alt Hacker NewsIs compensation really the issue? Like, people earning 160k simply can’t take a dive into the OS source code and make proper fixes, but people earning 250k magically can?
I don't know. I know there are a lot of people who want to work on the OS source code, given the chance, but need some hand holding in the beginning. Companies in general are not willing to give them the chance, because they don't want to hand hold them.
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Compensation can be the issue if the cost of living is creating problems. If you need 150k to just live in an area, 160k is not motivating while 250k gives you the peace of mind to focus on the work, not just on surviving. If you live in Bangladesh, the difference between 160k and 250k is almost meaningless.
Also compensation is a sign of respect and influences motivation. If you position yourself lower in the market, there is no reason to deliver top results for less money, correct? This attracts mediocrity, especially in management, and slowly kills companies. Usually there is no way back, no large company can replace the entire management and once and the mediocre ones will reject new, better ones.
It's not about the amount, but the type of people who stay when they could move to a higher paying job.
And the fact that it's impossible to poach people from companies offering a higher salary than you do. Unless you give them something more, like better conditions, or "mission", or the idea to work on something cool, but I don't think any of those apply to Microsoft.
If you could earn $250k why would you settle for $160? There are reasons people do but still money is a powful signal
I think uncompetitive compensation is the dominant factor in Microsoft’s decline. Up there with stack ranking. They claim that it’s 30% cheaper to live there but then they go and capture most of that 30% for themselves.
It is my opinion that developer ability is on a Pareto distribution, like the 80 20 rule when 80% of the work is done by 20% of the people. The job market is more liquid for those that are extremely productive so it’s pretty easy to for them to get a pay rise of 30% by switching companies. In the worst case you can often come back with a promotion because, like many companies, Microsoft is more likely to promote you when trying to poach you back. Doing a 2 year stint at Amazon was quite common. The other problem is that when your best people leave is that the process is iterative, not only are you getting paid less but you are now working with people who couldn’t easily switch jobs. You start being surrounded by incompetence. Stack ranking, which I hear is still being done unofficially, also means that you put your promotion and career in danger by joining a highly productive team. So it is rather difficult to get highly productive people to work on the same team.
Being paid less, being surrounded by incompetence, and being forced to engage in constant high stakes politicking really sucks.