You're right but: (1) There is a shortage of top-grade developers / other top-grade IT people - there are only that few and there is a very strong global deman

You're right but: (1) There is a shortage of top-grade developers / other top-grade IT people - there are only that few and there is a very strong global demand for them - those established in this group can almost always choose from multiple offers at a time with salaries in the region of 200k+ or even much more (if they also have proper business skills). Start-ups can't attract those via a salary base - those guys normally do start-ups themselves. Better to go for some mentoring / consultancy sessions with these guys and by that create incentives / improvements with your in-house developers. The rule one of them is as good as up to 20 mediocre developers generally applies. (2) There is a shortage of 25-28 year old senior developers with 10+ years of uninterrupted work experience, having all plus the most exotic skills (each at least 5 years), being in a job with another company and willing to stop there tomorrow and work for 50K or less p.a. gross (that's about 2'300 per month net see cost of living above) - at least double the salary and suddenly people might become interested in job offerings - ask yourself if that marketing guy who's that great in selling himself is really worth 400k p.a. or 200k would also do and you might actually be able to deliver a product after paying your developers an appropriate salary. (3) There is no shortage in mediocre / average developers with high frustration levels and often outdated skills. Some of them might have been outstanding developers before, but got so frustrated by the silly low monies paid to them in an industry juggling with dozens of billions at a time. Treat those fair and spend some time and you might re-surface their outstanding skills. It's a gamble and might also backfire. (4) There is no shortage of lobbyists / politicians / industry guys that trumpet around that there is a shortage in developers - we know at least for the EU and the U.S. this is to lower the wages of developers by bringing in developers from low income countries that are completely dependent on having their visas renewed all the time. Overall with developers you most of the time get what you pay for and how you treat them.