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I've long thought that developers don't realize how much value they really have. If they're in the right place, they're wickedly underpaid for the value they cr

by nhance 5y ago

I've long thought that developers don't realize how much value they really have. If they're in the right place, they're wickedly underpaid for the value they create.

cblconfederate 5y ago
i think (the US ones) are extremely overpaid for the quality of software that goes around. It's just a result of captive markets
- HeyLaughingBoy 5y ago
  Again, they're paid for value they create. Don't equate quality of software with the value of that software. A simple example: a crappy $500 beater may have immense value because it gets me to work every day, even if the door is held closed by a coat hanger and I have plastic sheet taped over the missing back window.
  - cblconfederate 5y ago
    most of the value they create is raising the company's stock by simply existing. Whether they are valueable to other people is another thing, for one, if the value they created to other companies was comparable, there wouldn't be such extreme inequality in valuations of tech vs rest of the economy
  - adam_arthur 5y ago
    Employees tend to get paid on the basis of supply and demand in the labor market. The value you create just puts a ceiling on the equilibrium pay. Simple thought experiment. I have a button that creates a million dollars anytime it's pressed. How much should/do I need to pay for somebody to sit there and press it all day? In fact you can probably pay minimum wage because low skill work and easy to find people. That being said, as an employee you can leverage the unique value you provide into higher pay, assuming you're able to persuade your employer. E.g. imagine you could press the button twice as fast as anybody else... Suddenly you're in a strong position to negotiate for a million dollars per press. But the value you provide has to be unique relative to the labor market. Looking at unique value, and ability to convince others of that unique value, is more relevant than the absolute value you create.
benhurmarcel 5y ago
Developers, just like almost everyone else, are not paid according to the value they create but according to the market. It doesn’t matter if you create $1M/month, if somebody else is willing to do it for $5000 that’s what you’re getting.
- sentinel 5y ago
  You can get some of the value thru company stocks, but yes, not all of it. Market still decides. This is what you "sacrifice" for a predictable paycheck... think you're worth more? You can always try making it on your own.
- 6gvONxR4sf7o 5y ago
  That’s why it’s great that the comp and benefits are skyrocketing.
adrr 5y ago
I was tech and product leader of a company that just IPOed. When I joined the site was so slow and key features were not functional. The site was built by contractors and had a conversion rate of 2.8%. With of a team of 15, we rebuilt the frontend and reduced page rendering time to under 1 second with a SPA and page optimizations. Conversion rate skyrocketed to 7% accelerating annual revenue from $50m to $400m over a few years. The value each engineer contributed was hundreds of millions in value to the company. I also did the same with another company that had a failing subscription platform built by cheap foreign contractors. Built a talented team and a real platform and that company also successfully exited for 10 figures. You get what you pay for.

by nhance 5y ago

I've long thought that developers don't realize how much value they really have. If they're in the right place, they're wickedly underpaid for the value they create.

cblconfederate 5y ago

i think (the US ones) are extremely overpaid for the quality of software that goes around. It's just a result of captive markets

HeyLaughingBoy 5y ago
Again, they're paid for value they create. Don't equate quality of software with the value of that software. A simple example: a crappy $500 beater may have immense value because it gets me to work every day, even if the door is held closed by a coat hanger and I have plastic sheet taped over the missing back window.
- cblconfederate 5y ago
  most of the value they create is raising the company's stock by simply existing. Whether they are valueable to other people is another thing, for one, if the value they created to other companies was comparable, there wouldn't be such extreme inequality in valuations of tech vs rest of the economy
- adam_arthur 5y ago
  Employees tend to get paid on the basis of supply and demand in the labor market. The value you create just puts a ceiling on the equilibrium pay. Simple thought experiment. I have a button that creates a million dollars anytime it's pressed. How much should/do I need to pay for somebody to sit there and press it all day? In fact you can probably pay minimum wage because low skill work and easy to find people. That being said, as an employee you can leverage the unique value you provide into higher pay, assuming you're able to persuade your employer. E.g. imagine you could press the button twice as fast as anybody else... Suddenly you're in a strong position to negotiate for a million dollars per press. But the value you provide has to be unique relative to the labor market. Looking at unique value, and ability to convince others of that unique value, is more relevant than the absolute value you create.

benhurmarcel 5y ago

Developers, just like almost everyone else, are not paid according to the value they create but according to the market. It doesn’t matter if you create $1M/month, if somebody else is willing to do it for $5000 that’s what you’re getting.

sentinel 5y ago
You can get some of the value thru company stocks, but yes, not all of it. Market still decides. This is what you "sacrifice" for a predictable paycheck... think you're worth more? You can always try making it on your own.
6gvONxR4sf7o 5y ago
That’s why it’s great that the comp and benefits are skyrocketing.

adrr 5y ago

I was tech and product leader of a company that just IPOed. When I joined the site was so slow and key features were not functional. The site was built by contractors and had a conversion rate of 2.8%. With of a team of 15, we rebuilt the frontend and reduced page rendering time to under 1 second with a SPA and page optimizations. Conversion rate skyrocketed to 7% accelerating annual revenue from $50m to $400m over a few years. The value each engineer contributed was hundreds of millions in value to the company. I also did the same with another company that had a failing subscription platform built by cheap foreign contractors. Built a talented team and a real platform and that company also successfully exited for 10 figures. You get what you pay for.