low I'll actually start applying for jobs". True, the other side is if you're trying to hire and pay the same industry salary, people aren't going to move because what's the point? If you're trying to hire a lot of people you have to pay more than average just to get people interested.

You can't nab people with market rates, but you can get new hires with market rates

Re: Why don't tech companies pay their engineers to stay?

#309
post #72

Many flaws with the argument, here is one: It is hard if not impossible to attribute an individual employee's performance to company growth. Many variables can impact company growth - so even if engineering does their job,product many not and vice versa. Even if everyone does their job exceedingly well, a sub optimal strategy could kill the company. Or the market could shift. How do you account when company stops gro…

> It is hard if not impossible to attribute an individual employee's performance to company growth. Many variables can impact company growth - so even if engineering does their job,product many not and vice versa.

A somewhat related anecdote that I love: In an online lending company where I was a manager before, I had the Data Science team reporting to me. At some point, one of the interns created a variable that improved the ML risk scoring model in such a way that the loan default decreased in about 2%. That is HUGE for a portfolio that has something like 10% default. This intern's variable saved the company a tremendous amount of money... yet the company did not give him anything for an improvement that was 100% measurable in $.

Re: Why don't tech companies pay their engineers to stay?

#310

> If a developer of a certain caliber is able to demand a given salary on the open market, why isn’t their existing company paying them that very same amount? One possibility would be it's because of the price point that the manager has in his head for that individual. I don't remember the actual term from Dan Ariely's book, but it was about becoming attached to the first price you hear. So if you know the current sa…

I think the term you may have been looking for is "anchoring."
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