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>It seems to me that there’s a class of programmer that will take an overpaid job at a terrible BigCo, People are bad at understanding risk. When a company pay
by indymike 3y ago
>It seems to me that there’s a class of programmer that will take an overpaid job at a terrible BigCo,
People are bad at understanding risk. When a company pays significantly more for the same job than another, there is always an economic reason:
* The job is undesirable because of how people are treated, and as a result the only way to attract and retain people is to overpay. The extra pay mitigates flight risk when the inevitable bad day or week happens for the hire.
* Management is likely to or has a history of sudden lay offs and firings often indiscriminately. The extra pay mitigates the risk of sudden loss of income to the employee.
* Poor reputation/employment brand requires paying more to get people to avoid the risk of associating with that bad employer brand.
The extra money is being paid not because the employer wants to. It is exactly because they have to in order to hire and retain people that can do the job. The whole "we're better and pay a premium because you are the best developers in the world" is really management self-justifying having to overpay due to risk.
When you look at compensation, ask yourself and the interviewer why is the company over-paying? You'll often save yourself years of misery.
- Aurornis 3y agoThis is true, but it got very temporarily skewed in recent years at some companies that had a lot of cash flow. There really were companies hiring a lot of highly qualified people mostly to have large teams of highly qualified people. The rubber band is snapping back, though. Layoffs are hitting all of these companies and expectations are rising quickly. Inevitably, companies paying a lot of money for people will expect to get their money’s worth out of them.
- indymike 3y ago> The rubber band is snapping back, though. One can argue that the snap-back is exactly they had to offer more money to have large teams of highly qualified people. > expectations are rising quickly I think more reality hitting than expectations hitting.