5 ms·

You will never be paid what a job is "worth". You will (in aggregate) always be paid what the market demands. Value creation needs to be >> value extraction. I

You will never be paid what a job is "worth". You will (in aggregate) always be paid what the market demands. Value creation needs to be >> value extraction. I don't believe many companies can compete with Google on salary. Paying "market rate" is well... market rate. The discussion would in fact end there, because if you could easily seek employment for more than that elsewhere then it would no longer be the market rate. The alternative is to settle for the same or less elsewhere which brings into perspective that Google is no more wrong than any other employer.

ghaff 5y ago
>I don't believe many companies can compete with Google on salary. Paying "market rate" is well... market rate. In my broader circle, I see a lot more movement towards the likes of Google than away from--and most of the latter are senior people who don't need the money (or really didn't click with the job). Most companies that can will do creative things to snag or hold onto the people they want but I expect that most people who can land a Bay Area-salaried Google etc. position will just take that if money is the deal-breaker. Because most companies won't match in general.
falcolas 5y ago
> You will never be paid what a job is "worth". Unless you're in sales, a major league sport, or a C-level position. Then you're paid according to the "value" you bring to your team.
- CaveTech 5y ago
  You're not. I hold a C level position, I create more value than I capture. These positions are not loss leaders, the organization (in aggregate) ends up ahead.
- seanmcdirmid 5y ago
  Even in sales and C-level positions and in major league sports, you are still getting paid based on demand (and supply) for your talent. They are going to pay as little as possible for the value you provide, but at the top talent has a much better negotiating position.
  - BeetleB 5y ago
    Sales people often have high commissions/bonuses. They're not paid like regular employees. When a company does treat them that way, it shows (all the good sales folks don't work for them).
    - seanmcdirmid 5y ago
      The commissions are still set based on how much the company wants to keep vs how much they want to compensate and motivate their sales people. They aren’t paid like regular employees, yes, if they don’t sell they don’t get paid. That is a bit more risk than we have to take on, and many sales people don’t make it for very long (as always, the ones we are aware of are filtered via survivor bias).
      - BeetleB 5y ago
        True, but the pressure on the company to pay high commissions is much more than for a typical employee. And unlike an employee's work, their total compensation is much more correlated with performance. I can work like crazy and not have an idea on whether I'll get a bonus, and if I do, how much. And I still have to work regular hours. Someone in sales has a much clearer idea how much extra he can make and how to get there. And it's a common occurrence that a top performer simply takes it easy for a few weeks (e.g. not come in to the office or work only 3 hours per day) as they made so much money after a big win. Their hours are a lot more flexible. Of course, most are not top performers and do end up working long hours.
        seanmcdirmid 5y ago
        As a software engineer working for a FAANG, I’m not really envious if sales people anymore. Perhaps our situation is temporary, but I believe programmers, at least, have reached a parity in sales compensations without the risks.

ghaff 5y ago

>I don't believe many companies can compete with Google on salary. Paying "market rate" is well... market rate. In my broader circle, I see a lot more movement towards the likes of Google than away from--and most of the latter are senior people who don't need the money (or really didn't click with the job). Most companies that can will do creative things to snag or hold onto the people they want but I expect that most people who can land a Bay Area-salaried Google etc. position will just take that if money is the deal-breaker. Because most companies won't match in general.

falcolas 5y ago

> You will never be paid what a job is "worth". Unless you're in sales, a major league sport, or a C-level position. Then you're paid according to the "value" you bring to your team.

CaveTech 5y ago
You're not. I hold a C level position, I create more value than I capture. These positions are not loss leaders, the organization (in aggregate) ends up ahead.
seanmcdirmid 5y ago
Even in sales and C-level positions and in major league sports, you are still getting paid based on demand (and supply) for your talent. They are going to pay as little as possible for the value you provide, but at the top talent has a much better negotiating position.
- BeetleB 5y ago
  Sales people often have high commissions/bonuses. They're not paid like regular employees. When a company does treat them that way, it shows (all the good sales folks don't work for them).
  - seanmcdirmid 5y ago
    The commissions are still set based on how much the company wants to keep vs how much they want to compensate and motivate their sales people. They aren’t paid like regular employees, yes, if they don’t sell they don’t get paid. That is a bit more risk than we have to take on, and many sales people don’t make it for very long (as always, the ones we are aware of are filtered via survivor bias).
    - BeetleB 5y ago
      True, but the pressure on the company to pay high commissions is much more than for a typical employee. And unlike an employee's work, their total compensation is much more correlated with performance. I can work like crazy and not have an idea on whether I'll get a bonus, and if I do, how much. And I still have to work regular hours. Someone in sales has a much clearer idea how much extra he can make and how to get there. And it's a common occurrence that a top performer simply takes it easy for a few weeks (e.g. not come in to the office or work only 3 hours per day) as they made so much money after a big win. Their hours are a lot more flexible. Of course, most are not top performers and do end up working long hours.
      - seanmcdirmid 5y ago
        As a software engineer working for a FAANG, I’m not really envious if sales people anymore. Perhaps our situation is temporary, but I believe programmers, at least, have reached a parity in sales compensations without the risks.