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Ask HN: Why do managers tend to make more money than engineers?
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Re: Ask HN: Why do managers tend to make more money than engineers?
#2In most companies, business knowledge is key. The more knowledge you have about how the business operates the stronger you are. Beautifully architectured applications are great, but you need to be able to make the right choices for the business, rather than simply complete task from start to finish.
On top of that, managers generally got into that position because they are solid communicators, work well in teams, and have organization skills.
In our company, all managers were engineers.
Re: Ask HN: Why do managers tend to make more money than engineers?
#3In most companies, business knowledge is key. The more knowledge you have about how the business operates the stronger you are. Beautifully architectured applications are great, but you need to be able to make the right choices for the business, rather than simply complete task from start to finish. On top of that, managers generally got into that position because they are solid communicators, work well in teams, and…
" … because they are solid communicators, work well in teams, and have organization skills."
And, in my experience, because those communication skills result in them asking for more money more often - and having good explanations ready about why it'd be a good outcome for both the manager and the company. Engineers are, to a first approximation, all woefully bad at asking for more money.
Re: Ask HN: Why do managers tend to make more money than engineers?
#4Because they have better, refined stakeholder management skills.
Re: Ask HN: Why do managers tend to make more money than engineers?
#5The answer is pretty simple and has broader implications than an immediate discussion about managers. The answer is people make more money because they have more leverage.
Managers make more because they're seen as having human leverage. Start-ups can make more because they have technology leverage (think about this has changed with the advent of cloud computing) Banks can make more because they have financial leverage. Etc.
Re: Ask HN: Why do managers tend to make more money than engineers?
#6[deleted]
Re: Ask HN: Why do managers tend to make more money than engineers?
#71 manager, 9 engineers (or more).
The ratio of investment per employee might not align up to the investment in function - the investment might be spread 20%/80% between both functions.
I've worked with (uh, "under" feels insulting) really good managers who truly earn their pay & it has given me a different perspective of what they do to make "things happen".
I've cut that down into literally four levels of management - delegation, negotiation, inspiration & vision. Those who merely delegate are hard to work with, those who negotiate for you are good, those who inspire you to pick up risks are great and those who can see ahead six months to realign/nudge a team to build new skills is just awesome.
On another note though, I'd rather have no management than bad management - there are those who do none of those things, while fulfilling Peter Principle.
Re: Ask HN: Why do managers tend to make more money than engineers?
#8It's about power, and money is how you keep the score.
Two scenarios:
1. People want to be managers to have more power/control/influence... Then money is needed to keep the score up
2. They happen to become manager, and in a hierarchical structure (company) power/money is how you enforce order
Re: Ask HN: Why do managers tend to make more money than engineers?
#9Kind of like asking why those engineers still make +100x more than the workers at the factory in China that manufactures their computers and smartphones.
It's called capitalism and it thrives on inequality. Whoever can be exploited - will be.
Re: Ask HN: Why do managers tend to make more money than engineers?
#10Not always true. If you are a decent engineer consulting/contracting in a field like big data, data warehousing, analytics etc you will make far more than any manager short of C level.
If you are talking about normal salary jobs then it is simple. Managers take on risk and responsibilities. Engineers largely don't. If an engineer screws up the damage is largely minimal. If a manager screws up then serious money can be lost.