No one in tech will admit it, for obvious reasons, but the reality is that startup tech salaries have grown beyond control and sanity. Employee compensation is the biggest expense item for most tech-first companies.
If your engineers can't make you a profit, perhaps said engineers shouldn't be paid that much.
We’re supposed to take the blame for people’s bad ideas too? I have friends who were willing to personally take on that risk who are making 5x my salary at a minimum to own and run their own companies.
Meanwhile, as a senior in a private org, I’m being forced into tech-adjacent roles because there’s no one else competent enough to do the administrative and operational duties required to support the growing volume of work. I hear different, but just as bad, tales from startups. Look, I love what I do. I’d probably work for less if it made sense, but you make it sound like I’m somehow the one holding out for more when the recruiters are the ones who won’t leave me alone, and no one is lining up to make my role or responsibilities any easier, so I’ve gotta admit this is a pretty rich take.
I'm not blaming you or any tech workers. In fact, I encourage it - if VCs are willing to give you more money, then of course you should take it. And ask for more.
I'm just saying that the real reason for the chronic underprofitability of startups that emerged in the last decade is high employee costs. The people in charge will have to rationalize that sooner or later.
As an employee, of course you're not responsible; the decision makers - suits and VCs - are. You should obviously make the most of these good times.
My point is there is no grand surplus of us. Stuff like golden handcuffs and excess capital sloshing around are one thing, but even with a fix for that (a recession) I’m not sure it really addresses the demand at the root of all of this. I suspect we agree on much of the rest. I suppose my initial reaction was due in part to how you framed it, so sorry about that.
All I can say is wow that’s a way different interpretation then I. It’s not the employee compensation that’s the problem here: it’s VCs dumping billions into unprofitable businesses and then trying to figure it out once they’re a nationwide brand/“monopoly.” Uber, AirBnB etc got as big as they are by breaking the law literally in a lot of places (ignoring regulations with a bad faith reasoning that it’s not the same because they’re an app)
At decent places with a profitable business model the workers tend to generate many times their salary expenses.
If your engineers can't make you a profit, perhaps said engineers shouldn't be paid that much.