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Employees That Stay In Companies Longer Get Paid Less

forbes.com

191–200 of 207 posts

Re: Employees That Stay In Companies Longer Get Paid Less

#191

This "loyalty penalty" is far from new. It was totally obvious to me, and to many of those around me, over twenty years ago. If you stayed at one company, you'd fall behind the industry-wide trend. You'd start to see people who were more junior overall, and clearly less familiar with your product, hired with salaries above yours. If you wanted to keep up with that industry trend, you were forced to keep moving. I eve…

Who generates work through staff turnover? HR

Who sets retention policies? HR

Re: Employees That Stay In Companies Longer Get Paid Less

#192
post #64

Earlier quoted context omitted.

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

Oh, lawd, help me. Kidding. You ask a legitimate question. This is by no means a comprehensive answer, but... 1. Domain knowledge. I think most of us enjoy the creative and problem solving parts of software engineering. That takes domain knowledge and domain knowledge takes time. You will get an intro to your domain in a year, but mastery? I would bet against it. 2. Working on a hard project from start to finish and…

Domain knowledge is only useful if you work in the same domain year after year. That's often not the case. Atleast I've worked with three completely different domains the past year.

Re: Employees That Stay In Companies Longer Get Paid Less

#193
post #150

HR is really a problem here (at least in the software industry). Pay is usually based on title and how many people you manage, but I think that's pathological for managing developers because developers aren't interchangeable. You have huge variances in skills and knowledge. The thing is, development skills scale in a way most job skills can't. You can have at developer that has 10x more impact than other developers.…

>>I think that's pathological for managing developers because developers aren't interchangeable. Actually in most cases we are super easily interchangeable. Java related technologies, that involve interacting with databases and presenting data in some way(HTML etc) is what most business software is out there. Developers working in such domains are pretty easily replaceable. Almost like cogs in a wheel. Pay is based o…

This is really dependent on how much of the "developer" role is developing and how much is software engineering. Are the developers literally taking design documents (UML diagrams, use cases,etc) and just typing in the code or are they actually doing some analysis.

There is also the domain knowledge acquired by the developers over the course of time. I will tell you that I was part of a transition to an outside contracting company for a legacy site. The business knowledge gained and the ability to deliver solutions as a result of that enabled a much faster time to market than these guys could ever provide.

Re: Employees That Stay In Companies Longer Get Paid Less

#194
post #150

HR is really a problem here (at least in the software industry). Pay is usually based on title and how many people you manage, but I think that's pathological for managing developers because developers aren't interchangeable. You have huge variances in skills and knowledge. The thing is, development skills scale in a way most job skills can't. You can have at developer that has 10x more impact than other developers.…

>>I think that's pathological for managing developers because developers aren't interchangeable. Actually in most cases we are super easily interchangeable. Java related technologies, that involve interacting with databases and presenting data in some way(HTML etc) is what most business software is out there. Developers working in such domains are pretty easily replaceable. Almost like cogs in a wheel. Pay is based o…

This is really dependent on how much of the "developer" role is developing and how much is software engineering. Are the developers literally taking design documents (UML diagrams, use cases,etc) and just typing in the code or are they actually doing some analysis.

There is also the domain knowledge acquired by the developers over the course of time. I will tell you that I was part of a transition to an outside contracting company for a legacy site. The business knowledge gained and the ability to deliver solutions as a result of that enabled a much faster time to market than these guys could ever provide.

Re: Employees That Stay In Companies Longer Get Paid Less

#195
post #116

This "loyalty penalty" is far from new. It was totally obvious to me, and to many of those around me, over twenty years ago. If you stayed at one company, you'd fall behind the industry-wide trend. You'd start to see people who were more junior overall, and clearly less familiar with your product, hired with salaries above yours. If you wanted to keep up with that industry trend, you were forced to keep moving. I eve…

There's also the pervasive attitude that people will stay because of the projects, culture, people, etc., and don't care so much about the money. That can be true to a certain extent[1], but I think the people who make salary-bump decisions think way too much of it. [1] I suspect this is actually very true when an employee starts fresh at a new company, but, over time, the money (or lack of it) becomes more and more…

I cringe when I hear people say they love programming so much they'd do it for free. It may be true but don't say it out loud!

Re: Employees That Stay In Companies Longer Get Paid Less

#196
post #78

Earlier quoted context omitted.

> I even know people who deliberately did "out and back" jumps to leap-frog over others at the same original company. This is commonly known as a valid strategy at the place I work. It's very difficult to come in giving a shit about my code when the future of my position is a dead end.

The company I previously worked at advertised a position to work alongside me at my same level doing the same work, the salary being offered was 50% higher than my salary at the time. I took this to my manager and all he had to say was "there's nothing I can do, I don't set these things" It's downright insulting to see this kind of behaviour.

They were obviously discriminating against you. Equal pay for equal work, right?

Re: Employees That Stay In Companies Longer Get Paid Less

#197

Earlier quoted context omitted.

Oh, lawd, help me. Kidding. You ask a legitimate question. This is by no means a comprehensive answer, but... 1. Domain knowledge. I think most of us enjoy the creative and problem solving parts of software engineering. That takes domain knowledge and domain knowledge takes time. You will get an intro to your domain in a year, but mastery? I would bet against it. 2. Working on a hard project from start to finish and…

Domain knowledge is only useful if you work in the same domain year after year. That's often not the case. Atleast I've worked with three completely different domains the past year.

Exactly. And you can't learn domain knowledge that quickly. And there is a pile of money and senior-level engineering positions available to those who can marry understanding of the technology with domain expertise.

Re: Employees That Stay In Companies Longer Get Paid Less

#198
post #166

Earlier quoted context omitted.

Warren Buffett does not pay market salaries to his top level managers. Those managers can get a significant hike if they switch yet most stick with Buffett because they like working for him.

Though you haven't really provided anything to backup the claim that Buffet's managers stick with him (I'd honestly be interested to read more about that) I'll take it at face value, as it seems sensible. However, as a specific example this is at the extremes, to the point of being absurd really. Few, if any, companies are their industry's equivalent of Warren Buffet, nor will they ever be. That doesn't necessarily m…

Buffett said it himself in couple of his annual reports although I cannot remember right now which one.

I will reply tomorrow if I can remember till then you can read what Charlie Munger (Berkshire Hathway's VP) has to say on this

http://www.gsb.stanford.edu/sites/default/files/38_Munger_0.... ( Page 3)

and check out Alice Schroeder's comments

https://www.youtube.com/watch?v=PnTm2F6kiRQ&feature=youtu.be...

Re: Employees That Stay In Companies Longer Get Paid Less

#199
post #80

Earlier quoted context omitted.

> Saying "we can only give you this much because your title is X and we don't have an open management position, but we really value you!" is a great way to lose your best people. This resonates with me so much. I've left a few companies after having conversations which ended with my manager saying exactly this. In most cases they have ended up hiring somebody else at a salary higher than mine. It really confuses me.…

That is what you get when you isolate decision maker from consequences of his decisions. HR does not feel the pain of you leaving, so he does not care. However, he has trouble to find a new person for low salary, so he is forced to raise the offer.

HR may not see the loss of institutional knowledge of high worker turnover, but they do see a lot of the more monetary costs: with all that constant hiring of replacements going on, HR sure needs a bigger budget next year! We might be looking at an incentive problem, amongst others.

Re: Employees That Stay In Companies Longer Get Paid Less

#200
post #181

Earlier quoted context omitted.

They pay significantly more. Microsoft is another that pays a lot, especially to poach from those three. It is not uncommon for a very good engineer with 5+ years experience to earn above $400K / year (total = base + bonus (if issued) + stocks).

My ass

Here's a recent, public example that I can recall.

financialsamurai.com/who-are-the-top-1-income-earners/

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