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Employees who stay in companies longer than two years get paid 50% less (2014)

forbes.com

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Re: Employees who stay in companies longer than two years get paid 50% less (2014)

#31

Post by philsnow »

paholg wrote: post #18
tnel77 wrote: post #10

I wonder how stock options play into this. Assuming you have generous stock options in a thriving company, wouldn’t it be worth it to stick out 3-4 years for a majority of that equity?

With options, there's always a risk that they will be worth nothing, or very little. I would rather have some options in several companies than a lot of options in one to increase the chance that some of them will be valuable. That approach does require you to buy the options, whereas staying at one company means you can delay the purchase

Strategy 1: Stay for four years and vest your entire initial grant. Strategy 2: Stay 1-2 years and vest 25%-50% of your initial grant, and repeat 3x-1x.

If all the companies you work for have similar likelihood of doing exceptionally well, you've paid 4 years and gotten either one lottery ticket worth X (strategy 1) or 2-4 lottery tickets each worth 50%-25% of X. When you don't already have "enough" money, 25% of X is still life-changing, and if you can get 2-4 shots at it instead of 1, that can be a very workable strategy.

Re: Employees who stay in companies longer than two years get paid 50% less (2014)

#33

Post by datadrivenangel »

swiftcoder wrote: post #19
asaph wrote: post #3

This article is nearly 10 years old. Is this still true?

Yep. Inside Meta there was a robust network sharing offer and raise/promo letters. Someone hired in at your same level today would be making 10-20% more per year that you had been employed there .

So the hiring bump was going up faster than inflation? So after 2-4 years a new hire at the same level would be making almost at least 50% more than you...

Re: Employees who stay in companies longer than two years get paid 50% less (2014)

#34

Post by mr_00ff00 »

fsckboy wrote: post #11

this whole thing is sus. why isn't this a better explanation: High performing, "desirable" or "skilled" employees get enticed (i.e. rewarded) for jumping to a new employer. Average schlubs do not. explanation from TFA: Why are people who jump ship rewarded, when loyal employees are punished for their dedication? The answer is simple. Recessions allow businesses to freeze their payroll and decrease salaries of the new…

They mentioned “average” vs best employee, and the raises each can expect.

So that at least seems to imply that they adjust for that. Specially the line where you can get a 1% raise or a 10% new offer.

Re: Employees who stay in companies longer than two years get paid 50% less (2014)

#37

Post by rgrmrts »

BhavdeepSethi wrote: post #15

Tell this to NVDA employees.

Nvidia is obviously an exception. That’s like saying working at startups will lead to higher monetary rewards because “look at early Facebook employees”, whereas your expected pay after 4 years at a startup is almost always lower than if you just worked at a medium to large company that’s public. (See https://levels.fyi)

Re: Employees who stay in companies longer than two years get paid 50% less (2014)

#38

Post by paxys »

ApolloFortyNine wrote: post #14

Odd to see skepticism here, I thought this was well known. I've seen it first hand just a couple years ago where a large company was offering new hires a 20% bump, and yet when I told them I was leaving the counter offer was only a 3~% bump.

Yeah I'm surprised that people are still surprised by this. It is a pretty well known practice at large companies.

If you have been at a company for a few years getting promos and stock refreshers is always a struggle due to limited budgets and internal politics. On the other hand if you "boomerang" (quit and come back after a year or so) you will automatically get a higher title and a fresh new hire stock grant.

Re: Employees who stay in companies longer than two years get paid 50% less (2014)

#39

Post by mondomondo »

spauldo wrote: post #26

Yep, I see this in industrial automation. My company is particularly bad about it, since the corporate office is in Houston where you can hire people for the duration of a project fairly easily. Problem is, my part of the company isn't in Houston, so qualified employees are hard to find. So we need to hold on to people, which is hard when we rarely hand out raises. I do my best to train up my guys, but I know that th…

Stop suppressing wages and quit.
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