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example.com0 points · 0 comments · 15 years ago · MrFoof
Last year we were having a discussion at lunch. Coworker was building a new house, and when it came to the numbers it was let loose that it was going to cost about $700K. This didn't seem like much, except to a young guy that joined the previous year and had done nothing but kick ass and take names. The new guy was arguably the most talented guy in the company by a considerable margin, so he thought someone building a $700K home might've been overextending themselves. The person buying the home retorted that it was reasonable and asked the new guy why he wouldn't buy the Porsche Boxster he considered his dream car. The new guy responded that would never be prudent. That didn't seem right, as several of us at the table could've nearly swung a Boxster with just our bonus.
The conversation ended up in numbers. Coworker building the house pulled about $140K base (median for a programmer was probably $125K), and his bonus nearly matched the new guy's salary, which was an insulting $60K -- and got cut out of the bonus and raise in January for not being there a full year, only 11 months.
Turns out he was a doormat in negotiating, though his salary history was cringeworthy. It pained everyone to hear it, considering how nice of a guy he was. In all honestly, $60K was a big step up for him. Worst of all, this wasn't a cheap market (Boston). The guy probably shortchanged himself well over a half-million dollars in the past decade. This was someone who voluntarily put in long hours and went out of his way to teach others, and did everything he could to help other departments like operations and other teams. On top, he was beyond frugal. Supposedly he saved something around 40% of his take home pay, despite living alone in Boston. He grew up in a trailer park.
He spent the next day in non-stop meetings with HR, his manager and the CTO. That Friday he simply handed in his badge without a word, walked out and never came back.
Until 3 months later. As a consultant. At $175/hour.
patio11
ChuckMcM
But regardless, some people define 'winning' as getting more out of you than you get out of them. Sometimes those people get into management positions, and when they do their groups seem to develop really wide pay ranges for the same amount of work. If you're a senior manager and one of your managers is trying to get points because "I can convince him to join for half what the last guy cost." then you need to jump on that problem right away.
Managers have the challenge when they pay someone $X but they aren't doing the same level or quality of work of someone making $X - $Y. As a manager you have three choices: 1) Bring the lower paid person up to an equivalent level 2) Fire the guy making "too much" and replace with someone who is more calibrated to your organization. 3) Engage in a potentially unsuccessful campaign to bring the contribution up of the under performer.
Of the three #1 is the "easy" one (giving people raises is always pretty easy), #2 is the "quick" one (especially if you're in a place where turn over is expected) and #3 is perhaps the biggest gamble (both the opportunity cost of not having the guy perform and the possibility he may never get there). It's one of those things that is different about being a manager vs being an individual contributor.
Things are weirder in pre-IPO + post-IPO worlds where people assume that if they are throwing around a bunch of money its because they got it from stock or something. It can be psychologically difficult on someone who has a lot of money due to an IPO but is doing the same "level" of work as someone who joined later and got post IPO stock. Harder to manage and harder to deal with morale issues if they start 'resting and vesting'.
Google was famous for having a 'personal multiplier' which would adjust your bonus and a 'median salary' for your pay grade but they wouldn't tell you either of those numbers (they made it a policy not too) so it was impossible to back check to see whether or not your bonus reflected your work or was just a beauty contest. When the company won't tell you what the median salary is for your pay grade that should be a red flag. But not sharing individual points across the spectrum I can see the argument for that.
wging
billpaetzke
Is it common to get ~$60k yearly bonus as a programmer? Was this for a finance-industry job? All I've seen (either myself or others) so far is a few hundred dollars to a few thousand.
brooksbp
What's the best way to save yourself once you've realized you're worth nearly double, triple, or quad your current comp pkg?
yason
Early in my career I never asked much and I was quite happy with what I got because I didn't spend that much. All my salaries were big enough compared to the previous salary that I didn't even think much about the fairness of it all. Given also that as a programmer I was still enjoying better than the average national salary and still better than my dad.
But eventually I realized that the only tangible way a company can truly appreciate a good employee is biting the bullet and by paying him a bigger compensation.
Even if he doesn't need it.
In the previous job I stayed for five years. Year by year I started to wonder when will they give me a raise: I still liked the job and I was considered a good programmer. I was already approaching the senior status earlier, but they reworked their career plan and bumped seniority forward into the future. Of course, seniority would have meant some standard increase in the salary. It took me those five years to determine my own value and at the end of it, I left at the brink of my five-year review that turned into an exit interview in promptu.
It wasn't about me physically needing more money: it was about me deserving being paid more money for my skills and experience, about my employer actually acknowledging their appreciation towards my contributions.
These days, I enjoy about the double of the average salary in my country. Quite a considerable increase! I still don't need all that money which has allowed me both to voluntarily work part-time and to also invest part of my earnings monthly. But now I feel like finally receiving each month the appreciation I never got in the previous job. Given my skills and experience, I'm being paid much closer to my market value now and that is what matters, eventhough I still live a small life and could easily live on my old salary.
Job markets are like any other markets: the correct price is not the cost of production plus some profit (or employee's cost of living + some more) but an arbitrary agreement between the smallest amount an employee will accept and the highest amount the employer will pay, an agreement that makes both equally happy.
The next time I'll negotiate a salary, I will have a request ready for an amount that is high enough that I won't be in a hurry to get a raise, but which is hopefully within reasonable limits depending on the job. In the case it's too high for the company, I'm willing to scale back the salary along with my monthly hours, linearly.
But my value per hour remains the same. I know my worth now.
That said, mission effing accomplished for the company: they're well north of a million dollars richer because good little kids don't drop their drawers or talk salary numbers. This topic makes me feel positively Marxist: we're willingly participating in a system designed and perpetuated to exploit us because to do otherwise would be impolite.