The Industry has idiotic compensation philosophy

Amazon
lMLQ70

Go to company page Amazon

lMLQ70
Dec 13, 2021 37 Comments

At Amazon new hires paid more than existing hires despite lacking literally the most important distinguishing factor for any software developer:

Domain knowledge.

Literally tribal knowledge is the only reason anyone should be paid well. Software engineering skills themselves are basic shit any bootcamp grad knows. Any idiot can leetcode or gork system design interview. A senior engineer is tested for same coding skills as an intern. By not paying for tenure Amazon and other companies like it deliberately discourage learning actual job skills and damage their own business. It takes a year to onboard a leetcoder to be fully productive in a large company because domain knowledge is critical for success of any business.

I agree with the sentiment people have right now that the only reason to stay at a job past 1 year is if you hate money or shackled by visa. When companies cry about lack of loyalty it rings so hollow because their entire compensation model is designed to discourage and punish loyalty. If companies rewarded loyalty there would be more loyalty but the reality is they donโ€™t. They end up paying more for a worse employee as nobody talented and familiar with the company system will stay and be paid 1/2 of the new guy that knows nothing other than general software skills that everyone knows.

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TOP 37 Comments
  • Google
    1Name4Evaa

    Go to company page Google

    1Name4Evaa
    Itโ€™s not an Amazon problem. Itโ€™s an industry problem.
    Dec 13, 2021 0
  • Its Amazon! Not sure what you expected. They've been running the same model for years
    Dec 13, 2021 1
  • Amazon
    ๐Ÿ˜@@๐Ÿ’ป

    Go to company page Amazon

    ๐Ÿ˜@@๐Ÿ’ป
    You obviously donโ€™t understand sales: it costs 10x more to get a new customer than to keep an existing one.
    Dec 13, 2021 17
    • Amazon
      wItv24

      Go to company page Amazon

      wItv24
      "I would say mid-SDE3 is the time when the company starts seeing enough value in you to retain you if the situation dictates.โ€œ

      Haha, this made me laugh. I'm a TT SDE3 getting ready to start the PE promo process. A few months ago I poked my head out from under a rock, realized I was way under paid, and asked for a comp adjustment. The org ended up doing an adjustment for all top performing SDEs.

      My TC adjustment was about 20%, with the first batch of stock vesting this year. 20% is great, except I figure it actually needed to be 70% to be market competitive. I could leave and boomerang back the next day and make considerably more than my new adjusted TC.

      Clearly they aren't that interested in keeping me.

      adjusted TC 430k
      YOE 17
      Dec 13, 2021
    • Amazon
      ๐Ÿ˜@@๐Ÿ’ป

      Go to company page Amazon

      ๐Ÿ˜@@๐Ÿ’ป
      If you werenโ€™t a TT SDE3, I wonder how much you would have got. 20% is a pretty decent hike.

      Were you expecting to double your salary ๐Ÿ˜‚
      Dec 13, 2021
  • eBay
    fCOw01

    Go to company page eBay

    fCOw01
    Isnโ€™t it an industry wide strategy? I fail to understand how it works for the companies.

    One hypothesis could be that amidst this continuous churn from existing employees and luring new hires with fat paychecks, there might be a decent chunk of employees who find their comfort level with the company, team, compensation, etc. and stick around long enough with lower compensation compared to the industry that it justifies this circus. These rest and vesters are there to manage risks and keep the machine going, and the new hires are just turbo charges that help accelerate it as usually they work harder in the initial 1-2 years. Seems far fetched but thatโ€™s all I could think of.
    Dec 13, 2021 0
  • Uber
    Vegas_OG

    Go to company page Uber

    Vegas_OG
    When stock rises long tenured employees are automatically compensated better. When stock craters itโ€™s the best time to jump ship. If you jump ship you can reset the comp.
    Dec 13, 2021 0