The Plight of the Graying Tech Worker
sloanreview.mit.edu
sloanreview.mit.edu
"Employers should be more cautious about pursuing strategies that discount the contributions of older workers. In recent years, some companies realized too late — after older employees had departed — that longtime employees possessed critical knowledge and experience. Moreover, whatever cost reductions companies achieve can be ephemeral if young hires move on to other opportunities."
I posted that a day or two ago because of that exact issue. Organizations that don't try to retain knowledge (and we're in a knowledge-based industry!) will lose it over time, and they won't even know what they've lost. Until it's too late.
We had a project where our partner had let go of a bunch of senior engineers. They later (as part of the new project) had to re-design a lot of hardware components and incurred a significant delay because no one knew how the system worked anymore, and the new people were too junior to do a proper job of it anyways.
splitting cost centers and being the manager of the one that gets more income than outcome associated in some spreadsheet makes zero more money but pays lots of bonus and promotions. same for launching tons of features aligned with some strategic goal, even if it completely destroy obvieties like market reputation (eg YouTube kids) or is ridden with bugs that you discounted as "will implement on phase 2. because agile" (don't even get me started on documentation and maintenance runbooks, your waterfall dinosaur!)
now get off my lawn!
Basically, the Industry has made it hard for Americans to seek tech a career path--for the following reasons.
(a) get rid of older workers (b) offshoring (c) use H1-B to suppress wages, even though Google/Facebook will pay $200K to junior developers. The industry is not just Google/Facebook
When it comes to India, where offshore companies operate, you see the same: (a) get rid of expensive workers, as delivery managers to show profit by hiring cheaper warm bodies (b) Tech Industry, just like any other industry, has lots of 'bullshit' jobs. Instead of getting rid of bs jobs, replace them with cheaper warm bodies, and capture the profit. (c) For average Indians, unlike Average American Kids, there are no better alternatives to seeking a job in tech sector. So, there is more competition for 'billable hour' jobs at offshoring companies.
I’ve heard people say this for many, many professions, not just tech. Lawyers, doctors, entrepreneurs, politicians, architects, bankers, etc. maybe once someone spends a career inside an industry it has just lost all the glamor and they only see it as mundane work.
We are not so young, and I think a lot of the ills in our industry can be attributed to characterizing us as young. It isn't that young. We know better about any number of things, and we excuse it as youthful indiscretion.
Most of the software activities we do today were laid out in the late 90's and those involved stealing a bunch of ideas from older discoveries or other industries's discoveries in the 70's and 80's. It's all old. We've just been refining execution and improving tools (painfully slowly for my tastes) for the last 20 years but it's really the same stuff.
There may be plenty of older workers but IMO, the sheer quantity of younger folks, who are told truthfully that tech is a great wage in a bad wage economy, those billion younger people globally and the youth of many successful founders and high performers, those are the main contributors to our perception as young.
All that said, it would be a mistake to rein in U.S. immigration policy. Here’s why.
The largest and most prominent visa category for employment-based immigration to the United States is what’s known as the H-1B visa. Some 90% of H-1B visa recipients are individuals under age 40.7 Typically, economists analyze the effects of immigration through an apples-to-apples comparison of immigrants and nonimmigrants in the same general age and education bracket who are looking for employment. However, peer displacement doesn’t appear in that data set because the salary differences between workers with H-1B visas and domestic employees of similar ages and skills are minimal (in part due to a law requiring companies to pay an H-1B worker the “prevailing wage” for the position).
I don't see how it follows that adjusting the US immigration policy is a "mistake". Isn't the increased supply of workers putting downward price pressure on salaries? Even if H1B requires a prevailing wage, that wage will go down to meet the increased supply of talent that additional developers bring.
Your reasoning sounds reasonable, but it falls for the lump of labor fallacy. Having more smart and talented people makes our society better off, not worse. https://www.nytimes.com/2003/10/07/opinion/lumps-of-labor.ht...
It's pretty hard to imagine how more developers wouldn't lower salaries though. I say this as someone who's done a lot of hiring. It's really hard to find good people and they can command a premium (fair market wage). Being able to hire H1Bs helps hiring managers but I don't think it helps developer salaries at all.
If you're curious to learn more, there's plenty that come up in a simple Google search.
> It's pretty hard to imagine how more developers wouldn't lower salaries though
This is the textbook definition of the lump of labor fallacy.
The answer isn't always somewhere in the middle. If someone tries to convince you that the Earth is flat or that climate change isn't happening, I would hope that you will lend more credence to the experts instead of believing the answer is somewhere in the middle.
H1Bs also distort the market because getting a sponsored visa is a huge deal for a lot of people. Yes they may make slightly less than market but they have the ability to come to the US legally and have all of the paperwork filled by the hiring company (and legal support).
As another commenter mentioned, they're also locked into your company and can't quit without leaving the country. Another win for hiring managers.
None of this is good for local talent though. It's absolutely naive to believe that the supply of labor has no impact on its cost.
So you're saying that you willfully violated federal law by bringing in guest workers for cost reasons alone.
I have some skin in this game. I was rejected at Google for mysterious reasons after passing the all-day and hiring committee. No way to know, but I am indeed pale, male, and stale (and a citizen). If you look at Google's own diversity reports, their fraction of people like me has falling like a stone for several years now.
I’d find it concerning to jump at anti-immigrant rhetoric so quickly.
I wasn't aware that Google was still growing that fast. That makes the reduction in the proportion of non-diverse employees a little more credible. On the other hand, it makes the sibling poster's thought (headcount reduction) a little less credible.
Obviously, they didn't hire me, and in the end, I have no idea why. They probably barely know why themselves.
Seems weird they go through so much trouble hiring and it still comes down to one person giving their ok?
One thing I've learned in my (long) career is that wealthy companies don't really need to care about how much they burn during the hiring process. (For starters, your labor is free to them at this point.) That's just the way it is.
There is no evidence to support this. Google headcount is a scarce resource / bottleneck for a lot of teams, so it's just as likely the headcount was reallocated or reorged during your hiring process. There's also more than one hiring committee for some roles/teams, and you may have been vetoed by the second.
As I said elsewhere, I can only guess at the true story. And it turned out to be a good thing--I found a better job (for me).
I think my original point stands, though. H-1Bs are almost by definition "diverse", and in the current cultural environment that makes a difference. Unless one is living under a rock, it's impossible to miss the advantage that that gives in the hiring market.
The fact that you have reasoned yourself into a position to blame immigrants for failing the hiring process, without evidence, shows prejudice. I think even you subconsciously know this on a certain level because of your using a throwaway.
Years ago, I worked for a rather well known security/dev company in Northern Virginia. We had two arms to the company: the gov contractor side, which required security clearances and the dev side. The dev side hired a few H-1B visas and within a year, the boss, a former H-1B visa holder himself, now a citizen, slowly, but surely purged the Americans from the dev team in favor of people from his country. We all complained, but to no avail. Six months later, the place had two Americans: the good looking admin assistants. That was it. This happens all the time. I have friends in Northern Virginia that I still keep in touch with and they say nothing has changed. The IT payscale has been run down because of this. Same thing is happening with a certain large HW vendor here in Houston. Filled to the brim with H-1B visa holders while native sons and daughters are given the brush off.
Amen. I've been in a few US markets (non CA/NY) over the past 20+ years. Finding a decent number of available/skilled software engineers is always a challenge. If they're skilled (beyond competent), they're employed or doing their own thing.
I've recently taken a 6 month contract, and have been amazed at the quality of the team, but... they're really having trouble finding people - people that wouldn't be a net negative on the team (there's both cultural fit as well as skill fit). And yes, they're hiring junior folks from area bootcamps and training them up. Doing real training - reviews, handholding, explaining, testing - is a real investment, and takes a lot of time.
This has been one of the few teams I've worked in where I've been pleasantly surprised at the level of quality of everyone in the company (10 in the group I'm in, around 65 in the company altogether I think).
I'm watching how they interview/hire/expand, and... it's tough. They could easily bring on more people quickly who would be a net negative, and cause more problems (I've seen that many times - I was the net negative problem at least once!)
I received an offer from an organization I loved: the industry, mission, people I met, everything was perfect. My interviewers halted the interview after 30 minutes, saying that they were going to start the hiring process. The salary became the stickler. The job was mine if I wanted to take a $10-15K decrease in salary. Unfortunately, I had to let it pass by. (In retrospect, I should have taken it. I would have caught up in pay within a few years. Oh well.)
Another organization seemed pretty inline with my goals and personality. The tech was interesting and I mostly aligned with it. The stickler became the vacation time. I have 4 weeks of vacation. They needed me to start again at 2 weeks. (2 weeks, seriously?) Doing so would have screwed up family life as my wife has 5 weeks. Honestly, I can trade salary sooner than I can trade vacation time.
Employers seem to have strayed into Crazy Land with the requirements for "skills". A skill, to me, isn't the knowledge of the Python ecosystem or Java ecosystem for building applications. Python vs. Java is just a knowledge of tool sets: Stanley vs. DeWitt. It's easy to learn one if you know the other. Skill is choosing the right trade-offs in design for the particular organization and industrial sector you're working in. It's knowing when transaction throughput is more important than rock-solid error handling. When extensibility is worth the extra abstractions. When readability trumps everything for a particular organization due to the skill level of the other development teams. Yet, employers have gotten to the point of not just requiring particular tools, but particular versions of them.
So, I'm not convinced the problem is a lack of available software engineers, at least not completely. Much of the problem in hiring is outrageous demands from employers.
From the job description, one can surmise they wanted a developer for the price of a sysadmin. No thanks.
Pay more. Google and Facebook use ridiculous interviews because so many people want to work there. They still hire thousands of people every year. Why? Mostly because they pay mid-level engineers over $200k. Can't afford that? Then we're not talking about "not finding people" anymore, just about not affording them.
From talking to friends and family that live out there, plus a few folks who used to live in the Bay Area, someone earning $120k here would have to earn at least $200k out there to get the same standard of living.
So are people flocking to the DC area to work as software engineers, then? If so, good job. If not, you know what you have to do.
> to get the same standard of living.
That highly, highly depends on what you spend your money on.
People talk about salaries, they know who the top hitters are. Here in London there are many hedge funds you never heard of that have 20 engineers fighting for one spot, because they pay 100k GBP, whereas most startups complaining about lack of people pay 40k.
The 3 of us have:
* Migrated significant portions of the PK team's Angular 1 app to React
* Introduced GraphQL
* Fixed migraine sized security holes (no priv. checks in about 30% of the app)
* Migrated from some system that was SUPPOSED to be docker swarm to kubernetes
* Introduced 4 major feature releases
* Building systems and configuration formats designed for code reuse rather than building brittle shit code
* Actually implemented elastic search in a useful way (the old team installed a shitty unreliable version and used it for a non-essential purpose)
* Migrated the 90% of the JS codebase fraught with patches to typescript.
I get that none of the above is stuff that can be "fully" grok'd from an outsider, but basically I'm saying the team is doing the code right (instead of poor, not up to spec) releasing features waay faster, fewer bugs, in less time with 1/3 the people. The price? It's actually cheaper by about 20% (maybe about 10k less per month).
I'm not a writer, and am definitely poor at story telling, but there's a major problem in my eyes when we say we have to hire people out of the country or are H1B holders first.
There is still tech on the east coast, but it's nothing like the allure or salaries that are offered out in Silicon Valley. Actually, I feel like most of the really talented individuals from the east coast make their way out west unless they have some other non-job things keeping them rooted out here or they happen to land a pretty decent job at a fintech, adtech, etc. company out on the east coast.
But I see a lot of companies thinning their IT staff and the people who are most likely to go tend to be the >40 crowd. Probably because they are more expensive, management doesn't perceive them as being as "up-to-date," and there's less runway in their career. Also, I wouldn't be surprised if some of it is that they want less experienced individuals who will just do what their told and might be less opinionated about things. To me this causes a huge problem with system and application architecture, because you lose all of that expertise of years spent developing and dealing with different situations that I believe can give you a lot of insight into how things should be architected.
IT salaries in Texas suck horribly. I've fought this since leaving the East Coast. Being that my wife is from here and my own parents are long gone, I agreed to let my wife be near her own family.
At 50, I can:
- Admin anything *nix or Windows under the sun. I used to run Sun E10Ks for Network Solutions and more than 100 FreeBSD/Linux servers at one time. - Can write Python, Perl, Ruby, PowerShell, C#, Bash, awk, and am learning Go as I write this. - I can build any web server or database server under the sun, can write programs to do basically whatever a server or sysadmin might need, usually in a matter of hours, not days. - I can perform security assessments, as I used to be a pen tester. I have the experience and the certs (required from a previous employer).
Yet... I struggle to find work in my own damn country! IT for older workers does indeed suck. I now work for a non-profit coding and some other IT work. Not a bad fit, but the money could be a lot better. On the East Coast, I was a six-figure guy. Here? Good luck, even if you're 30 and have a masters in whatever and 10 years of experience.
Am I bitter? A little. American IT workers, unless they are current darlings in a hot area or arena, struggle. I'm actually working on starting my own MSP IT firm with a suitable partner almost my own age whose experience rivals my own. Good MSPs in this area can do very well.
And regarding your H1b comment, I have posted about 10 jobs in my career. In every single one, 95% of applicants were "foreigners" (work visa holders, new college grads) – the sufficient talent pool just isn't there locally, we have to fill it with more immigrants coming to our shores. And we weren't at all looking at cost at that point.
The only class of people I constantly hear are starting to feel the pain of being less in demand in IT, are older people.
have they tried increasing the pay?
There is not much I cannot do given the chance, yet being given the chance is the operative word.
https://www.meetup.com/find/tech/?allMeetups=false&radius=25...
But you can see the vast numbers of people involved, this being a massive city with tons of talented people living here.
Encourage them to list their open positions on the monthly Who's Hiring thread.
Also, foreign students being hired after graduating from US schools are very much less likely to be cheated upon when it comes to pay.
If the world was that easy... let's see, please find the flaw in the following:
- I'm apologetically opposed to universities creating more CS classes. The US has PLENTY of tech workers, ranging from help desk to the nerdiest graph theory scientists. This is nothing more than companies getting cheaper labor. Full stop. I find all the excuses just that.
- I'm apologetically opposed to hiring remote workers. <insert current location> has PLENTY of tech workers, ranging from help desk to the nerdiest graph theory scientists. This is nothing more than companies getting cheaper labor. Full stop. I find all the excuses just that.
- I'm apologetically opposed to replacing local IT services with cloud. The US has PLENTY of tech workers, ranging from help desk to the nerdiest graph theory scientists. This is nothing more than companies getting cheaper labor. Full stop. I find all the excuses just that.
The issue is complex. Yes, there's likely lots of companies for which one of the main short term reasons to hire foreign talent is to reduce employment costs for the local employers they would replace. But companies and economies aren't zero-sum systems. Hiring bright (and cheap) talent means you can do more things cheaper which would allow your company (and economy to grow), which allows hiring more and producing more (or extending provided services).
My opinion is that the main reason IT payscale has suffered was that the services they provided can be easily replaced with cheaper alternatives (immigrant workers, remote workers, cloud services). People that manage to get to the US have already undergone a very strong selection (even if the H1B process through which they were brought was abused), they are some of the best people their country has to offer which means the country that gains them has an advantage over the one that loses them.
From the opening lines of the article:
> In 1975, immigrants accounted for one in 12 inventors in America. Today it’s one in 3.5.
It seems unlikely that if this was purely cheap labour, that this would result in more inventors (assuming they're not using some alternate definition of inventor that I'm unaware of)