[HN Gopher] Rethinking Levels, Promotions and Salaries
       ___________________________________________________________________
        
       Rethinking Levels, Promotions and Salaries
        
       Author : vr000m
       Score  : 115 points
       Date   : 2022-02-18 10:58 UTC (12 hours ago)
        
 (HTM) web link (www.daily.co)
 (TXT) w3m dump (www.daily.co)
        
       | twobitshifter wrote:
       | The company I'm with now makes promotions without salary
       | increases. The salary increase comes in the next review cycle
       | when you've proven that you can do the job. It seems very unusual
       | to me, has anyone else seen this?
        
         | LandR wrote:
         | So you get promoted, then have to do that job at a lower salary
         | than the position should get you.
         | 
         | Once you get the raise at the review cycle, is this also back
         | paid for the time you were under paid for the role ?
        
           | taneq wrote:
           | Pretty cunning, I bet whoever thought that one up got a raise
           | (in the next review cycle).
        
           | ant6n wrote:
           | At my place (not software), they ask me to perform the job at
           | the next level, in order to prove that I can do it, before
           | promoting me. They also require that at least 2 years are
           | spent at each level. And during Corona they didn't promote
           | anybody, meaning everybody`s career slid back by up to an
           | extra year, depending on where u were in the cycle.
           | 
           | I would've much preferred if they had promoted ppl and done
           | salary increases later.
        
           | sokoloff wrote:
           | With overlapping bands, it's not necessarily the case that
           | you were being underpaid (in a cosmic fairness sense).
           | 
           | If you are a level N Foo and doing well (as determined by
           | doing some amount of level N+1 work), you might be earning
           | the top of the level N Foo band. If that's above the bottom
           | of the N+1 band, you might be making the same as or more than
           | the most recent N+1 hire.
           | 
           | The day the company decides that your level "rounds" from N
           | to N+1, you might already be being paid the exact correct
           | amount.
           | 
           | Design of pay scales and how they interact with promotion
           | thresholds is complex enough that many fair systems can
           | evolve. Most systems have evolved to slightly underpay the
           | "almost N+1" employees for a period of time, leading to the
           | expectation that promotion come with an immediate salary bump
           | (and often companies do that to make the promotions "feel
           | bigger"), so maybe the problem is promotions under _that_
           | system should come with back pay rather than the situation
           | described here being the one where back pay is owed.
        
         | someelephant wrote:
         | sure. usually more common in places where workers have low self
         | confidence and don't think they could do better. if only they
         | knew what opportunities were out there
        
           | switch007 wrote:
           | Are there many well paid good jobs for people with low self
           | confidence? Ie can low self confidence people actually get
           | those jobs by passing the interviews and succeeding in the
           | role etc?
        
       | thenerdhead wrote:
       | There's a huge loyalty tax being paid here. Although the
       | transparency is nice to have, it's simply not a sustainable
       | model.
       | 
       | People grow at all sorts of rates professionally. Some people can
       | grow from a formal level to another in a year as they get a hang
       | for their responsibilities/job. Some people have extremely hard
       | years due to external factors too. This type of system
       | incentivizes nobody. Why work hard? Why do challenging stuff? Why
       | take on the jobs with most responsibilities? Etc
       | 
       | > In the coming months, we aim to develop written guidance on
       | what career growth looks like for different roles, and we'll
       | start experimenting with rewards and recognition other than
       | salary for particularly noteworthy achievements.
       | 
       | How do you reward or give recognition if your system isn't fully
       | thought through or based on the traditional methods of perceived
       | impact and notable accomplishment? Isn't that exactly what this
       | would be anyway?
       | 
       | Honestly this sounds like a startup who just landed recent
       | funding thinks they are "disrupting" the market with new
       | unconventional TC methods. Not everyone is the same. One person
       | with ten years of experience is another persons four years.
       | 
       | What fairness is to me is understanding where you sit relative to
       | your peers and market. It is checks and balances of your worth
       | and not political players reaping the rewards constantly. It's
       | the whole idea that there's three types of workers: experts,
       | operators, and politicians. The former two actually do the work,
       | the latter just takes the credit more visibly.
        
         | pfortuny wrote:
         | This is topical but your comment reminded me of Deming's New
         | Economics.
         | 
         | Rewards in a system with intrinsic variance are harmful and
         | unjust.
        
           | thenerdhead wrote:
           | Yep, everyone needs to work together so everyone can win.
        
       | bl4ckm0r3 wrote:
       | It really feels like the objective for growth is just to wait,
       | and not based on actual skills. Not sure if this is a good metric
       | tbh, years of experience have a lot to do with type of
       | challenges, and type of challenges have a lot to do with
       | environment and architectures. you can be working 10 years on a
       | small flower shop or building a huge distributed system that can
       | handle crazy traffic or have really complex business logic. The
       | worst thing to me is that it encourages engineers to focus on
       | less risky challenges since the complexity of the work does not
       | contribute to experience.
        
       | KevinEldon wrote:
       | This seems like a reasonable strategy worth if you plan to exit
       | in the next 3 years. It is simple to manage, is designed to be
       | competitive for a point in time, and focuses on performance for
       | growth (up or out).
        
         | sokoloff wrote:
         | I think simple to manage and "people who don't like it won't
         | bother us about promotions" is high here. Whether that makes it
         | worth losing out on corner cases where you'd benefit from a
         | more individualized approach isn't as clear to me, but there's
         | a lot of benefit from elimination of all promotion discussions,
         | referring all of those to "check the calendar; if we haven't
         | fired you by X, you'll be level Y on that day."
        
       | jen20 wrote:
       | From the article:
       | 
       | > Direct experience in our rubric means substantially the same
       | kind of work (coding, design, product management, etc.)
       | 
       | This is a recipe for finding people without "n" years of
       | experience, but instead finding people with one year of
       | experience repeated "n" times. Great if you need a specialist in
       | something, tragic if you need generalists - which most startups
       | do.
        
         | justinlloyd wrote:
         | Having founded and worked at quite a few start-ups, start-ups
         | should aim for one specialist for every half-dozen generalists,
         | preferably even lower than that. It's not a hard and fast rule,
         | and pretty flexible, but if you have a single generalist and
         | lots of specialists in a start-up, you are in trouble.
        
       | smrtinsert wrote:
       | Numbers wise looks good to me. Amazons recent base cap has thrown
       | recruiters sideways and numbers instantly jumped in reach out
       | emails.
       | 
       | Turns out yes, compensation should be increase for hard to find
       | skills that people use to create huge revenue. Shocked.
        
       | FL33TW00D wrote:
       | YOE has little correlation with performance.
        
       | thebackup wrote:
       | It's interesting to see these salary levels. A senior developer
       | (10+ years of experience) here in Sweden is paid less than their
       | entry level salary. The difference in pay between Europe and the
       | US seems huge. I wonder why.
        
         | flibblercorn wrote:
         | Yes that is something that comes up on hackernews a lot, and I
         | personally still struggle to accept it.
         | 
         | According to the Daily level system I should be in their band
         | 5, so $210K, but in England I am paid less than half their
         | entry level salary (at current exchange rates).
         | 
         | Americans don't have IQ scores, or any other metric to suggest
         | being approximately 4-8 times the quality of other developed
         | countries workers, so it's hard to just take it and accept that
         | their compensation isn't due to their ability (on average), and
         | that life isn't fair.
        
           | jandrewrogers wrote:
           | I am an American who has worked in Europe for many years at
           | multiple companies, so I feel at least somewhat qualified to
           | give some insight.
           | 
           | Europeans are just as talented technically as Americans, that
           | has never been the issue. As a broad generalization, European
           | _business culture_ is consistently poor at leveraging that
           | talent to generate value, often treating it like factory
           | work. Because American business culture is so efficient and
           | effective at converting engineering talent into revenue,
           | often on the scale of $1M revenue per engineer, they can
           | easily afford to pay the higher wages while still making a
           | fine profit. This has the side effect of making the market
           | for engineering talent extremely competitive.
           | 
           | In short, European technical talent as a resource is often
           | being wasted by poor business practices, which means there is
           | much less money to go around. There is no reason in principle
           | that European engineers could not earn much more in Europe
           | but changing business culture is slow, though some companies
           | are trying.
        
             | thebackup wrote:
             | Thanks for this comment. A very interesting observation. Do
             | you have any thoughts regarding American companies that are
             | established in Europe, shouldn't they be able to introduce
             | that American culture in their European offices?
        
         | throwaway2037 wrote:
         | I am disappointed this comment does not receive more comments!
         | I feel the same. From far away, it seems like Berlin is
         | bursting with great technical talent, as well as Copenhagen,
         | Stockholm, and Helsinki, yet the salaries are terribly low. (I
         | see you Oslo, but not the same reputation!) Oh hey, please
         | include France. They have such great, underrated technical
         | universities... do amazing comp-sci research... but their
         | _commercial_ software industry is so small!
         | 
         | Some theories:
         | 
         | * High taxes actually means lower _gross_ pay? (I am someone
         | who strongly supports the  "social safety net" -- do not read
         | that question as some kind of weirdo libertarian / low-tax
         | promoter.) As a counterpoint, usually high taxes means higher
         | quality of life.
         | 
         | * Or: Labour mobility is _higher_ in US than many high-tax,
         | strong-labour countries in Europe /Japan/Korea/Taiwan. In
         | short: It's easier to hire and and fire in US. As a result, I
         | see massive income inequality in US, but much less in wealthy
         | European countries -- and Japan/Korean/Taiwan.
         | 
         | Another way to think about it: If software engineers are paid
         | 50% of Silicon Valley in Helsinki, then Starbucks baristas are
         | paid 100% higher in Helsinki. (I have no hard references to
         | offer... but my point: Lower skill jobs pay living wages in
         | Northern Europe/Japan/Korea/Taiwan, but less in US.)
         | 
         | Personal question: Would you prefer to live in Sweden with your
         | current wages, or a place with "up 100% wages for you", but
         | much higher income inequality? When you answer, please assume
         | much higher personal crime rates and visible poverty (or
         | working poor).
         | 
         | I live in a place with simply appalling incoming inequality.
         | The visible poverty and working poor are so depressing. I would
         | easily take a 25% pay cut to build more social housing and help
         | the elderly who collect cardboard to retire immediately and
         | play with their grandchildren all day long!
        
           | jandrewrogers wrote:
           | The income inequality in the US is not that visible in day-
           | to-day life. A large fraction of the income inequality is a
           | side effect of the scale of US geography. The States with the
           | highest and lowest median incomes are separated by 2x income
           | and 1500 kilometers. It is also worth pointing out that even
           | the poorest US State (Mississippi) still has a median income
           | that is the same as Germany, so "poor" is relative.
           | 
           | Different States have different economies due to geographic
           | locale, history, and specialization. Consequently, the US has
           | States that specialize in agriculture, manufacturing,
           | services, technology, natural resources, etc which have very
           | different economics and compensation structures which is
           | reflected in local incomes.
           | 
           | The median income is much higher in Washington than
           | Mississippi, for example, but that doesn't imply anything
           | about the distribution of income within those States. It
           | would be like comparing incomes between the Netherlands and
           | Romania.
        
           | thebackup wrote:
           | It's hard to answer your question without actually
           | experiencing the differences first hand. It's not like we
           | don't have visible poverty in Sweden. Almost every day I see
           | people digging through the public trash bins for bottles and
           | cans that pays a little for recycling and there are beggars
           | in front of the stores and approaching you on the street
           | asking for a money.
           | 
           | There is however a base pension that each senior citizen is
           | entitled to. About 15% of the elderly only gets the minimal
           | amount which in many cases doesn't cover basic expenses, like
           | rent and food, so they need to be on social welfare as well.
           | 
           | But would I accept a 100% salary increase if it meant that
           | social welfare had to be removed and people couldn't afford a
           | place to live and to put food on the table? Of course not.
           | Would I like if people that study hard and get well educated
           | also get well paid jobs? Yes!
        
       | benreesman wrote:
       | This is sort of well-articulated and someone thought about it a
       | lot. The salaries seem fine, as long as there's 1MM in liquid
       | equity to go with the L7 one like Google does.
       | 
       | But it doesn't seem to address the real issue (to which I also
       | don't have a final answer): the jock/nerd thing is still playing
       | out.
       | 
       | If, as I believe is mostly true, A16 is pretty on the money with
       | the software eats the world thing: hackers "should" today and
       | inevitably will be the highest paid people possibly excepting the
       | best salesperson.
       | 
       | If you worked successfully on an optimizing compiler all day,
       | anything that an MBA teaches is borderline boring.
       | 
       | COVID/WFH only turbocharges this: tall white guys have _way_ less
       | edge over Zoom.
       | 
       | It's going to be a painful, but ultimately necessary transition
       | where everyone whose math stopped at calc has their TC stop at
       | 150-200k, and that money/seniority/prestige goes to the _only_
       | truly irreplaceable people, again with the notable exception of
       | the sales guy.
        
         | humanrebar wrote:
         | > COVID/WFH only turbocharges this: tall white guys have way
         | less edge over Zoom.
         | 
         | Being tall probably matters less, sure.
         | 
         | I do find that ability to communicate _in writing_ with
         | English-speaking audiences is _much_ more important than it
         | used to be. Technical communication and persuasion that used to
         | happen in hallways and on whiteboards is now happening in
         | discussion threads, written code reviews, design papers, etc.
         | In some cases, I expect people that some people that used to
         | struggle now benefit from the ability to communicate more
         | deliberately or without a verbal accent.
         | 
         | I don't know that white versus non-white maps to excellent
         | writing skills as such. Partly because I'm never sure what
         | folks mean by "white" in these contexts.
        
           | benreesman wrote:
           | Yeah, I'm personally a bit conflicted that English,
           | especially written English is such a key skill. I once spoke
           | a little French, and enjoyed it immensely, but there's no
           | money in it so it atrophied almost out of existence.
           | 
           | Mandarin seems to be a pretty credible candidate for a "must
           | know" business language, but even there that's climbing up
           | hill at least a little.
        
             | pc86 wrote:
             | Why are you conflicted about this? There has to be a lingua
             | franca for business, the internet, etc. (not necessarily
             | the same language). Historically speaking, it makes sense
             | how English would bubble up as this language. Why should
             | that cause guilt or conflict?
        
         | codechad wrote:
        
         | rr808 wrote:
         | > If you worked successfully on an optimizing compiler all day,
         | anything that an MBA teaches is borderline boring.
         | 
         | Optimizing compiler is a great example of a niche that a few
         | guys should be in that really shouldn't be paid well. The big
         | bucks earned at Google/FB aren't earned because they have
         | better compilers or low level libraries, its because of the
         | business strategies they have.
        
           | JonChesterfield wrote:
           | Compilers are why we can write in C++ instead of assembly.
           | The related fields of interpreters and language runtimes are
           | why we can write in Python.
           | 
           | The optimising part makes languages that are faster to
           | develop in run fast enough that they can actually be used to
           | build useful things.
           | 
           | Bugs introduced in that stack are horrendous to run down,
           | easy to introduce and broad in fallout.
           | 
           | Rather a lot of our modern tech world is built on compilers.
           | It's a great example of where compromising on engineering
           | capability scatters costs and breakage all the way through
           | the system.
        
             | bluGill wrote:
             | While you are not wrong, it isn't the full picture. For
             | most projects we don't need more language/compiler
             | performance. Most web sights are served with a handful of
             | servers, likely shared servers on AWS or something (so that
             | you can get full data center failure redundancy - which is
             | probably overkill). The total cost to run the servers isn't
             | all that much on the bottom line and so you shouldn't pay
             | more for compiler optimization.
             | 
             | Of course google, facebook, and other large companies
             | should be paying for optimization as it will pay off, but
             | the vast majority of systems don't run at that scale. For
             | most optimization is about ensuring response time is
             | acceptable, and that is generally more about optimizing
             | your code not your compiler.
        
             | pc86 wrote:
             | Nobody said they're not important.
        
           | benreesman wrote:
           | I agree that there are better examples than LLVM optimization
           | paths. I was making a lame joke about the Mozilla open source
           | documentary: not your bad it was so obscure.
           | 
           | Everything is math now. Google et al played a this-far
           | successful strategy where they made the "know your shit"
           | engineer TC 1MM so the hackers wouldn't rebel and take the
           | whole cake, like they could.
        
           | draugadrotten wrote:
           | Try building FB or Google without technology, and then you
           | come back and say that the business strategy is all you need.
        
             | rr808 wrote:
             | Sure but that isn't what I said. Big data, cloud services
             | smart tech people definitely needs to be paid as much as
             | the smart business people. Compilers, meh.
        
               | benreesman wrote:
               | You've got a point, which is that kickass compiler people
               | often love PL so much that they'll do it at a deep
               | discount.
               | 
               | I've found this on average to more true of "niche"
               | languages: Julia, Haskell, etc.
               | 
               | C++ compiler people much less often fuck around on their
               | comp.
               | 
               | In my experience.
        
             | benreesman wrote:
             | To the GP, not the parent (who is dead on), can I watch?
        
           | humanrebar wrote:
           | On the other hand, increasing performance by 0.5% at their
           | scale is _big_ savings. Certain kinds of optimizations can
           | save over 10% in runtime performance, easily. That means less
           | compute, less engineering time spent optimizing with other
           | approaches, snappier performance compared to the competition,
           | and so on.
           | 
           | Yeah, pay the "business" person better who decided, wisely,
           | to fund these kinds of projects. But in my experience, it's a
           | lot easier to find a strategic thinker who can understand my
           | previous paragraph than it is to find an engineer who can
           | accomplish it. It's especially hard to find engineers who can
           | see that opportunity, explain it well enough to get funded,
           | and bootstrap the project until it shows enough promise to
           | justify itself.
           | 
           | You're not wrong, though, that network effects and so on are
           | a much bigger determinant in competitive advantage at a large
           | scale. But "business strategies" can and do include ideas
           | like "don't buy extra data centers".
        
             | benreesman wrote:
             | 1% on HHVM is a number I can't say more about than no one
             | would believe it.
        
         | throwaway2037 wrote:
         | I work in finance. I have the seen the same situation play out
         | with salespeople. As risk taking at large investment banks has
         | fallen dramatically since 2008 regulatory reforms, the value of
         | sales people has only risen. The "alpha" sales person seems to
         | have no ceiling. Ideally, this sales person is working in a
         | product area that does not increase balance sheet risk... holy
         | moly... they are worth more than weight in gold. They bring big
         | new accounts that trade like crazy, but balance sheet (and
         | risk) does not balloon.
         | 
         | And now to offer a small criticism of your post: I prefer to
         | say "conventionally attractive" over "tall white guys", because
         | that would be more inclusive. Yes, really, I have seen very
         | successful women who present just shy of pornstars-in-real-life
         | and absolutely clean-up by selling to drooling old (dumb)
         | white, male, portfolio managers. The sooner all of this is
         | replaced by passive investment, the better for all _customers_
         | -- but not big banks(!). After all, as the saying goes:  "Where
         | are the customers yachts?"
        
         | aphexairlines wrote:
         | If you truly believe this, then please reconsider. The tech
         | industry doesn't reward people for technically challenging
         | work. Consider how many large companies were/are built on what
         | you'd consider to be terrible technology choices.
         | 
         | Don't expect an "ultimately necessary transition" because it'll
         | likely go in the opposite direction.
        
           | benreesman wrote:
           | Please reconsider because I'll do myself a disservice? Or
           | please reconsider because I won't take 1% of the marginal
           | revenue I generate and we can't have that kind of thinking
           | going around?
        
             | aphexairlines wrote:
             | Reconsider because you'll do yourself a disservice by
             | expecting the world to work that way. You don't want to be
             | surprised and upset when your employer rewards someone for
             | introducing more bureaucracy instead of some technically
             | challenging work you delivered.
        
         | heurisko wrote:
         | > tall white guys have way less edge over Zoom.
         | 
         | Why do you leave out class analysis? This has far more
         | relevance than arguably either height or race.
         | 
         | White working class boys, at least in the UK, are the
         | demographic least likely to go to university.
         | 
         | The story is likely to be the same in other countries. If
         | you're working class, you're not going to be the intake for an
         | MBA.
        
           | usaar333 wrote:
           | Class analysis isn't that relevant in the workspace. At least
           | in the US, your perceived class changes with economics, so
           | there's not much class differential in meetings.
           | 
           | All said, I don't intuitively buy the idea of Zoom radically
           | changing opportunities. At least as a short engineer, I've
           | sensed zero difference, but then again, I never thought of my
           | height as an actual handicap with regard to my job (studies
           | on initial impressions be damned as the initial impression
           | isn't that relevant once you've built up reputation).
        
           | benreesman wrote:
           | I agree, I was using talk white guy as a shorthand for rich
           | kid with several other attributes.
           | 
           | Being a tall white guy myself I thought it would get me less
           | crucified.
        
             | sockpuppet69 wrote:
             | That's incredibly racist.
        
         | throw1234651234 wrote:
         | You have never applied math above Calc in your life. Just admit
         | it here. It will be good for your soul.
        
           | benreesman wrote:
           | Almost all my math is from MIT OCW on YouTube and a bit of
           | 3blue1brown.
           | 
           | I don't think there's any shame in that.
           | 
           | What's your PhD in?
        
             | throw1234651234 wrote:
             | My Bachelors is in finance and stats. I do hope that makes
             | you feel better.
        
         | cindarin wrote:
         | You may be right about many things you said, but this comes off
         | as though you've got a complex about something.
        
           | benreesman wrote:
           | I'll extend you the benefit of the doubt and assume your
           | intention is to be helpful.
           | 
           | Can you be a little more specific and thus potentially
           | actionable?
        
             | uberduper wrote:
             | I'm just a dude playing a dude disguised as another dude.
             | But I'll give it a shot.
             | 
             | You come off as having an inflated sense of the value you
             | provide while being very bitter that you're not recognized
             | for it. You seem to project the meritocracy playing out in
             | your head on the "inevitable future."
             | 
             | The work you do is no doubt challenging and you seem to
             | find it very rewarding in and of itself. There are
             | presumably few people that choose to do this work, but you
             | need to keep in mind that does not mean there aren't lots
             | of people capable of doing it.
        
             | cindarin wrote:
             | Unfortunately, I have neither the proper information nor
             | interest to dig into that specifically. My best
             | recommendation is to look into why I might have said that,
             | and decide if you care at all what I thought. If so, take
             | actions to change what things that you have a desire to
             | change.
        
               | benreesman wrote:
               | Maybe keep it to yourself if the game plan is to half-ass
               | psychoanalyze someone and then bail when asked a follow
               | up question?
        
               | cindarin wrote:
               | Just because it's obvious to many that you need therapy
               | doesn't mean that any who notice are capable or willing
               | to give it.
        
               | benreesman wrote:
               | If it's not obvious to anyone from the recently deceased
               | kid brother thing that therapy is indicated, I'd be
               | curious how.
               | 
               | I've been getting therapy since way before that happened,
               | most people could probably benefit from a little mental
               | health checkup now and again.
               | 
               | What did I do to get your knickers so twisted that you're
               | banging on a recently-bereaved guy with thus far zero
               | productive suggestions?
        
               | cindarin wrote:
               | I'm sorry for your loss. I'm not trying to hammer on you
               | for that. I hope you feel better soon.
        
           | benreesman wrote:
           | I mean, I'm a little edgy about a fairly recent bereavement,
           | but if that's filtering into my opinions about comp structure
           | then I'm probably pretty bad at my job, and therefore my
           | opinions will trend towards utter irrelevance.
        
         | loudmax wrote:
         | It's not just sales, it's figuring _what_ to sell, and when to
         | pivot. It 's all well to have a solid tech stack but the market
         | changes and companies need to see changes coming and adapt.
         | Having the most optimized compiler isn't going to help if
         | you're trying to sell something nobody wants.
         | 
         | Even tech companies don't just depend on elite programmers plus
         | an exceptional sales guy. You need good design, good customer
         | service, good marketing, and so on. Yes, there's a lot of
         | bullshit in those fields (not that programming is free of it),
         | but there's real value there too when executed correctly.
        
         | [deleted]
        
       | kodah wrote:
       | While I like this promotion system, I think it lacks something
       | like what the military calls "billets". If I'm a principal
       | engineer and I lead two teams of engineers to deliver projects
       | then I should be compensated for my knowledge as a principal
       | engineer, then I should be compensated for the magnitude of
       | responsibility of being a team lead. They are, in fact, two
       | separate things.
        
       | kybernetikos wrote:
       | I like the transparency and fairness. I dislike that it rewards
       | time rather than merit and will likely discourage people from
       | developing expertise away from their core skillset as there could
       | be an argument that their experience in that area isn't relevant,
       | or that their relevant experience in this area is so small.
        
       | rileymat2 wrote:
       | One thing I have always wondered about is if seniority based
       | compensation can promote training without fear of replacement,
       | actually improving the team over the longer term.
        
       | someelephant wrote:
       | promotions are such an absurd idea in this job market
        
         | lscdlscd wrote:
        
       | parkingrift wrote:
       | Strong disagree with basing salary on years of experience. I see
       | almost no correlation between output, skill, and years of
       | experience.
       | 
       | I actually consider this an anti-pattern that actively encourages
       | coasting.
        
         | rowls66 wrote:
         | The OP did not say that they were basing salary on years of
         | experience, but that they were using "years of relevant
         | experience". That is a big difference, and relevant experience
         | is a pretty arbitrary measure.
        
         | lkxijlewlf wrote:
         | They address this in the article by saying it is "relevant"
         | experience. They've given themselves some wiggle room there and
         | I'm assuming they will trust their hiring practices to make
         | sure they don't hire someone with 10 1 year experiences.
        
           | parkingrift wrote:
           | I'm more referring to the culture this would create. If I'm
           | at L3 the only thing I can do to get to L4 is... wait two
           | years. Why would I do anything but the bare minimum to hit
           | that tenure benchmark? More importantly, why would I stick
           | around and wait?
        
         | vehemenz wrote:
         | On the other hand, significant merit raises (over 3%) are
         | mostly a thing of the past. Workers that gradually improve at
         | their job are paid less and less each year.
         | 
         | If you increase pay regularly on a semi-fixed schedule, you at
         | least solve this problem and improve your employee retention.
        
         | ct0 wrote:
         | Experience is relative here. While I agree, there should be an
         | adjustment that captures something like "years of performance",
         | but its harder to quantify.
        
         | sokoloff wrote:
         | I think there's a large correlation in the 0-3 years window. I
         | agree there's almost none in the 12-15 years window.
        
           | cindarin wrote:
           | Amusingly to me, I think the opposite.
        
             | sokoloff wrote:
             | That's fascinating to me. I'd love to chat more deeply
             | about that, but I can't see a way to get at the essence of
             | the difference in an HN thread.
        
               | pc86 wrote:
               | I tend toward your side of things. In your first 0-n
               | years of experience, you're growing extremely quickly
               | (hopefully). You're working with a lot of new tech, new
               | people, if n is greater than 4 or 5, hopefully at least
               | two companies if not three. But by the time you have _n_
               | -teen years of experience, it's much more like you've
               | been repeating the same year of experience over and over
               | again.
               | 
               | Growth, especially if you have a decade of experience
               | (and not one year ten times), is _hard_. I think
               | especially at the upper end it takes dedicated effort.
        
               | clusterhacks wrote:
               | One thing I have noticed is that (prior to the pandemic)
               | new positions in my geographic area were almost always
               | limited to the kind of roles that could be successfully
               | handled by programmers with 3-5 years of experience.
               | There simply weren't many higher-level roles available.
               | 
               | I'm in a standard tech area outside of Silicon Valley -
               | plenty of standard enterprise Java jobs with a slightly
               | smaller number of C# positions. My experience here has
               | been that I seem to be able to make lateral moves into
               | similar jobs that don't particularly offer more technical
               | or career growth.
               | 
               | This relates back to your original comment about not
               | seeing correlation to gains in output and skill versus
               | experience in years 12-15 for working engineers. Most job
               | roles in my area simply don't require more output or
               | skill than a software developer gains in those first 3-5
               | years.
               | 
               | I would guess that for people who do observed a
               | significant correlation in growth in output and skill
               | over those longer years of experience are biased by
               | seeing engineers who were in positions that required
               | growth in output and skill.
               | 
               | Another weird effect (at least in my group - which tends
               | to have long tenured employees - I've been here 12 years)
               | is that I see engineers get stuck in specific
               | responsibilities centered around institutional knowledge.
               | For example, being the devops type for three legacy
               | systems that will exist forever. If a new need comes up,
               | my group seems to prefer hiring a totally new person to
               | own that new project. We have actually lost a couple of
               | employees who (rightly) were frustrated by not being able
               | to get off of legacy support projects. These are the
               | programmers with 20 years of experience but really have
               | that initial 3-5 years plus the same year of experience *
               | 15.
               | 
               | In my case, I had personal reasons for staying in the
               | area and have had to manage my own tech growth. Typically
               | by side study and programming. Some of this has led to
               | new work in the day job but I realize I traded career
               | growth that I would have very much enjoyed for stability.
               | I have also have enjoyed a tremendous amount of
               | flexibility, some autonomy in choosing dev stacks, and
               | collaborating with medical researchers.
        
         | Spooky23 wrote:
         | It's really the opposite. You hire people at a discount and
         | give the 3-7% raises within a band. It's a forward process that
         | incentivizes performance.
         | 
         | I find it funny that people in tech get squirrely over annual
         | raises, but don't have a problem with multi-year vesting
         | schedules with massive payouts.
        
         | deepsun wrote:
         | I've yet to see anything better than years-of-experience (or
         | years-in-company). I've worked in both FAANG and startups
         | plenty, and personally I've seen worse outcomes from "impact-
         | driven" OKRs, nepotism, team-surfing, than from coasting.
         | 
         | Coasting can be fixed by firing or layoffs (which I consider a
         | healthy lifecycle for any company).
         | 
         | "Coasters" at least know that what they do today they might
         | have to support for N years following, so design accordingly.
         | (Although I've also heard horror stories when they make it
         | intentionally hard to understand for job security reasons,
         | fortunately never seen myself).
        
           | robertlagrant wrote:
           | > Coasting can be fixed by firing or layoffs
           | 
           | Based on what? You've just invalidated all the tools one
           | would use to evaluate performance.
        
             | darkerside wrote:
             | Probably based on an engaged managers evaluation of their
             | work output
        
               | robertlagrant wrote:
               | See above - it's strange to discount management
               | techniques for promotions and pay rises, but still use it
               | for firing people.
        
               | darkerside wrote:
               | I think I missed the point where parent said not to use
               | management techniques for promotion and comp. Can you
               | highlight what you are seeing?
        
               | closeparen wrote:
               | We're talking about leveling and compensation based
               | mostly or entirely on years of experience; this implies
               | they are based only a little or not at all on performance
               | reviews.
        
           | tcbawo wrote:
           | A part of me wonders whether certain organizations tolerate
           | "coasters" as a talent reserve of sorts, expected to engage
           | when things get busy or new/interesting challenges emerge.
           | For whatever reason, many businesses fire underperformers,
           | promote overachievers but treat the 80% in the middle very
           | generically. Why work to be a top 20% performer when you are
           | treated the same as the bottom 20% performer? Coasting seems
           | like a natural outcome.
        
             | bluGill wrote:
             | Your best employees should always be working on the least
             | important projects. Thus they will seem like coasters.
             | 
             | By making the best be on unimportant projects you get the
             | following benefits:
             | 
             | Nobody worries about interrupting them if they have a
             | problem - who cares if you make the unimportant project
             | take more time.
             | 
             | Your second best people get to experience leading important
             | projects and thus you grow them into the best people
             | (sometimes the previous best people may need to take a turn
             | leading, other times the third best get promoted). See
             | above about asking questions - the best people can mentor
             | them as needed - again nobody cares if it makes their
             | project late.
             | 
             | Unimportant projects sometimes turn into next years most
             | important project - and your best people have been creating
             | a good base to throw lots of people at.
             | 
             | When sales/marketing discovers an sudden opportunity that
             | needs people now - you have experienced engineers to take
             | it over without killing progress on what was the most
             | important project. (be careful about this one - if they
             | only rarely have such requests it is fine, but if such
             | requests take up too much time you probably should either
             | have a dedicated department of engineers for this - with a
             | real budget and management to ensure the requests are
             | really valuable enough to be worth the time - or you need
             | to tell sales not to make such promises)
        
               | ashtar wrote:
               | This is a great way to lose your best people. Or it's
               | pure /s
        
               | bluGill wrote:
               | Not if handled right. Remember those unimportant projects
               | are often self-assigned as try the latest thing to see if
               | it is useful to us, and they often get high visibility to
               | management as cool things we want to do next.
               | 
               | Of course if this is only treated as unimportant projects
               | they will leave.
        
               | pmmck wrote:
               | Maybe a better term would be "critical projects" instead
               | of "important projects" in that case?
        
           | closeparen wrote:
           | Recently I have been musing about a SlateStarCodex-ish
           | "compensation systems very different from ours."
           | 
           | One is Oxide [0], which has uniform compensation across the
           | board, explicitly with reference to this problem about how
           | performance processes influence work and culture.
           | 
           | Another might be to take LeetCode-style interviews more
           | seriously. We have already concluded that the most important
           | criteria for whether we want to work with someone is their
           | ability to solve algorithmic programming tests under time
           | pressure. Why stop at initial hire? Maybe they got lucky with
           | familiar material. Maybe they crammed and didn't actually
           | internalize it in a stable way. We should probably be giving
           | coding interviews continuously to existing employees.
           | Further, since we have concluded that shades of interview
           | performance are a good way to determine seniority and
           | responsibilities, we could also use these continuous tests in
           | place of the promotion process. Knock it out of the park?
           | Congrats, you're a staff engineer now. Barely squeak by? Back
           | to intern. It sounds facetious but it also addresses the
           | "promo criteria distort architecture" problem and the "YOE
           | isn't ability problem." The civil service is not too
           | different. Officials get to the next level by passing written
           | and oral exams.
           | 
           | Another might be to have stakeholders bid on talent per
           | project. This would match e.g. the creative industry where
           | teams are constantly created and disbanded, and your next gig
           | is based on the department head or director's assessment of
           | the quality of your work or the experience of working with
           | you in a previous project.
           | 
           | [0] https://oxide.computer/blog/compensation-as-a-reflection-
           | of-...
        
         | rr808 wrote:
         | As someone with 20+ yoe this is true, I'm probably as good as a
         | guy with 5 yoe and honestly I want to apply for jobs like that.
         | Honestly tech has changed so much I'm skeptical anyone really
         | has 20 years experience now.
         | 
         | Its hard though when people see my work history they only let
         | me interview for very senior roles which I usually aren't good
         | enough to do.
        
           | sofixa wrote:
           | Do you need to divulge your whole work experience? You can
           | just share the last 5-10 years ( most relevant), and then you
           | wouldn't be put up for jobs you don't feel up to.
        
           | aiisjustanif wrote:
           | I'd like advice on how to tackle this as well.
        
           | darkerside wrote:
           | I'm gonna be real with you here. You're not as good as a 5yoe
           | employee, because people are expected to grow. Nobody hires a
           | junior dev because they want a junior dev for 20 years. They
           | hire a junior because they think the person has potential to
           | grow into a senior dev over time.
           | 
           | Over 20 years, you've not demonstrated that growth, and so it
           | makes more sense for a prospective employer to assume that
           | lack of growth will continue. Compare to a junior dev who can
           | bring the same productivity today, but could rise to the
           | level of principal or staff over the long term.
           | 
           | For the record, I would bet that this picture doesn't match
           | reality. My guess is that you've developed knowledge and
           | skills that would make you much more valuable than you might
           | think. But, you are expected to demonstrate them and use them
           | on the job. Good luck!
        
             | rr808 wrote:
             | I kinda agree, but as its common for people to change jobs
             | every year or 3 I'm not convinced employers really look for
             | people to develop.
        
         | mbg721 wrote:
         | For "individual contributors" that breaks in a way that seems
         | obvious, but managers deal in unmeasurable fuzziness almost by
         | definition (since humans are complicated and they're in the
         | business of humans), and there's significant pressure to become
         | a manager after a few years.
        
         | smallerfish wrote:
         | Coasting can be compensated for by a "we're expecting you to be
         | productive or we'll help you move on with our thanks & good
         | will" policy. Make it easy for managers to fire and replace at
         | market levels.
        
           | parkingrift wrote:
           | What metrics would you use to evaluate performance? I know
           | what I would do, but I don't use tenure to determine pay.
           | 
           | If the company has some metrics they're using to evaluate
           | performance for the purposes of moving on from low
           | performers... why not just use those metrics to move people
           | up/down instead of years of tenure?
        
       | m4l3x wrote:
       | I am not sure if this kind of transparency will be beneficial to
       | the employees or not. Like the article mentioning there is
       | leverage missing for salary negotiation. That mean, that some
       | folks would earn less assuming the model was adapted everywhere.
       | However it may clean up inequalities. In the end people are
       | divers. There are hires with only 2 years delivering better
       | results, than one with 5 years.
        
         | someelephant wrote:
         | you got to appreciate that honesty about leverage. this whole
         | program was designed because they weren't competitive in the
         | market.
        
       | robertlagrant wrote:
       | This is quite interesting, and I'm curious to see how it goes.
       | 
       | I do think the definition of "fairness" is off, though:
       | 
       | > Because using years of relevant experience is transparent and
       | repeatable, both for leveling and promotions, it carries a strong
       | measure of fairness
       | 
       | Or more precisely, there are lots of ways to define "fair". And
       | in this case fair is defined as "more years in post means more
       | money, whatever your job is".
       | 
       | This is not general fairness (perhaps nothing is) but it rewards
       | loyalty. Other types of fairness (which actually their sales
       | teams get) is "create more value, get paid more". I.e. kicking
       | back for 10 years in a role that's fairly straightforward and
       | hard to measure might reward someone as much as working
       | incredibly hard and transforming the business for 10 years. That
       | could well be considered unfair.
       | 
       | I think rather than "fair" it's just "easy to measure", which
       | accounts for the lack of need for promotion recommendations. I've
       | never known them take very long, but yes, a length of tenure
       | calculation will always be quicker.
       | 
       | I would say also that I am curious as to how competitive this can
       | possibly be for attracting talent. Desirable employees who need
       | incentive to move to a company will generally get more money, as
       | otherwise they won't move. Additionally retention might be an
       | issue, as the same principles apply; market forces will mean that
       | other companies that pay according to what an employee will agree
       | to work for will have extra cash to wave at daily.co employees.
       | 
       | Finally, I suppose that in the short term, powered by VC money,
       | this is likely to work, and it's as good a way to spend VC money
       | as any. I don't think we should call it a revolutionary way of
       | working, as having a pit of money to prop up an idea does not
       | make the idea sustainable for other companies. It might remain
       | automatically workable for years to come if the company raises
       | more money without having to survive on its own merits.
        
       | [deleted]
        
       | humanrebar wrote:
       | > Not being able to pay enough for great candidates is a common
       | problem for startups, and we've already had to accept that some
       | very strong potential teammates won't even consider us, given
       | enormous salaries at established tech companies. But by doing the
       | legwork to make sure we're competitive within our cohort, we
       | believe we'll have enough great candidates who want to work at a
       | company of our stage and size.
       | 
       | Recruiters and managers out there: I read "competitive"
       | compensation as somewhere around median compensation. That will
       | be attractive to undercompensated employees and employees in
       | their early careers. It's hard to get good candidates to leave
       | current roles without some sort of pay bump (20%, say?) unless
       | there's some sort of serious dysfunction or mismatch with their
       | current employers.
       | 
       | Daily's plan is to shoot for median-ish compensation and get
       | "enough great candidates" to reach the next phase of growth. I'm
       | glad they're planning on revisiting in a year or so, though it's
       | easy to kid yourself. Especially when you're taking what current
       | employees are willing to tell you as proof positive. For one,
       | selection bias is certainly happening. Also, in my experience,
       | people tell you what you want to hear. Daily employees that are
       | significantly unhappy with compensation are a bad fit for Daily
       | now given the blanket compensation policy. The best way to
       | address that is to _discretely_ look for other offers.
        
         | sockpuppet69 wrote:
        
       | nicoburns wrote:
       | This seems broadly sensible. Only counting experience after
       | schooling ends won't work for everyone though. I was employed
       | full time as a software developer _before_ I went to university.
       | And I had 5 years of non-commercial experience before that while
       | I was still in high school that most people won 't have.
       | Presumably there's some wiggle room for managers to use their
       | judgement on what counts as experience, so it probably works out.
        
         | KevinEldon wrote:
         | You would negotiate how that experience is recognized in the
         | hiring process.
        
       | btucker wrote:
       | I appreciate the intent here of making levels more transparent &
       | evenly applied, but in practice this seems to be tying
       | levels/comp to a demographic attribute people have no control
       | over: their age. This makes me feel uncomfortable.
        
       | mindvirus wrote:
       | On one hand, this is pretty nice. I've always hated the career
       | management aspect of working in the software industry, and so to
       | have it so transparent and approachable makes a ton of sense so
       | you can focus on doing work.
       | 
       | However, my big question is how expectations and performance
       | management scale with level? If someone's not there yet, but hits
       | the years of experience for the next level, are they fired?
       | Likewise, whose responsibility is it for people to get those
       | skills by the time they age into the next promotion?
       | 
       | Quick edit: Also wanted to call out how well written this post
       | is. It lays out the facts, peoples objections, unknowns, and
       | anticipates questions (salespeople remain on variable comp,
       | equity isn't being addressed yet). So kudos to the author for the
       | great writing on this thoughtful piece.
        
       | david_allison wrote:
       | > We start counting years after formal schooling (high school or
       | college). Grad school often counts as indirect experience.
       | 
       | As someone who worked in software development during High School,
       | and took time off before University to work in software, this
       | somewhat frustrates me.
       | 
       | Alyssa Rosenzweig has 0 years of experience under this model.
        
         | Xcelerate wrote:
         | Yeah, I was a bit frustrated with this as well. I was somewhat
         | down-leveled right after finishing my PhD because a lot of
         | employers didn't consider it experience, even though I did high
         | performance computing work with projects that had multiple
         | stakeholders. Honestly, I was more technically savvy then than
         | I am now 4 years into working at a large tech company.
        
           | marcinzm wrote:
           | >Honestly, I was more technically savvy then than I am now 4
           | years into working at a large tech company.
           | 
           | The usual reason I see for down leveling is because being
           | technically savvy is not what companies actually look for.
           | I'm talking most jobs rather than being in an R&D division
           | that is PhD heavy.
           | 
           | * Understanding the modern SDLC in a corporate environment
           | and best practices. Academia often doesn't do things in a way
           | that would be considered good production practices outside of
           | it. Both from a process and a technical (CICD, heavy testing,
           | layered frameworks, etc.) point of view.
           | 
           | * The culture of academia differs from corporate which means
           | that while you gain soft skills they are biased versus what
           | you'd get in a corporate environment. That can have subtle or
           | not so subtle impact on decision making.
        
         | justinlloyd wrote:
         | Me too. I never left school. I shipped my first commercial
         | product in 1978 at the age of 11, launched my first company at
         | age 14, and sold my first company at age 19.
         | 
         | Here I am 44 years later with zero years of experience because
         | I keep adding more years of college and university. I am not
         | exactly the brightest crayon in the box, but I found college
         | "easy" because I had years of professional discipline meeting
         | deadlines.
         | 
         | This idea of counting experience only after you left college is
         | absolute nonsense.
         | 
         | And too add, I never actually graduated from the UK equivalent
         | of high school, which drives HR people nuts, especially when
         | they find out that the CTO of the company they are acquiring is
         | a high school dropout.
        
           | KevinEldon wrote:
           | May you continue to work until you no longer want to, create
           | on your own terms, and drive as many HR people nuts as
           | possible!
        
             | justinlloyd wrote:
             | I have never worked a day in my life. I get paid generous
             | amounts of money to play.
        
         | Mezzie wrote:
         | Yup. I started web development when I was 5. There's a lot of
         | very good, important things that you won't learn working as a
         | kid (conflict resolution, dealing with bad business
         | requests/requirements, etc), but at the same time, it's not
         | like that experience is completely inapplicable either. If
         | nothing else, 29 years of perspective on how web development
         | has evolved and developer discussions means I have a radically
         | different perspective than an 18 year old who decided to start
         | learning to code last year.
        
         | pumpkinprog wrote:
         | Strongly agree. In some countries (for example, most of Eastern
         | Europe), formal CS education is compatible with a full-time
         | developer job during masters and even the last years of
         | bachelor's studies. Therefore, some highly motivated guys can
         | get 2-4 years of production experience upon graduation. Paying
         | them a minimum wage is a great idea to distract talents!
        
       | angarg12 wrote:
       | I worked for a very old fashioned company in Germany that used a
       | similar system to pay employees. After about a year I became the
       | lead of my team. But since some of my colleagues had been in the
       | company about 10 years, they were getting paid more than me.
       | Frustrated, I left for a better (and better paying) job.
       | 
       | I believe these systems produce a "dead sea effect". High
       | performer will leave, being able to get better deals elsewhere.
       | Low performers will stay, since they can' find a better deal
       | elsewhere.
        
         | odiroot wrote:
         | Experienced a very similar situation in Berlin. I assume it may
         | actually be a norm. Loyalty to the company > experience/skills.
        
           | dkarl wrote:
           | That's very interesting, and a contrary norm to many big
           | companies in the U.S. Companies here are happy to pay
           | whatever it takes to fill an empty position, but they often
           | have limits on pay raises that prevent loyal employees from
           | getting fair pay as they gain skills and rise to higher
           | levels of responsibility in the company. Many people enjoy
           | the familiarity and relationships at their job and would
           | rather accept being underpaid than be forced to take a new
           | job every couple of years, so the company loses a few people
           | but gets to keep the rest at below market rate. Loyalty is
           | effectively punished, and job-hopping is how you keep your
           | salary current with the market and your experience.
           | 
           | I know several people who have been affected by this, but the
           | most dramatic was a software engineer at AT&T who had started
           | in an entry-level position in network operations. He had
           | received the maximum allowed raise every year, but he was
           | being paid less than 70% of what other software engineers at
           | the same level were making. The request to make a one-time
           | adjustment to his salary had to be escalated to an executive
           | in another office hundreds of miles away (the VPs in our
           | office did not have enough authority) and took months to
           | process. It was not routine at all. It involved a physical
           | sheet of paper with the executive's signature on it.
        
             | throwaway2037 wrote:
             | Yes, I have seen this many times in my career. Internal
             | transfer has no pay rise and may require equally difficult
             | interviews as external offer. Yet, leave for similar
             | position at another firm is up 20%. And, managers are so
             | "offended" that you are leaving (lack of loyalty). I always
             | think internal transfer is for suckers, as an external
             | transfer almost always means +20%. Bizarre.
        
         | itronitron wrote:
         | Another view is that employees at the old fashioned company you
         | mention don't have to get hired elsewhere in order to receive
         | an annual raise. The company therefore has less turnover, does
         | not hire as often, and is therefore less likely to hire a low
         | performer.
        
         | [deleted]
        
         | woadwarrior01 wrote:
         | Interesting! I didn't know this phenomenon had a name. I've
         | seen the "dead sea effect" at a well known SV bigtech co as
         | well. And this company has biannual performance review rituals.
        
           | oblio wrote:
           | http://brucefwebster.com/2008/04/11/the-wetware-crisis-
           | the-d...
           | 
           | The blog has a bunch of other good article on related topics.
        
         | vikingerik wrote:
         | "Evaporative cooling" is another term for the effect. Hot
         | talent leaves, cold talent stays, diminishing your total
         | talent-temperature.
        
           | ipaddr wrote:
           | Those who leave are not always the best. Those who leave many
           | places quickly are more likely to be difficult themselves and
           | demand more. Those who leave after many years usually turn
           | out to be great.
        
             | rk06 wrote:
             | Those who leave may not always be the best, but those are
             | best will certainly leave. It makes no sense to Not switch
             | jobs if you get higher salary and have capability to get
             | it.
             | 
             | In tech industry where job hopping gives significantly
             | greater raise than yearly increment, those who switch jobs
             | get more exposure and better worldview. While those who
             | stay get 1 year experience 10 times.
             | 
             | PS: Exceptions are always there
        
               | ipaddr wrote:
               | Completely understand where you are coming from. I think
               | a combo of both can be important. Some depth at one org
               | is important to see the results of some of your
               | decisions/actions.
        
         | humanrebar wrote:
         | If you felt you were underpaid, leaving is fair. I don't really
         | understand the requirement that all bosses are paid more than
         | those they supervise, though. I mean, emotionally I can
         | understand feeling that way. But I don't think it's a rule of
         | nature or something.
         | 
         | For instance, coaches often make less than their star players.
         | Directors and producers often make less than star actors.
         | Hospital directors seem to make less than surgeons.
        
           | bluGill wrote:
           | Traditional companies paid manager more, but supply and
           | demand of engineers vs managers means that more and more
           | middle management is making less than engineers.
        
           | blitzar wrote:
           | Telling or _managing_ a player to kick the ball into the back
           | of the net is a lot easier than actually kicking it in the
           | back of the net.
           | 
           | Telling or _managing_ a team of 20 people to put products on
           | shelves is a lot harder than putting products on shelves.
        
             | hdjjhhvvhga wrote:
             | > Telling or managing a team of 20 people to put products
             | on shelves is a lot harder than putting products on
             | shelves.
             | 
             | After 20 years of experience I can tell you it depends on
             | many factors, but first of all on the people you work with.
        
             | baobabKoodaa wrote:
             | I like the analogy, but I don't fully agree with it. If the
             | "product on shelf" is a basic CRUD app, then sure, managing
             | a team of 20 people might be harder than doing the
             | individual tasks related to putting the product on shelf,
             | but oftentimes there are challenging technical aspects
             | related to the product. In some cases those technical
             | challenges might be harder than management of the team.
        
               | aaronblohowiak wrote:
               | Depends on how well isolated the tricksy bits are
        
               | felipellrocha wrote:
               | have you ever been a manager?
        
             | 8note wrote:
             | telling people is easy, actually getting the result that
             | you want in each situation is hard
        
             | Avshalom wrote:
             | >>Telling or managing a team of 20 people to put products
             | on shelves is a lot harder than putting products on
             | shelves.
             | 
             | no it isn't
        
             | JustFinishedBSG wrote:
             | And why would that be? That's a strong claim that's
             | completely unsupported.
             | 
             | Personally I disagree.
        
           | gwbas1c wrote:
           | > lead of my team
           | 
           | A lead isn't a manager or boos.
           | 
           | That being said, a lead is frequently more valuable than the
           | followers.
        
           | nerdponx wrote:
           | I think this makes a lot of sense. Management is not
           | "better", it is simply "different".
           | 
           | And in terms of actual value delivered to the business, I
           | doubt that a low/mid-level manager delivers _significantly
           | more_ than an experienced and productive individual
           | contributor.
           | 
           | Organizations need both good managers and good individual
           | contributors. Clearly managers of technical contributors need
           | enough technical experience to make sound management
           | decisions. But that doesn't seem like a good reason to
           | constantly promote people upwards, nor does it seem like a
           | reason to always pay managers more than ICs by default.
           | 
           | However I think in some cases managers end up subject to
           | extra risk if a project goes bad, so they are probably
           | entitled to some increased "hazard pay" for that. (The
           | risk/responsibility structure might be inverted at some toxic
           | dysfunctional organizations, but that's beside the point.)
        
             | joshuamorton wrote:
             | I agree that inherently management isn't more valuable than
             | IC-ness, but in terms of scope (which is one, though not
             | the only metric for value) it's hard to argue that you have
             | more scope than your manager. They're still responsible for
             | what you're working on. Often more competent ICs are more
             | independent, so this is a bit complicated since a manager
             | of an independent IC can focus more effort elsewhere, but
             | still.
             | 
             | The way I see this usually at places with strong IC tracks
             | and levels is that an L7 IC is payed more than an L6
             | manager, but its uncommon for the L7 IC to report to the L6
             | manager. You _usually_ , though not always report to
             | someone more senior than you, and very rarely report to
             | someone less senior.
             | 
             | Also its far easier for a people manager to increase their
             | scope than for an IC to do the same, so in some sense the
             | advancement path is more clear.
        
             | gloryjulio wrote:
             | All of your points are valid. But here is the catch which
             | many ICs might not realize. There are far more management
             | positions than pure ICs. It's the unfortunate that you be
             | disadvantaged if you stick to strict ICs path. The
             | competition is also fierce. The talented ICs are so far
             | above the rest (the 10x/100x engineers).
             | 
             | It's a simple supply and demand problem. The company needs
             | a lot more of above average managers/hybrids. It's not good
             | for average ICs to stuck to their little world if they want
             | better promotions.
        
               | hellisothers wrote:
               | Just to clarify when you say IC you mean literally an IC
               | as opposed to the leadership path in an IC vertical? Many
               | companies expect hither level ICs to be leaders in one
               | way or another, you don't need to go down the management
               | path.
        
               | gloryjulio wrote:
               | I mean the essence of the problem comes down to people
               | management. If you mean the pure technical role, then yes
               | that's what I am referring to which has far less
               | positions. And usually your competition would be the
               | elites. Because many ICs try to avoid people management.
               | 
               | I am not talking about whether there is a such a path for
               | ICs. I am talking about the numbers problem. The
               | unfortunate truth is that there are far more positions
               | involves people management. Engineering manager is good
               | example because ICs can wield their technical skills. But
               | still, this roles still requires you to do substantial
               | people management.
        
           | 3pt14159 wrote:
           | My boss doesn't know how much I'm paid. I like it that way.
           | He communicates how he feels I'm doing to the people that
           | need to know and it's working out ok.
        
             | nerdponx wrote:
             | This sounds like an unusual arrangement. Who actually
             | determines your pay?
        
               | 988747 wrote:
               | It is often called "matrix structure", in which you have
               | two bosses: HR boss that knows your salary, and day-to-
               | day project boss that does not.
        
             | ldoughty wrote:
             | I find that interesting, and also concerning.. but I
             | suppose it depends on the office culture.
             | 
             | I tried to ignore my peers and direct reports salaries when
             | I first moved into management... I lost an employee after 2
             | years when another place offered him a 80% raise.
             | 
             | At that point, I realized I couldn't count on a 3rd party
             | to properly evaluate an employee's worth, and I started to
             | take an active role in ensuring people are paid as close to
             | market as we could afford (though, as a non-profit, we
             | struggle to compete for technical talent)
        
               | 3pt14159 wrote:
               | Well, I make a lot. I'm sure my boss is aware of that. I
               | don't know a single person that is paid this much in
               | Toronto and doesn't have to manage others. Not even
               | close. So maybe that's why he doesn't need to know.
        
               | dvfjsdhgfv wrote:
               | > I lost an employee after 2 years when another place
               | offered him a 80% raise.
               | 
               | First, I'd say it's quite normal in non-profits.
               | 
               | Second, I believe that in a structure when you don't know
               | the salary of your reports, there is always someone they
               | can discuss it with if they feel they deserve more - and
               | that person would definitely consult your opinion then.
        
           | angarg12 wrote:
           | Is not about bosses and reports, it's about performance. I
           | wasn't anyone's manager. My role as team lead was to
           | organise, coordinate and supervise my colleague's tasks, on
           | top of my IC contributions.
           | 
           | For another example, a guy joined a different team and was
           | killing it, but was getting paid less than another college
           | who was in the company 8 years and was hardly pulling his own
           | weight.
        
           | soco wrote:
           | Here in Switzerland, most of the non-IT people I'm talking
           | with are genuinely surprised that for instance project
           | managers are paid less that developers. For them just hearing
           | the word "manager" = big buck.
        
             | Cthulhu_ wrote:
             | Supply and demand at work I guess; if it's easier to get
             | project managers than developers it becomes obvious which
             | one should be paid more.
        
             | phendrenad2 wrote:
             | Whenever I hear the term "Project Manager", and imagine all
             | of the confusion collectively experienced by anyone who has
             | had to explain that job, I think of Mr Burns from the
             | Simpsons saying "Am I that out of touch? No, it's the KIDS
             | who are wrong".
             | 
             | Let's call it "Project Coordinator" or "Project Advocate"
             | or something.
        
         | [deleted]
        
         | it_does_follow wrote:
         | I had a similar reaction to this post, this is not a _new_ way
         | of leveling, this is how leveling was done at most companies
         | for a long time. State Universities and the Federal Government
         | are still very much this way, with a very similar amount of
         | counting years of direct /indirect experience.
         | 
         | Back when I worked in academia I also had a very similar
         | experience to yours. I wasn't leading a team but, especially
         | earlier in my career, it was incredibly frustrating to be
         | making significantly less than people who were both less
         | skilled and less hard working, but simply had more years of
         | experience. The perpetual theme was "you just haven't earned it
         | yet", but "earning it" was purely a function of putting time
         | in, it didn't matter how great the work you did was.
         | 
         | I left to go to tech and even now that I'm on the older side of
         | things I still prefer the pay structure being more closely
         | aligned with the value of your skills + the amount you're
         | willing to put into the job. I get paid plenty, and have no
         | problem with someone much younger and less experienced then me
         | getting paid more with unique skills and responsibilities I'm
         | less interested in having.
        
       | lmilcin wrote:
       | Salary based on your "experience" as measured by the number of
       | years you survived sitting by the computer.
       | 
       | This is absolutely, fucking dumbest idea I ever heard.
       | 
       | Say you have two engineers that both have 10 years of experience,
       | one is barely scraping by and one is working his ass off and
       | significant contributor to the team.
       | 
       | They earn the same money and, more importantly, they both know
       | it. And the team knows it. And the manager knows it.
       | 
       | Can you guess which one will feel treated unfairly and will start
       | looking for a new job?
       | 
       | Imagine a good employee comes to you and says she is going to
       | leave because she has been offered better salary somewhere else.
       | 
       | You have now only two choices:
       | 
       | 1) break the commitment you made to entire company,
       | 
       | 2) let her go.
       | 
       | You can also decide to promote her, but management is really a
       | different job and you lost your team member anyway.
       | 
       | Over time your business will accumulate people who just barely
       | passed your recruitment process and are just barely competent to
       | avoid being let go.
       | 
       | If you think you will keep the better one just because you say
       | some nice words and give them recognition token, guess again.
       | 
       | Let me explain what this means: it promotes people who sit idly
       | by the computer (because they gain regardless of their
       | involvement) and punishes people who actually give a shit and who
       | try hard being better every day.
       | 
       | It punishes your business HARD. In most businesses, most progress
       | is being done by small minority of employees. And now you are
       | leaving gates open and saying you are not going to even try to
       | keep them doing good job.
        
         | verve_rat wrote:
         | It's the dead sea effect. All the good people evaporate leaving
         | only the salt.
        
         | mnsc wrote:
         | > Ambitious people like achieving goals.
         | 
         | Like coming in, making the biggest impact they can eg. do a
         | large spectacular redesign, leave for 10% pay jump immediately
         | and never sticking around for that maintenance nightmare that
         | were hidden in the details?
         | 
         | Incentives will always be a tradeoff because you can't measure
         | skill.
        
           | lmilcin wrote:
           | > Incentives will always be a tradeoff because you can't
           | measure skill.
           | 
           | Oh, so because it is hard let's just stop trying?
           | 
           | You can't measure skill _accurately_. But you can try to find
           | correlations and you can measure other things that are as
           | much or even more important like... erm... results?
        
       | giantg2 wrote:
       | Wow, just aging into a promotion?
       | 
       | This seems very attractive as a worker. But even I can see this
       | could be problematic and not align to value production.
        
       | yawgmoth wrote:
       | Living in the Midwest and currently working remotely for a NY
       | based company. Remote / coastal salaries are so much higher than
       | typical Midwest engineering salaries that I'll never be able to
       | return to the office again. This feels like a problem worth
       | examining, but what can be done?
        
         | JackMorgan wrote:
         | For possibly the first time in human history we workers are
         | able to get the benefits of geographic arbitrage and still
         | command some of the highest salaries in the world. I really
         | like that and appreciate it. However, if the dual benefits of
         | going into an office and living in the Midwest are important
         | enough for you, that office will cost you a lot in missed
         | opportunity costs. I don't know if that's a problem that can be
         | solved, or just a natural law of constraints.
        
         | _jesseb wrote:
         | Same here, midwest working for a SV company. Nobody in my city
         | is even close to competitive to my salary, and my salary isn't
         | even that amazing for SV.
        
         | cebert wrote:
         | I live in the Detroit area, and also noticed a huge salary
         | discrepancy between local salaries and those for remote
         | positions. The positive is there are many great opportunities
         | for us to increase our income while living in a lower-cost area
         | than Seattle, NYC, SanFran, etc. Midwest based firms need to
         | reconsider their pay bands, or they're going to have problems
         | competing for talent.
        
           | humanrebar wrote:
           | Midwest salaries have been low for a long time, and it has
           | had an effect on the ability to attract and retain top
           | talent. The difference now is that the market for employment
           | for engineers unwilling to relocate to those coastal cities
           | has expanded dramatically. The new entrants are coming in
           | with market-clearing salary offers. I predict we'll see
           | salary expectations in the Midwest increase dramatically.
           | Some Midwest employers will have to adjust their business
           | plans accordingly. For instance, consulting shops may have to
           | increase pricing quite a bit.
        
         | [deleted]
        
       | micromacrofoot wrote:
       | holy shit are people with 5 years experience really making 200k!?
        
       | jawns wrote:
       | My career path was 10 years in journalism, during which I was
       | also programming as part of my responsibilities, and now 11 years
       | in full-time software development.
       | 
       | Under Daily's levels system, I'd have 11 years of "direct"
       | experience and 5 years of "indirect" experience, for a total of
       | 16 years of experience, putting me in their highest band (Level
       | 7) with a salary of $270K.
       | 
       | But as I've told every employer who's hired me since leaving
       | journalism, and particularly as I've transitioned from an IC to a
       | manager, those years of experience in journalism were invaluable.
       | I learned how to ask the right questions; how to handle the
       | stress of always being on deadline; how to be a generalist,
       | quickly learning enough about a subject that you can clearly
       | explain it to others; how to communicate effectively in general;
       | and many other skills that are absolutely relevant today.
       | 
       | Obviously, it wouldn't matter for this banding whether those
       | years are treated as "indirect" or "direct" experience -- I'd be
       | in Level 7 either way -- but I could see it matter for others.
       | 
       | Full disclosure: I applied to Daily last year but they ended up
       | filling the position with an internal candidate.
        
         | sockpuppet69 wrote:
        
         | Mezzie wrote:
         | Yes, the years of experience metric greatly underestimates the
         | value brought by rare synergies.
         | 
         | I'm a decent programmer/developer, but that isn't my primary
         | worth to a company. My primary worth to a company is that I'm a
         | competent developer with additional specializations in both
         | high-level research and media relations/communications.
        
       | gwbas1c wrote:
       | I suspect that, for most locales, they're beating the market.
       | There's a good chance I'd count for 15+ years of experience, and
       | thus they'd pay me much more than my local market normally pays
       | me.
       | 
       | On the other hand, I had a company with a similar salary
       | structure approach me. They were based in a distant country with
       | a much lower cost of living. I pointed out that their salary was
       | about half of what I normally earn.
       | 
       | They didn't "get" it that they were out of their game trying to
       | recruit me.
        
       | KevinEldon wrote:
       | "If everyone can get promoted simply by sticking around, managers
       | have to be active in communicating with people who aren't meeting
       | expectations and helping them improve. Managers also have to be
       | willing to let people go if they don't show progress."
        
       | mepiethree wrote:
       | I've worked with plenty of people with "bad experience". People
       | who don't learn from their mistakes, and consistently repeat the
       | same errors, even things as basic as not testing their code
       | before creating PRs.
       | 
       | I guess this model works if you identify and fire those people
       | early, but in general, this seems like a great way to retain
       | proven career underperformers.
        
       | SloopJon wrote:
       | My company has four IC titles, the description of which includes
       | typical experience, with credit for graduate degrees. When we
       | went from two titles to four, I was assigned the highest title,
       | and joked that it was another way of saying "old".
       | 
       | I would be level 7 under Daily's system, making more than I do
       | now, but then what's my monetary incentive to improve? Younger,
       | less experienced colleagues can literally set a countdown timer
       | to their next promotion/raise.
       | 
       | It feels a bit lazy, to be honest. Some people have commented
       | that it will lead to coasting. The alternative that I anticipate
       | is up or out: you're a level 5 performer at a level 7 salary. You
       | might be happy at a level 5.5 salary, but sorry, you're out.
        
         | Cthulhu_ wrote:
         | It makes me think of Amazon's PIP system, where managers HAVE
         | to get rid of the lower 20% of performance - whichever
         | performance metric that is. When applied to this, it kinda
         | means - assuming it's x years at the same company / using the
         | same system - you don't get paid more for having X years of
         | experience, but surviving X years of performance review
         | firings. It's X years of not being in the worst 20%.
         | 
         | I mean if using that system I'd probably set the bar higher,
         | but thankfully I'm not.
        
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