Obligatory MonkeyUser: https://www.monkeyuser.com/2020/new-hire/187-new-hire.png
When new hires get paid more, top performers resign first
101–110 of 225 posts
Re: When new hires get paid more, top performers resign first
#102This is happening to me in real time.
New hire will have higher job title than me and more pay but will be taking over my work.
2 people on the team already put in their notices.
Re: When new hires get paid more, top performers resign first
#103Earlier quoted context omitted.
That's better than being forced to do interviews at other FANGs, getting offers and only then getting raises matching those offers. I heard Netflix suggested this as well, for determining the current "market rate". Offloading the market research to engineers basically.
Yup! We were encouraged to take interviews at other companies for multiple reasons. One was to report back the offer as data for the HR team. They used that both in level setting new offers as well as making sure you got an appropriate raise. It was also because Netflix understood that if you found a better job, it was better for both you and Netflix to leave and take that job, because it meant that you weren't truly…
It’s an awesome mentality, but I think it comes out of Netflix being a company that sells to consumers and not enterprises. I work at a big cloud company. We don’t have enough engineers to do the work our customers want us to do. Each piece of work comes from someone spending millions of dollars a year that has executive visibility. Letting someone go means some committed project goes unfunded and an unhappy customer.
Re: When new hires get paid more, top performers resign first
#104I just had a very valuable teammate quit this week from lack of salary progression. New-ish grads are making more than him for much lesser jobs. The business refused to do even a token salary increase because of the ‘economic climate’ Now a critical project won’t happen on time, which will cost the company many magnitudes more in revenue than it would have cost them with a token increase. Oops.
What do you mean “cost them money” I legitimately can’t think of situation where releasing a product behind deadline would cost a business money? Obviously they just allocated resources more efficiently because they have fewer people. Likely they made more money because of increased demand.
In addition to the other good answers here:
If your product isn't ready and your competitor's is, you lose contracts and possibly life time customers.
Re: When new hires get paid more, top performers resign first
#105Re: When new hires get paid more, top performers resign first
#106Earlier quoted context omitted.
Companies should understand when their business hangs on people, you need to keep the people happy. Hiring people off the street for more money than people with 20+ years of experience isn't a good way to keep experienced workers employed.
The problem is - historically it hasn't bitten companies badly enough that they stop doing it. On aggregate, you can get away with massively underpaying your top talent and overpaying new hires - most of which aren't good and will go to other companies before they're even moderately productive. I question why they're so obsessed with hiring so many new people to do basically nothing. That's the reason they have to ov…
I would argue it does bite them, but by the time it does it's someone else's problem.
Re: When new hires get paid more, top performers resign first
#107Earlier quoted context omitted.
That's better than being forced to do interviews at other FANGs, getting offers and only then getting raises matching those offers. I heard Netflix suggested this as well, for determining the current "market rate". Offloading the market research to engineers basically.
Yup! We were encouraged to take interviews at other companies for multiple reasons. One was to report back the offer as data for the HR team. They used that both in level setting new offers as well as making sure you got an appropriate raise. It was also because Netflix understood that if you found a better job, it was better for both you and Netflix to leave and take that job, because it meant that you weren't truly…
Sounds pretty ideal! But it also sounds like you're talking about all of this in the past tense... why did you end up leaving, if you don't mind me asking? :)
Re: When new hires get paid more, top performers resign first
#108Programming as theory building has been the rock that explains how stupid companies are with how they turn retaining employees into a financial game.
https://pages.cs.wisc.edu/~remzi/Naur.pdf
Your employees ARE your company. Every time you lose an employee you are cutting a chunk out of your company. Sometimes this is good. But if you lose a top performer its like losing your kidneys. You are going to be on dialasis for a long time.
...this metaphore makes me think about how insane it would be for a person to look at their organs as a financial puzzle to solve. Like what if dialasis was less expensive than not selling your kidneys.
Re: When new hires get paid more, top performers resign first
#109Earlier quoted context omitted.
In finance this is called price discovery. In the labor market it’s called waiting until someone is one foot out the door. It’s much more expensive to correct the situation once someone has already decided to leave.
But corp logic: it's cheaper to raise ONE top performer when he wants to go than to raise EVERYBODY (even those not interested in leaving) to match market
No argument, but if I'm interviewing and get a better offer, I'm probably gonna leave.
Further in some corporations, interviewing for other positions is a bright shiny red flag for that person to be let go or fired. Even if they accept the counter offer.
Re: When new hires get paid more, top performers resign first
#110With higher pay plus less experience comes entitlement. It’s the attitude of I shouldn’t have to do x, y, or z . Usually it’s because they can’t do those things and in full fear mode vomit some bullshit excuses. That, more than anything else, is why I’m in another line of work full of former programmers who are eager to do something else.
What line of work is full of former programmers?
Nowadays, that's the unemployment line.