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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?

#51

One hypothesis, admittedly based on a premise I don't believe. We've been told by a lot of sources that 10x engineers don't exist, and only the team matters [1]. Suppose this is true, or at least suppose the company decision makers believe this. In that case, there is no point paying any engineer more than 2-3X what another one makes - why pay more for the same productivity? In contrast, management matters a lot. All…

I think you're right about the mental modelling that leads to these market outcomes.

I am perplexed by the weak arguments from sources -- comparing dev work to 9 mothers trying to have a baby in one month? What point are they trying to even make there? My crystal ball is cloudy but I think they mean delivery time is immutable? The other, saying productivity differences encourage lack of communication? That's not even relevant to the exploration of the fact of how much productivity difference there is!

The whole question is somewhat beside the point: I don't understand the benefit of homogeneity. I don't have amazing productive work every minute of the day, heck, I don't have good productive work every week of the year. Making a system that homogenizes output would limit _all_ employees, because we all have times we are 100x better than us at our worst.

And yet, in order to get predictability, we strive to build systems where engineers are cogs, because if things are predictable, targets are met, and managers get their bonuses. But it ultimately doesn't serve the best interests of the business.

Re: Ask HN: Why do managers tend to make more money than engineers?

#52
post #43
post #31

Earlier quoted context omitted.

I find managers who see themselves as visionary hero's, who mentors subordinates often forget engineers are capable people with their own ideas, self motivated with skills they probably don't have themselves. They dont need to be lead, but helped to self organise and to stop external interference.

" They dont need to be lead, but helped to self organise and to stop external interference. " That's quite a whole lot more difficult to be done, than said. I've been learning that first-hand for the past year, especially when it comes to subordinates that are not too keen on being dealt with in a "conventional" manner.

Conventional management is not really meant for knowledge workers.

Re: Ask HN: Why do managers tend to make more money than engineers?

#53

Don't get too caught up on which job role has more risk, responsibility, or communication skills. Salaries are apportioned based on how close a job role is to the company's revenue stream. Executives come out on top because they control the money and payscales. Sales is often second because they can very easily point to new revenues and say "I brought that in". Profit center staff (most Valley engineers) would be som…

I'm so glad this post is at the top vs. the other "it seems fair to me" replies. I also find it illuminating to compare to three other careers that I consider intellectually similar to engineering in that they are not "management", and yet they capture way more of their value in their corporate zenith (or did at some point in time when their reputations as careers were made). - Lawyers: Lawyers aim to make partner. T…

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Re: Ask HN: Why do managers tend to make more money than engineers?

#54
Granted, I haven't worked for a lot of different companies, and haven't experienced a silicon valley style labor economy. What I've seen leads me to suspect that nobody would want to be a manager, if managers weren't offered more money and social status.

Every case that I've seen where someone got bumped up to management, was right after the birth of a child. Suddenly, their CAD screen doesn't look so green any more. One engineer was lamenting to me his lack of advancement, and I told him that he should become a project manager. His response: "Why should I work that hard? I want my evenings and weekends." I made the jump when my first kid was born.

Management seems easier and more social, but I think it's because the ease and social perks (private offices) are part of the package of incentives to make people want to do it. I was a manager for a few years. It was stressful for me because it was way more political. As an engineer, I could solve problems by innovating. As a manager, I had to solve problems by moving resources from one pot to another, or watching people negotiate over endless minutiae. If a company has a budget, then management is a zero-sum game. That's why it's stressful. Everybody is your competitor.

And the boredom was crushing.

Re: Ask HN: Why do managers tend to make more money than engineers?

#55

One hypothesis, admittedly based on a premise I don't believe. We've been told by a lot of sources that 10x engineers don't exist, and only the team matters [1]. Suppose this is true, or at least suppose the company decision makers believe this. In that case, there is no point paying any engineer more than 2-3X what another one makes - why pay more for the same productivity? In contrast, management matters a lot. All…

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Re: Ask HN: Why do managers tend to make more money than engineers?

#56
post #45
post #7

1 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…

Great insight with the four levels! Was there any book or resource that helped you shape that view?

> Was there any book or resource that helped you shape that view?

Haven't read that anywhere, but is just a precis of something from one of my drafts.

That said, the idea was to express that as clips from "Better Off Ted" :)

Re: Ask HN: Why do managers tend to make more money than engineers?

#57
There's no one answer. Instead, it's a combination of factors that others have touched upon - closeness or influence relative to the decision makers, "force multiplier" effect, good old supply and demand. Instead of reiterating the point, I'm just going to get right in the face of the commenters who think it's unjust that managers tend to make more. I'm just a developer myself, I've never been a manager, but come on, let's not be total a-holes about this.

(1) It's just wrong to measure managers by the same yardstick one would use for individual contributors. Of course people who perceive themselves as the most technically proficient believe that less technically proficient managers should make less, but there's no rational business case for awarding pay on that basis. What managers do and understand might not be as technical, but that doesn't mean it's less important for the bottom line.

(2) You're probably wrong about the technical-profiency thing anyway. Sure, managers might not understand your favorite two-year-old technology as well as you do, but it's highly likely that they know some other still-relevant technologies better than you and have a better "gut feel" for technology overall.

(3) Business sense and general technical judgement are harder to hire for than narrow momentarily-relevant skills. Also, what managers do is often a lot less fun than what developers do. Who wants to spend all day every day in meetings or dealing with budget/personnel issues or balancing long-term development with the fire drill of the day? Thus, even if what managers know were less intrinsically valuable than what developers do, the demand for good managers would still drive up pay.

To flip this on its head, think for a moment about what the world would have to be like in order for managers not to make more (in general - I know there are already plentiful exceptions). Then you would have less technically able managers, making worse decisions, not resolving interpersonal issues, pushing more work onto the team or onto HR. Whee. What fun. Instead of grousing about it, accept it as the way as the world and get on with getting ahead yourself.

Re: Ask HN: Why do managers tend to make more money than engineers?

#58
A possible reason: management career tracks in larger companies are among other things a mechanism for retaining senior engineers; in that sense, the "management" role is overloaded (most companies also need managers intrinsically, to do the management job), and the manager-managers benefit from the premium the company pays the (for lack of better term) vanity-managers.

Re: Ask HN: Why do managers tend to make more money than engineers?

#59
It sort of depends on what you mean by this. If you are asking why someone who manages engineers is making more money than the engineers they manage a couple of things come into play:

- Frequently engineering management plays a double role, both senior engineering roles (guidance, architecture, big design, project/product management etc) and "people" management (hiring, salary negotiations, compliance, etc). It is relatively easy to argue (though not necessarily correct) that someone with more things to be responsible for, "deserve" more compensation.

- Frequently engineering managers are elevated to that role because they either have aptitude, interest, or experience translating engineering feats into business relevance (ie revenue generation or cost reduction). It is relatively easy to argue (though not necessarily correct) that someone who captures more money for the business "deserve" more compensation.

- Compensation is also largely a market transaction. Managers tend to have more accurate information about both market rates and what the business can bear. This serves them in the form of more optimal negotiations, both in relation to the engineers that work for them and with their own compensation negotiations with other management.

Re: Ask HN: Why do managers tend to make more money than engineers?

#60
post #51

One hypothesis, admittedly based on a premise I don't believe. We've been told by a lot of sources that 10x engineers don't exist, and only the team matters [1]. Suppose this is true, or at least suppose the company decision makers believe this. In that case, there is no point paying any engineer more than 2-3X what another one makes - why pay more for the same productivity? In contrast, management matters a lot. All…

I think you're right about the mental modelling that leads to these market outcomes. I am perplexed by the weak arguments from sources -- comparing dev work to 9 mothers trying to have a baby in one month? What point are they trying to even make there? My crystal ball is cloudy but I think they mean delivery time is immutable? The other, saying productivity differences encourage lack of communication? That's not even…

Homogeneity in developers is useful in the same way that homogeneity in servers is; it reduces the dimensionality of the problem. Instead of having 1 unit of 20 different resources to allocate, you have 20 units of 1 resource.

That said, sometimes (read: 10-100x developers) you sometimes have only 1 unit of 1 resource. And if you don't pay for it, you wind up with 0 units.

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