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It's become cliche for companies to complain about a talent shortage while wage statistics don't rise in response. I've heard restaurant owners complain about n
by TheCowboy 9y ago
It's become cliche for companies to complain about a talent shortage while wage statistics don't rise in response. I've heard restaurant owners complain about not being able to attract and retain quality wait staff while they pay the tipped minimum wage (less than $3 per hour).
This attitude has to change.
If a company can make significantly more money by hiring someone, then they should be aggressively increasing wages to signal to the market that they are serious. It's basically refusing to participate in the free market, or a complete lack of understanding of how markets work.
Business managers frequently act like they understand economics better than economists yet this attitude should telegraph a level of cluelessness that makes them unfit to manage a hiring process.
Everyone wants to pay less and get more talent. If you can't afford to pay more then compete on other aspects---allow remote work, more flex-time, and so on. Try something different in your interviews. Offer apprenticeships.
Sometimes it's not even a pure talent shortage that force increasing wages. In San Francisco the housing shortage and lack of support for new construction wipes out a lot of gains that come with higher salaries.
- mabbo 9y ago> In San Francisco the housing shortage and lack of support for new construction wipes out a lot of gains that come with higher salaries. You can even see that problem get worse as people leave. Fantastic dev I worked with moved from Seattle back to India. She said that yes, she made more money in Seattle, but cost of living was so low in Bangalore that she effectively made a lot more money there. Coupled with her family being closer, it made perfect sense.
- debacle 9y agoYou can retire comfortably in many places in India on 1 year of a developer's salary in the US.
- huac 9y agoIf you don't care about buying 'big ticket' items e.g. iPhones, MacBooks, VR, etc, - this is true. But these items don't change in price depending on where you are, and are likely much harder to buy as a result.
- claudiulodro 9y agoWould you rather own a house and a Xiaomi phone or never be able to afford a house and own an iPhone? iPhones are cool, but houses are cooler.
- snewk 9y agoand houses in seattle are a lot 'cooler' than houses in bangalore
- phinnaeus 9y agoNot if they actually build houses with A/C in Bangalore. (mostly joking)
- livingparadox 9y agoDoes it matter if the house in seattle is cooler if you're never going to be able to buy it?
- toomanybeersies 9y agoSome of us have no desire to actually own a house, as far as a home goes. I'm no opposed to buying a house for investment, but have no real urge to live in my own house.
- chii 9y agounless the difference between your rent spend and a hypothetical mortgage is well invested, you're very likely worse off renting. after all, your rent is paying someone else's investment mortgage!
- AndrewUnmuted 9y agoRental life is a simpler life. It means someone else is responsible for fixing your sink when it leaks. The biggest financial risk renters take is not getting their deposit back due to necessary repairs when they vacate at the end of their lease terms. And, from an investment point of view, maintenance may not be worth it if you believe that housing prices are too high and that a correction will be coming in the short to medium term. Why spend your own money on repairs if your house's value is going to tank in a few years anyway?
- ben_jones 9y agoThe problem is companies like this are constantly rewarded by young drop-outs and fresh grads who have faced adversity entering the job market and will take any job. These people are living with their parents and have never been truly employed. They will take these jobs and work their butts off, validating these same managerial processes. You don't give them enough credit. This process works for them sometimes. And sometimes is evidently enough.
- TheCowboy 9y agoI think this arguably reinforces my point if a company has a process that works yet they complain about a talent shortage. Part of this complaining can be an attempt to influence/distort government policy, justify a flawed or exploitative hiring process, or managing who to blame when they miss a quota. I definitely agree that what you said is part of reality for some companies, which is why I think it's important to aggressively point out that there are solutions when the "skill shortage" is brought up. Additionally, if underpaying younger talent is prevalent, then all the more reason a company should offer competitive salaries to recent graduates when faced with a shortage. They'd start booking some easy wins.
- rhizome 9y agoIt would seem at least a little disingenuous for a company to hire new grads who will take any job and then turn around to complain about skills shortage. I'm not saying that grads don't ever have skills, but if the company tends to hire desperate noobs then they aren't (or are just barely) shopping for the skills they say they need.
- mahyarm 9y agoPeople complain about their costs going up, just like most people complain about their rent / housing costs going up.