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Employees That Stay In Companies Longer Get Paid Less

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Re: Employees That Stay In Companies Longer Get Paid Less

#91
Job hopping worked for me, the only time I've done so.

Back in 2011, a friend of mine offered an opportunity to switch from where I was working (a small community college in Southern California) to eBay in San Jose.

The jump in pay was pretty good (I believe I was making about $70K at the college at the time and the new job at eBay was starting me off at $90K, along with some RSUs and a bonus potential). (Sidebar: the pay was actually better initially when they first called me at $105K, but then they called me the next day and told me they had made a mistake and dropped it down to $90K...even though that really ticked me off, I ended up accepting anyway because it was still a pretty awesome opportunity for a small-town guy like myself to work for a big company like eBay).

I'm pretty risk averse so while I was there I was looking at a number of things, such as benefits (health / retirement), longevity / raise opportunities in the future, rent prices, work enjoyment etc. (looking at some of the comments people have made related to doing stuff in your 20's versus your 30's...I'm in my mid-20's but I probably act as risk-averse as a 40 year old). Even more so now that I'm married with a little one (and a bun in the oven).

Even though in $$ I was making considerably more, once I included the increased cost of rent in to live in San Jose (versus Imperial County, CA), I actually didn't seem to be making a whole lot more. Plus, I didn't quite feel like I had the same amount of responsibility / enjoyment out of the work I was doing compared to the projects I was able to direct / build at my old job.

So shortly after starting at eBay, when I found out my old job was getting upgraded into a management position (primarily due to the inability to upgrade a "regular" position to a higher salary) I opted to go back, even though my new salary would be a bit less than the eBay one ($80K) overall it'd be a decent jump since my overall costs were the same.

Since then, I've been able to complete all of those projects I came back to finish, along with a slew of new ones that have come up since then, but at the same time, I've had to start letting go of some of my development duties and replace them with management ones (mainly because my staff are non-developers...I'm really the only one handling online services and my other staff handle printing, publications/copying, and mail duties for the campus). It's been enjoyable, but at the same time I still want to become a better developer and it gets harder to do that at work now (and as someone else has mentioned, free time starts dwindling too).

Recently, after staying at the same salary for about two years, the management pay scale at the college was revamped, and as a newer manager I was able to receive a sizable increase because of it to my current salary of about $89K. For where I live that sort of salary is hard to find (i.e. it's damn near impossible).

Fast-forwarding to today, I like to keep my eye out for jobs (either in Craigslist or in the Who's Hiring threads each) in the Bay Area or closer, in San Diego, that would offer the "full package": a great location, environment / team, salary and while I've seen a few good options, it seems the most difficult thing to get across in an email or resume is demonstrating how much of an asset I could be as an employee.

I'm not really complaining (things are definitely in the good-great range currently) but I'm always looking for additional opportunities to continue learning and become better at writing software (and being able to focus on that full-time again would definitely be great, and I could still bring my additional skills as an entrepreneur/manager to the table).

In the meantime, I went ahead and scraped our local Chamber of Commerce websites and sent out some old-fashioned snail mail letters to local businesses asking if there were any pain points or tasks that take up a lot of employee time that could potentially be automated or solved with software. I figure if I can get some interesting projects out of that it would be worth it and give me an enjoyable coding project to work on that solved a problem. So far, I've only received one response from a local liquid fertilizer / trucking company so after finishing this message I'm going to go take a closer look at the info that business provided me on Friday to see what I can do for them :-).

P.S. I'm always willing to go and try out for a company...and luckily, I just happen to be on vacation for the next two weeks hint hint.

Re: Employees That Stay In Companies Longer Get Paid Less

#92

This article should create a fun discussion, but be aware that it's most likely completely bogus. I suspect it suffers from survivor bias: anyone who is in a position to jump ship and get a 20% raise consistently is not average. If you try to change jobs every 2 years and are not great at your current position, you'll likely be sorely disappointed.

As long as I've been in tech industry, 25yrs, the (at times only) way to get a raise was to change jobs. I've only have experience with small/mid-size companies, No "corporate"/"enterprise" type jobs. Expect dynamic is much different there.

I have been in the industry for around 11 years now. Seems that I have already reached the top of the payscale where I am (Spain).

I think there are companies out there that will pay more than what I am on, but trying to differentiate myself is becoming a problem. I don't have experience in NoSQL / big data / whatever buzzword, because I choose the right tool for the job, not the latest fad. Hell I even got an email from a company looking for "big data" developers. I asked what size there data was, as usually I see a relation database being better suited to most problems. No reply after that.

Re: Employees That Stay In Companies Longer Get Paid Less

#93
post #26
post #13

Earlier quoted context omitted.

I had one junior guy who had been working for some years confess to me that he hadn't learned much in all his years of working. The reason? He was always chasing better pay, which in software development almost always means changing employers, and he never stayed long enough to learn the ropes of any job. Granted, he was a junior developer, but I can see this applying to people with more "seniority" (measured in year…

How often did he change employers? I can't see how changing often somehow prevents learning. Even if he changes his employer every year, there should easily be enough time to learn.

About once a year, sometimes less. The constant shifting of tech stacks, architecture, domain, and also that he didn't have to maintain anything long term meant he was constantly at junior level.

Re: Employees That Stay In Companies Longer Get Paid Less

#94
To me it's pretty obvious and it's because of a simple, logical dynamic. If you apply for a better role within your firm, your current boss works against you. They may either block your move completely, or delay it. If you apply for a better role in another firm and get an offer, there's no way for your current employers to act against your interest.

Companies can foster better internal mobility but they can never change this basic dynamic.

Re: Employees That Stay In Companies Longer Get Paid Less

#95
post #83
post #64

Earlier quoted context omitted.

Can you give some concrete examples of in depth learning that one can't learn in a year?

Impact of architectural and design decisions. How hard to decipher certain code parts you are so proud about today are a year later - my experience is that people used to work on small projects or who change projects a lot generate hard to maintain/understand code. Learning non-trivial codebase often takes much more time. I worked on bigger projects and someone who worked there only six months would not be allowed to…

Most of the things you describe are deep, but also very narrow and domain-specific; frequently it is also very company-specific. Such knowledge is far less transferable than one might imagine.

Re: Employees That Stay In Companies Longer Get Paid Less

#96

Earlier quoted context omitted.

The thing is a lot of people value the security or aren't aware of the difference between market and their pay. Let's say this is 80% of people. If you're corporate HR, you can retain 80% of your top talent without big pay increases and promotions while knowing that you'll lose the top 20%. This may be palatable whereas it wouldn't be if you were only retaining 60%. I think Google and FB were the first to figure out…

You can retain 80% of your talent. You will be able to retain approximately 0% of your top talent, which is certainly a number less than 20% of your total talent pool.

You may be surprised how many top engineers have no idea what they're worth, and can't self-promote worth a damn. I've known some incredibly talented, capable people being woefully underpaid, and not ever trading up.

Re: Employees That Stay In Companies Longer Get Paid Less

#97

Switching jobs works well when developers are in their 20's. But I've found in the 30's that a number of factors combine to make it much less attractive: 1) Each jump becomes less and less. There's an invisible salary cap for software engineers. By the time a software engineer is in their 30's, they've jumped a few times and are already close to the maximum. 2) There are costs associated with switching jobs. There's…

A subtler effect is the income vs cost disparity. Suppose you make 60k and consider 50k to be a minimum income to live comfortably well a 70k job doubles your disposable income which is a big deal. Now suppose you make 120k and get a similar percentage bump to 140k. Except your minimum standard of living is still 50k. Sure, it's a larger Monitary increase but it's no where near doubling your disposable income and would have minimal lifestyle impacts.

Re: Employees That Stay In Companies Longer Get Paid Less

#98

Switching jobs works well when developers are in their 20's. But I've found in the 30's that a number of factors combine to make it much less attractive: 1) Each jump becomes less and less. There's an invisible salary cap for software engineers. By the time a software engineer is in their 30's, they've jumped a few times and are already close to the maximum. 2) There are costs associated with switching jobs. There's…

Young developers should save 50% of their after tax income.

In some ways, this industry is awesome: to be able to make six figures in your early 20s is an incredible benefit and potential head start on financial independence.

In other ways, this industry is incredibly cruel: you will run into age discrimination and the other headwinds mentioned in your mid 30s, if not earlier.

I tell the folks I mentor to think of themselves as professional athletes with a 15, maybe 20 year career.

Re: Employees That Stay In Companies Longer Get Paid Less

#99

Switching jobs works well when developers are in their 20's. But I've found in the 30's that a number of factors combine to make it much less attractive: 1) Each jump becomes less and less. There's an invisible salary cap for software engineers. By the time a software engineer is in their 30's, they've jumped a few times and are already close to the maximum. 2) There are costs associated with switching jobs. There's…

For 5. having a lot of experience interviewing the kids coming out of college can outweigh the fact that college was a long time ago. If you interview 1-2 candidates per week for 10 years, that's 500-1000 interviews!

Re: Employees That Stay In Companies Longer Get Paid Less

#100

Switching jobs works well when developers are in their 20's. But I've found in the 30's that a number of factors combine to make it much less attractive: 1) Each jump becomes less and less. There's an invisible salary cap for software engineers. By the time a software engineer is in their 30's, they've jumped a few times and are already close to the maximum. 2) There are costs associated with switching jobs. There's…

This is a great explanation. It's also called "golden-handcuffs". In your 30's, I think you need to start thinking about exit-strategy (saving enough to live financially independent), rather than hopping to yet another job. Then, you can job hop down in salary and do something more fun.

Effectively you need to become a force multiplier, leverage your high level experience into a role that allows you to add value to 10 to 20 people rather than just yourself. eg. You were a 10X coder, now become a 10X manager.

Also, if you spent your 20s building up contacts it becomes pretty easy to start a business serving the needs of your particular niche in the industry.

Management and starting a company that grows beyond 8 people require pretty much the same leadership skills.

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