Remote work will break the US monopoly on global talent
devonzuegel.com
devonzuegel.com
- no country pay like the US. Worked for silicon valley companies remotely, and made twice the money I made in France, while being 3 times cheaper than local competition.
- no country have the volume of hi-level coding gig job offers the US has.
- few countries even have has many interesting projects. If you want to code in Haskell or Lisp in Europe, good luck.
- the USA don't care about your diploma, only what you can do. You will be limited in opportunities and earnings depending of your background in many countries.
- talent attract talent. It's better to work with companies already full of good devs, the colleagues are coolers, the projects are more interesting and the infra will be better. Inertia is in favor of the USA.
So no, it will break no monopoly. If anything, it will make it easier to work FOR the US.
Edit: downvoters, care to explain a little? Why would they waste their time on me if they weren't interested in me working there?
As best as I can tell the only time it has hurt me is when I tried to emigrate out of the US and was unable to as some countries require a degree to get a work visa, even with a job offer.
And no one explicitly ever asked, but they did ask for a rather detailed work/education history, and I never claimed to have one.
I really suspect that they SAY they don't care if you have a degree or not, but at the end of the day I think they do.
If your lack of degree was a dealbreaker, they wouldn't go with the interview process to completion. It makes zero sense to waste time and resources on a candidate that you already determined you aren't going to hire. My team had to interview 50+ people just to fill a couple of positions, and every interview is taking away from precious time that could have been spent working on the product. Wasting our time interviewing someone we won't hire due to a lack of degree makes no sense.
Not only it would be wasting our own time, we would also be wasting the candidate's time, and all of it for exactly zero gain. There is no grand conspiracy where FAANG companies interview candidates with no degrees all the way till the end, and then drop them due to the lack of degree, it is just illogical all around.
Basically, if you got an interview, and especially if you got to the onsite rounds, nothing that is on your resume can disqualify you at this point.
The thing is, I was asked to provide certain details after my interview process, like an extremely detailed chronology of my education and work history, explain every single gap greater than 3 weeks, etc. etc.
The fact that this all happened after I rocked my interviews (which was the feedback provided via the recruiter) tells me that yes, it's possible that they wasted everyone's time to interview me and potentially disqualified me on some kind of technicality.
It was an odd experience altogether. I was even invited to spend an afternoon with someone on the team after getting the verbal Ok. Either way, it was interesting experience, but pretty unpleasant through and through. In hindsight, I'm quite glad I didn't get the job, but in principal I didn't like the way the process went.
Yes, you are, it sounds like Google, and I had the same experience with them, except I had a degree.
> I rocked my interviews (which was the feedback provided via the recruiter)
A lot of times, recruiters aren't at liberty to provide truthful and direct feedback. Also, you might have done well overall, but one of the interviewers tanked you. It all depends. You might have gotten a good signal (but not strong on all of them, just "good enough") from all your interviews except one, and on that one you got a strongly negative one. Hiring committee looks at this combination of signals and decides "no". This is really common.
Hiring a bad candidate and having to fire them later is extremely expensive, so the interview process prioritizes decreasing false positives rather than false negatives. Which means that unless they are absolutely certain you are a good fit, it is a pass. But I can pretty much guarantee you that if you got to onsites and then later got declined by the hiring committee, it wasn't your lack of degree that got you passed over.
And when our team was recruiting experienced candidates (5-10 years or more), at no point we ever cared about their degree or lack thereof (aside from some specialized research positions that typically require graduate degrees). For entry level though, yeah, if you are in your early 20s without much industry experience, it is gonna be much tougher to get hired without a degree.
Also, i don't know when your friend tried to get re-hired and at which level. The whole "we don't care as much about degrees anymore" is a fairly recent thing, I would say 5 or so years. And of course, if your friend only worked at MSFT for a few years, then left to do school, and then tried to come back, they would be probably still shooting for a close-to-entry level position, not a senior. And entry-level without a degree or something else to compensate for it is going to be really tough. Normally it is compensated by either years of experience or something else (side projects, major open-source contribs, etc.), hence why I never saw someone without a degree at entry-level, but plenty who are senior engineers.
So, yes, you can get hired at FAANG & friends without a CS degree.
But: I would suggest to always read that as "absolutely go for it, even if you didn't get a degree", not "skip getting a degree, it doesn't make a difference".
There would be no way to charge what I make if I were an employee. In fact, most companies would not give me the level of responsability I had as a junior freelance, even today.
And yet, it's better in IT than in any other field. You already make more money, and the requirements are relaxed compared to other sectors.
I some countries, like the UK (well, brexited now), it can be better. But you'll also most likely be working for a bank.
I think the hard part as a freelancer is to start. Once people know about you, there is such a high demand for devs that people will come to you. They have problems to solve, and it's not that easy to find somebody you know will solve them.
Now, it's better though, it's not considered a low status job anymore :)
Even my parents, who are neither doctors or lawyers themselves, considered engineering/CS to be a grunt and pretty much blue-collar work (not that there is anything wrong with blue collar work at all, but I was not going to pick that fight with my parents at the time when I lived with them). And even now, once they know how much software devs can actually get paid in the US, the only thing that's changed is that they stopped pestering me about it. But I definitely took a note of how when the conversations with their friends or other relatives go, my parents still try to avoid mentioning what I studied or what I do as my career (aside from namedropping the company names, because apparently big US corps carry some weight with those people). All while also letting me know every single time how awesome their friends' son or daughter is, because they are a doctor or a lawyer. /rantover
I cannot understate how good it feels to me in the US in this aspect, because it feels like most people here on average absolutely don't care which path you took and don't even question it. Sure, some are still judgemental, and some of them still assign weight to the outcomes you got. But I would rather get some weight assigned to the outcomes I got, as opposed to the same weight being assigned to some stupid bs like "oh, your degree isn't of the right class of respect, so no matter what you do, you ain't going to be as much of a respected person as a doctor/lawyer". Just the entire concept of "respectable" degrees makes me feel a certain kind of way that I absolutely hate. If you want to talk about degrees based on any measurable metric, you are welcome to. But "respectability" of a degree is not measurable, and is the most snotty bs that is way too commonplace outside of the US. I had some friends from SK (so not even the same continent as EU), and they echoed fairly similar sentiments in regards to the cultural sentiment about engineers/tech workers in their country.
And the thing is, I cannot even really blame my parents, because it isn't just them, it is pretty much what the majority there believes.
Let’s not build up cultural myths from a passing conversation. Of course there are PhDs in Europe who code and code very well. There are also ones who don’t. Was the PhD even in a Computer Science related field?
And not to offend you, but many people have better things to do than talk about programing languages. Maybe the visiting PhD had more interesting topics on their mind?
Yes and no. Learning the intricacies of your particular domain as well as high performance computing is massive task. I used to work as that "someone else", and on the whole I think it was a good way to split the work. They gave me slow python/matlab code that solved a hard problem in a very clever way, and I made run in reasonable amount of time using a reasonable amount of memory etc. I will never know as much about thermodynamics as the scientist, and they don't have the time to learn the best way to make software run really fast.
yes! :D
We should for real start teaching basics of query languages in high school. Just enough to demystify the subject for when "tech-averse" folks pragmatically need it for their profession
I've suffered emotionally observing people from non-tech areas toiling with what, to us, are rocks and sticks. Folks that would undoubtedly benefit majorly from learning a tool do not do it because they just have never had any exposure to the principles behind them
We can't fix people's interest in tech being low - we can introduce them to simple helpful concepts early on so they are more accepting of proper tools for complex jobs
Did this sound too exclusivist or tech-centric arrogant? I didn't mean to. I'm really interested in why some things like version control aren't used across all industries and I suspect it has to do with fear of command lines and inspection tools
The local tech labor supply will go to work for US corporations, which pay better than most everyone else. That will cement the US hegemony globally in tech (the sole major exception being domestic China, and to a far lesser extent domestic Russia). The US tech juggernaut will buy up the world's talent without having to plant expensive offices everywhere; that will occupy the talent pool and reduce competition to US tech.
Why wouldn't other nations react accordingly? What power does the US have to stop this?
1) Other nations increasingly have a large supply of high-skill talent.
2) Other nations will use capital and subsidies to launch their own tech firms employing their own workers. There are startup accelerators spinning up all over Europe and Asia to capture, retain, and reward domestic talent. They see how the game is played now.
3) Other nations will create more regulations that limit how much US tech companies can participate in their economy and monopolize their citizens as consumers. This is already happening with major international antitrust rulings hitting Google, Apple, and Facebook. This is the nail in the coffin. They will foster and protect their own industry at the expense of the US.
There are many more international tech companies participating at the global stage these days. Atlasssian, JetBrains, Spotify, SoftBank, TSM, ASML, miHoYo... Not to mention all of the Chinese tech companies popping up. Epic Games is 50% owned by Tencent.
This trend will continue. The US only has 300M people, and it's not growing with the same significant postwar tailwinds it once had. It can't keep the wealth and talent monopoly forever. Just look at how much the middle and lower classes are hurting as a symptom of this global rebalancing.
You can also look to other industries. Automotive, aerospace, etc. The US isn't peerless anymore.
Not saying this is good or bad, but it's definitely happening.
Your third point doesn't make any sense to me as no country will restrict their own citizens from working for a foreign company...earning massively higher salaries than local jobs (more money earned locally is more money spent locally... all metrics that nations care about will go up). Monopolizing your citizen's attention != monopolizing their talent.
Every company you just mentioned added up doesn't even equal or come close to Google's market capitalization (Atlassian, 150B, Spotify, 55B, TSM, 550B, ASML 350B, JetBrains, private, but some say 7B?, Epic Games, 30B) and of note, TSM and ASML draw much of their valuation from hardware than software.
This might surprise you, but some countries manage to achieve something like that. In Austria for example, if you go freelance (self employed) you'll actually end up paying more tax than being a FTE (which has already one of this highest taxes in the EU) while losing all the benefits of being a FTE like PTO, overtime and such.
So yeah, turns out high taxes are a pretty strong deterrent.
This is the case everywhere in Europe. I don't know if it's a literal policy meant to discourage this or it's just that freelancers are easy political targets since they tend to be disorganized/disunited.
It definitely isn't. In most of Eastern Europe, freelancers pay peanuts in taxes in order to attract foreign investment. Which is why there tech sectors boomed so much in the last couple of decades to the point devs in Poland or Romania can take home more than their counterparts from richer countries like Austria. Granted, they also get no benefits, but when you take home several times the average national pay, you can actually afford to buy a decent house and maybe fund your own early retirement if you're good at investments.
>I don't know if it's a literal policy meant to discourage this or it's just that freelancers are easy political targets since they tend to be disorganized/disunited.
I think it's a bit of both. Trying to force your local talent who's education was taxpayer funded to only work for and support local business, instead of helping build another nation's champions (remote brain drain). A short sighted move in my opinion which just suppress wages and produces no local champions thanks to shit wages and a lack of opportunities.
I don't know about Poland.
In the US both employees and employers pay social security contributions. Going freelance here means you must pay both of these, double the amount an employee would see withheld from their paycheck. But it's not an extra tax. The government is still getting the same amount of money in total.
As a freelancer you need to set your rates appropriately to account for the payroll tax, PTO, etc. that would be paid if you were an FTE.
But relatively recently the government changed their minds and said that if more than 50% of your income comes from a single employer then you're not a freelancer, and these laws don't apply.
So the option is to take a 60%+ tax on your income or find a job with a local company which then works for a foreign company. In latter case, they are nothing more than a middleman taking a smaller (but not much smaller) cut than the government while providing you with next to nothing.
So it doesn't make much time to figure out who lobbied for reversal of those freelancer laws.
Even outside of Europe places like Toronto don't operate with the right investment mindset to actually create wealth: https://alexdanco.com/2021/01/11/why-the-canadian-tech-scene...
American optimism and ambition, really valuing engineers, generous equity and culture are a big part of this. Companies outside of America have been losing talent because they've been fucking this up, I expect things to get worse for them as geography is even less of an issue for working for American companies than it already is.
Devon is basically making this point, but the title is confusing. It's not the US companies that will lose the monopoly on talent, it's the US geography. The US companies will increase their monopoly.
It's something that I observed as well.
> American optimism and ambition, really valuing engineers, generous equity and culture are a big part of this. Companies outside of America have been losing talent because they've been fucking this up, I expect things to get worse for them as geography is even less of an issue for working for American companies than it already is.
Don't forget that companies who may have been hesitant to sponsor a visa for an unknown dev might be a lot more willing after having him work for a year or two remotely. And this remote employment also opens the possibility of different visas (L1 comes to mind).
I actually think we might see a larger drain to the US in the medium term. And I'm all in for that, if Europe wants to pay to educate engineers then waste their talent not valuing them, send them here!
This is the main reason that pushed me to go to Switzerland to work for an American company. I feel this is the sweet spot when considering worker rights, salary/purchasing power, interesting work without too much bureaucracy, quality of life, and work-life balance.
My more cynical take is management and management-adjacent roles are easier to climb to and more abundant, pay better than the equivalent technical-only title and since managers largely decide what is going on, they'll obviously provide job security for themselves in whatever obscene way possible. At the same time culture views a manager as something noteworthy and of a higher rank already, which loops back and reinforces itself through payment, work and lifestyle, which then loops back to the way culture views it. The same can't be set for most developers who aren't at least partially dabbling into self-employment, entrepreneurship or management themselves, which then further reinforces the manager > developer mindset.
FAANG have already spent years building up these capacities in Europe. Sales in particular is incredibly local (as one might expect).
For the pay, eventually it settles down as more and more companies try to see what they can get away with. US companies won’t be paying boatloads of money eternally (they were already resorting to offshoring to skimp) and local companies will have to align to get people to work for them.
It really doesn't. You end up with a whole segment of engineers that effectively become invisible to the local tech scene, because they are way above the local rates. Local companies are, basically, a waste of time for them.
Also, keep in mind that working for a foreign subsidiary opens up many additional visa to someone who wants to relocate to the US main office. So a "first remote" approach might actually accelerate brain drain in the long run.
But it doesn't mean these engineers live in their remote bubble. There will be a halo effect of showing the way to local talent, we've seen when subcontracting html integration to a remote shop. Once the contract and legal framing was established, it was easier for us to ask their junior member to do administration tasks or other basic data entry tasks.
The other path is for these higher level engineers to move directly to high level positions in local firm. You'll see a junior engineer by EU standards move to a CTO like position in a local company or startup.
All in all, I think the local part still tremendously benefits from having highly competent remote workers.
They kinda do. Mentoring, for instance, will happen with employees of the US corp. You'll effectively have the best devs in the foreign country mentoring early career Americans at HQ.
> The other path is for these higher level engineers to move directly to high level positions in local firm. You'll see a junior engineer by EU standards move to a CTO like position in a local company or startup.
Does that actually happens? I mean, I can see that a senior engineer at FAANG matches the level of some local companies CTO, but will these local businesses really give out such a role to an engineer barely in his 30's? That's of course if he hasn't transferred to HQ yet...
If remote salaries will be significantly higher than local ones many governments will be tempted to raise/introduce taxes on foreign income (and in authoritarian ones it is easy to implement). Since cross-border payments in most countries are closely monitored it would be not hard to enforce. Which in turn would make local jobs more attractive in comparison.
That's a double edged sword. Because your top performers are now seeing the local government trying to fleece them and it just makes coming to the US even more attractive.
It would also be a red flag for anyone in the country, to be fair. Instead of looking at what's wrong with the countries' tech ecosystem and fixing it to help local companies innovate and compete, they just rent-seek successful companies.
The holdovers jump through all kind of hoops, many involving crypto.
It does make providing to local companies much less desirable.
COVID really did changed everything, and proved working from home not only works well, but more importantly to CFOs, made it significantly cheaper by literally outsourcing real estate costs to employees.
The past few months have been interesting. I've been contacted by so many recruiters the past year not from my state or even country that it's wild, and all for remote jobs. Compare that to the past few years where the conversation ends abruptly as soon as I mentioned that i would not be relocating.
Slightly on topic speaking of commercial real estate, I was sad to hear York Butter Factory is in liquidation :(
That's a total bullshit, unfortunately. Everything else is correct.
Basically a sort of on-the-job-training-degree, just that you get paid for it :-)
Things are very different now than they were 20, or even 10 years ago. It used to be that people coming into this field did it out of passion and interest in the work, and accordingly the talent pool was fairly small and someone with a bit of knowledge and aptitude could get a shot.
Now it's just seen as a lucrative career like Law or Business, and so CS has become the number one major at many US universities these days. We are facing an absolute glut of new grads. And if you're trying to compete for an entry level job without a degree now, you're pretty much out of luck.
https://www.reuters.com/technology/facebook-plans-hire-10000...
My daughter is looking to go into software engineering and I was explaining to her that most of the high paying jobs are in the US and there's a big brain drain out of Europe (we're Brits). Not to dissuade her, but that she might consider that as an option on graduation. I was speculating why FAANG don't hire more developers in Europe to take advantage of the pay difference, and then the above story broke literally the next day.
Who would move just for the privilege of living in literally sea side resort.
I also think that some developers from Nordic countries will consider, and the rest of Europeans who would like the opportunity working at FAANG.
First, these are just not big cities with a lot of people. They don’t have large labor pools or many companies to choose from like London or Paris or Dublin to start with. It immediately limits the number of locals you can hire without relocation.
Second, many of these locations are not as friendly to immigrants. Either they don’t have existing communities or the visa programs they offer are not friendly to non-EU citizens. It is hard to get Indians to move to Bulgaria when they don’t speak the language, there are few other Indians there, and the govt does not provide visa programs that make it easy. Similarly, even though other EU nationals can work in places like Sofia without a visa, few are interested in this. They either want to go to big markets with all the amenities like Berlin, Paris, Dublin, or they want to stay in their home country. Romanians are not very interested in moving to Lithuania. The best candidates we’d find were Lithuanians who had been working in the US or London who wanted to move back to Lithuania for family reasons but work for a Silicon Valley type company.
This problem was amplified for older workers who had kids or wanted to start a family. They want to know it’s a place they can stay for a while.
Third, often times the govt were just not friendly to tech companies. In Portugal, there were many issues around employees working overtime (at all not just for extra pay), having to give one year notice of layoffs. The business viewed the labor laws as a hassle to do business there. They might put up with it in a market where they can hire a lot, but with the above problems, it made the locations even less attractive.
Also because London is the only European city which everyone in the US has definitely heard of ;)
Is it a question of language skills, technical skills, or both?
Makes sense. There is a reason that its high COL
Are you at Facebook? Because local talent doesn't matter as much. It's not like the Dublin or London office relies on local talent. I've had tons of colleagues from Romania move there. And when they get there, there are a ton of folks from India, Ukraine, China, Estonia, whatever, a huge chunk of them freshly arrived from their home countries.
If Facebook would go to Spain and Italy, even in the more expensive cities, salaries would be so huge that they would completely dwarf the higher cost of living compared to the rest of the country. But places like Madrid or Lisbon would still be cheaper than for example, London. And with definitely better weather :-)
My guess is that the language barrier is the killer. Everybody in IT outside of maybe China and Japan learns English so London is kind of easy mode.
Nevertheless, you can get 100k just out of uni in an ML role! Especially if it's following a PhD.
>Nevertheless, you can get 100k just out of uni in an ML role! Especially if it's following a PhD.
I wouldn't call that "very high paying" at all compared to the US ones. $100k is way less than what a non-ML undergrad dev gets at an entry level FAANG position in the US. And yes, even for remote positions (within the US specifically and, to a degree, Canada; felt the need to clarify, because FAANG positions outside of the US/Canada pay much less, despite still being usually noticeably higher than local alternatives), so no need to go the "but living in Bay Area is extremely expensive".
But for an ML role that requires a PhD? $100k in the US for that would be laughable. Not trying to stir anything up or argue, but I do recommend doing a bit more research on the topic, especially if you are trying to help a future college student make a decision on a degree/career path. A good starting point would be checking levels.fyi, which seems to be by far the most accurate resource on tech salaries from my experience, despite sometimes showing a few random datapoints that are a bit off (mostly due to some people not entering their stock grants or annual bonuses properly and not accounting properly for vesting)
Your point still stands though.
Facebook already have greater than 10k contractors in Europe for content moderation work.
The announcement is specifically about engineering roles (including DS, PM, UX etc).
Office wise though, that would make sense to open up in UK, Spain, Germany, etc.
Also current situation does not inspire confidence in somebody who may be identified as white male.
I'm considered a spender among my peers, and even I am amazed when I discuss with american friends, watching the money they throw away.
Most of them have huge food budget: they never cook and eat outside all the time. They have so many recurring payments for so many services. They spend tons money to refund a student load for a degree they never finished, or a mortage on a car or credit cards fees. Cigarets, alcohol, weed, then various kinds of meds.
Some of them have several generations of console, one PC, and changed their phone every 2 years for the last decade.
When I visited the USA with my father (he worked for an airline), we always ended the trip with flipping through garbages in nice neighbourhoods. Once we found a printer. Another time we found a tennis racket.
So when they tell me they are having a hard time with money, it's not easy to be compassionate.
I know there are people working 3 jobs, living paycheck to paycheck and eating junk food to survive. But they are not coders in the valley.
Even if it still costs less than SF, your paycheck now looks adequate. Covid era raised prices everywhere.
Then staying there and working remotely becomes family friendly, and moving becomes super selfish. Most people assume moving to get a good job, which will lead exactly to the consequences above.
It still happens but you need to go further East, like Romania, for example.
But Romania is far more disorganized compared to Czechia, so there are downsides.
https://en.wikipedia.org/wiki/List_of_ethnic_groups_in_the_U...
You can see this effect clearly from your own source, where Australian Americans and South African Americans both have higher median incomes than almost all Asian American households, as well as white Americans. Same thing goes for Pakistani, Iranian, Lebonese and Austrian Americans compared to other groups in the US.
No one made that point. And yes, it's true, if you look at certain much smaller demographic groups you can find groups that are somewhat more economically advantaged than white men.
I've lived in Atlanta, Phoenix and SF/MV/Santa Clara, and no, none of those come close to the quality of life for the money. For reference I live in a 2300ft^2 house in the country, and it was great for raising a family, but now I'd rather rejoin civilization. So I'm aware of the tradeoffs.
Seriously, if you think housing is expensive relative to incomes in Bay Area, or NYC, it will seem like a bargain compared to London or Paris.
As I mentioned, I've lived in Mountain View and Santa Clara. Sunnyvale is in the middle. I'm a cyclist and loved to climb up the various two lane grades and over the top to the coast and back. I visited MV and San Jose last spring. And SF. It was much more interesting in the '90s. Now the South Bay is just another dead US suburb.
I wouldn't live there again for $500k/year.
We haven't even discussed why most families move to the suburbs: children. We have done the two commute raising a child in the Bay Area. We evacuated when the school logistics became visible, and in hindsight, rightly so.
In Nice, I would pay 1100€/m for the same thing, and that's also considered an expensive city.
In my current country side town, I pay the ridiculously low price of 300€/m for a 3 bedrooms flat. Now that's the lower end of the spectrum, because it's a very poor deep country side village.
But yeah, some devs start their career at 2400€ a month as a salary :)
https://www.longtermtrends.net/home-price-median-annual-inco...
If I understood it correctly, you physically live in Bay Area while working remotely for a company located in Eastern Europe, and you are earning Bay Area rates? This seems like the complete inverse of the situation I usually hear of (working for a Bay Area company remotely in a cheaper area and earning Bay Area rates).
Out of pure curiosity, do you mind sharing the name of that Eastern European company? Totally understandable if you aren't willing to do so, but I have a feeling that there is probably literally 1 or 2 companies tops that would be willing to do that, so it isn't really an option for almost anyone. The first two that popped into my mind were Yandex and, to a much lesser degree, VK.
So that's kind of the point - those remote workers for US companies will do their daily spending, house construction, etc and pay their taxes outside of USA, boosting the economy and creating the demand for non-developer jobs there instead of USA.
In these cases the top jobs will still tend to stay in the home country. So the most successful of these companies will be able to hire more top level folks and most of these will be in the home country.
It is standard economics. If the value of American citizenship is eroded, and I would argue that it is across a number of fronts, then America as a nation loses value. Pretty simple. Econ 101.
Sidebar: I don't want to work with any Engineer for whom the programming language plays any role in their choice of career.
I want to work with engineers that want to build solutions for customer problems, solving complicated technical challenges using the best tool for the job. Sometimes that tool is Haskell or Lisp, or Erlang. Sometimes it isn't.
I also want to work with engineers that recognize that they can do more as part of a team than lone-wolfing everything themselves. That also means that sometimes the best tool for the TEAM is not the best tool for them individually.
Not a problem for foreign companies that can and do pay "like the US", because they compete globally.
>- no country have the volume of hi-level coding gig job offers the US has.
Well, in that aspect, the US wont compete with each country one by one, but by the volume of hi-level coding gig job offers in all of them combined.
>- few countries even have has many interesting projects. If you want to code in Haskell or Lisp in Europe, good luck.
StandardChartered is a British bank - and one of the main Haskell employers (it's not like they are many). There are lots of others. Eiffel (France), Smalltalk is used by several European companies in different places, and I see a comparable number of companies using Common Lisp in Europe as in the US ehre: https://common-lisp.net/lisp-companies
And, in any case, even in FAANG 99% of programmers don't do Haskell or Lisp, so the point is moot.
>- talent attract talent. It's better to work with companies already full of good devs, the colleagues are coolers, the projects are more interesting and the infra will be better. Inertia is in favor of the USA.
Yeah, inertia the US has :-)
On the other hand, momentum is in favor of Asia and Africa...
Do they really though? How many non-US companies are paying $150k+ to mid level front end developers? I don't think that exists anywhere else.
150k is also out of date for mid-level FAANG total comp today. I hear it's more like 600k and goes up from there.
FAANG is a whole other ballgame. $150k is intern level pay there. I was just talking average total comp for B and C tier large companies outside the Bay. The kind of role an average self taught dev with 2-3 years experience could expect to land in any major US city.
https://money.usnews.com/careers/best-jobs/computer-programm...
Scala, Haskell, Ocaml, Clojure, Coq, Idris are much more significant in the EU than in the US. Many Ph.D. contribute to language and ecosystem, and you can easily find exciting projects with them, not only crypto.
Even GHC was developed mainly by the EU and British people. The Swiss academy created Scala. Coq and Ocaml are big in French academy circles.
It's also a problem for me because I'm working from Eastern Europe (I can pay only 5% tax on all income up to 250k euro on remote). I primarily work with US companies, salaries are outstanding, but usually interesting FP-ish things are done in the EU, where wages are lower.
And I am on remote, so there is no profit for me to earn less with better social and government benefits like people in West Europe.
- There are plenty of smaller tech hubs with way higher quality of life like Zurich, Berlin
- Or others that are incredible affordable like Warsow, Bukarest, ..
- The USD is not looking healthy from CHFs perspective. I would have to expect to earn less every month.
- Getting paid from the US makes banking and taxes way more complicated. You can not even open a bank account without signing 3 times that your money does not come from the US.
- US companies have different values/ideas about social security/pension and co. Also work hours or more than 40 hour weeks
- I don't fully understand the diploma thing. You may think it is more important than it actually is in central Europe. It's common (because education is free or cheap), but by far not the only way to get in the Industrie.
My point is when you already live in modern place with high quality of living standards it's unlikely you'd find a US job, remote or not, tempting.
I'd be very happy to be proven wrong and for the respective position to not be a beyond-senior-contributor thing (so maybe 0.0001% of jobs out there).
Like, a friend recently got a FAANG offer for senior IC, which netted out at about 150k total compensation, which is far off from 200k.
You'd be looking at Staff (or years of stock appreciation) to hit 200k TC, which is a lot lower than one would expect in the US.
It does appear that $200k is achievable in Dublin, Approximately $150k seems a lot more likely though.
Clearly, I need to give up on DS and become a software engineer. I suppose I could get a leetcode subscription and start back reading Knuth again ;)
I was speaking specifically of senior engineers at Google, Facebook, and Amazon (which are the only FAANGs to have meaningful presence in Ireland), because that was the context I was replying to.
US companies in Europe pay that much, but there are only a handful of jobs (let's say 0.01% of jobs), and outside of US companies you can't even find that. Outside of US companies you need to be, as I called it "beyond-senior-level-individual-contributor", i.e. a god in your field to reach that. So you have to add 2 more zeroes after the dot, 0.0001%. They're both even rarer and also <<super>> hard to get.
You can find these jobs in London. And there are plenty of examples of this in Amsterdam as well [1].
But the point is that in Europe you don't need to make as much as you'd have to make in the US to have the same or a higher quality of life.
If maximising your total compensation is your goal, then yeah you'll have to work in the US or for a US based company.
Yes, but we have generally better public transport in EU so it's easier to live farther away.
And to have a similar quality of life to the average US FAANG employee you will still need north of 120k € per year in my experience.
Plus in your list half the positions are exactly what I was talking about, higher than senior IC. You need to be incredibly skilled (top 0.5-1%) or incredibly lucky to get them. Though I appreciate that the other half is there :-)
Timezones, language factors, cultural factors, retention and exclusivity challenges plus basic logistics stuff like payroll and taxes all matter a lot. None of that's insurmountable but it takes a level of effort that can be very high.
And I say this as someone who quite likes working remotely.
I just don't see it disrupting the world in the extreme way it is sometimes portrayed.
My employer (mid-sized international software company) recently posted a revised work/travel/location policy. Basically, for anything over a month, we are only allowed to work in a locale where the company has an existing presence, and we have to notify the company in advance so they can plan payroll accordingly. I believe (thought not 100% sure) this is because they effectively transfer us to the local entity for the duration of the travel.
It seems like something that an intermediary could help with, and a few do exist, although they are pricey.
Simplification of regulations into a standard framework (without weakening them) would be a huge win here but I can't imagine that happening anytime soon, even in the EU, as labour laws are so sensitive.
It is closer to 30% overhead, but much of that is based in providing benefits to the employee outside the country of origin. The cost is also relative to the country.
I suggest that it would be a WeWork/Regus situation. Nothing about WeWork was revolutionary - but if someone had enough buzz and funding they might be able to take over and expand the market.
Labour laws generally come into play when professions are poorly compensated or mistreated - pampered tech contractors being paid far above local market rate don't really fall into that category.
In the UK the Government has clamped down on freelancing by saying, simplified grossly, if you look and act like an employee, but claim to be an independent contractor using alternative and often more favourable remuneration strategies, then you'll be firmly disagreed with and instead you'll be considered an employee.
The Govt considers this "disguised employment", not the freelancer.
More on this: https://www.gov.uk/guidance/understanding-off-payroll-workin...
But it's the key point parent is making - you need to know about this stuff for bringing in freelance talent in/from the UK. Not least because as a hirer/commissioning party the UK Govt will come after you if you have got it wrong!
Well in the corporate world offshoring really is everywhere. Even Goldman Sach's, #2 office for engineers in is Bangalore.
The actual core business, secret sauce, top level management stays in the home country (in this case the US), and the remote offices get the grunt work and crumbs.
Remember companies like EDS? During the 80's and 90's all the development and support for the 'big' companies in the USA was done by companies like EDS. They employed hundreds of thousands of people. Then in 2000's they started going to India etc.
In any case, did EDS succeed? I had forgotten about them until your mention. Just because they offshored to India, it doesn't mean it worked and their business is flourishing.
I think the model has changed, at any rate. Companies like EDS are mostly obsolete. Sure, professional/technical services companies are still around in the form of IBM and their ilk, but they're not even remotely the dominant way of doing things.
How so?
They were bought and sold a few times and sort of exist as DXC right now. They claim to have 134,000 employees, I get approached by their recruiters a couple times a year.
Colleagues in India feel like colleagues not "replacements" these days.
The US doesn't really have a monopoly on global talent, we just pay the most for it wherever and whenever we can get a hold of it. We import talent at huge rates and we act as an education and training center for the world.
One thing I've seen with remote work is that wages have gone up. All of a sudden, developers that were making $60k in some sleepy town are getting hired by huge software companies for sometimes two to three times as much and they are still making less than their in-office counterparts.
For example, in London, as someone with no experience, you'll probably have to go with a graduate scheme--mostly at tech companies and banks. But when you apply, you'll be barraged first by cognitive aptitude tests, followed by situational judgement tests, then a LeetCode/HackerRank test. Deutsche Bank additionally requires you to pre-record answers to interview questions that they pose in an e-mail. Perhaps afterwards you'll be invited to an on-site interview where you can repeat the process.
All of this machinery to filter out candidates doesn't scream out that they are that short on candidates.
Getting my first job in tech was the hardest - but since it has been smooth sailing as I have a track record of experience & war stories to tell.
First job out of uni and can handle a lowerish salary? Find the startup scene in your area and network like crazy.
That's because most of the people that graduate with a CS degree can't code and, what is worse, can't be taught how to code.
As an employer, it is also very expensive and time consuming to hire someone like that, since you're not just wasting money by paying someone who's non-productive, but you're also wasting the productive time of the team (or whoever is in charge of mentoring you) in a potentially fruitless attempt to teach you how to code.
Unless you have work experience, there's no quick way to tell if you'll be able to learn or not. Faced with that problem, a lot of big companies just throw all the cognitive tests they can find at you and hope for the best.
The result is that we aren't maintaining core groups of subject matter experts anymore. Instead the idea is that teams are interchangeable and software should be well documented and replaceable. Developers are expected to be able to pick up immediately and need to have the skills ahead of time. So there is no mentoring, skills development, core subject matter experts, or entry level positions for college graduates in most companies.
This means that things will suck for anyone with less that two years experience. Also it means that employees will have zero loyalty and company IT culture will rot like an old tomato in the sun. However, once you get that initial experience you will be getting offers to apply constantly from your company's competitors looking for someone.
If you want to find a company to look for, the big banks and such will be a hard pull for entry level work. Working as a contractor or at a smaller company with poor capitalization may be easier to get into. Unfortunately degrees don't mean much anymore unless your senior project was something relevant to industry like Kubernetes, AWS, Kafka, etc...
Once you have that first job and about 1 year of experience, things become much easier.
Also, practice interviews, find books, courses, etc.
* People STILL want to migrate to the US and it will remain one of the top choices. People move her for economic/job opportunities, sure, but that's not all.
* Outsourcing (or hiring remote teams in remote offices), as well as setting up remote and international offices has been going on for .... I can't even remember. 100 years? This was already happening and will keep happening.
* Timezones are a physical problem and cannot be fixed. Sorry. Remote work or not, people don't want to work at 1 AM so they can talk to another team half-way around the world at 7 AM. This was true yesterday and it will remain true today.
* Culture issues will remain. True yesterday. True today.
* Language issues will remain. True yesterday. True today.
* US will continue to remain a country people WANT to live in and stay in once they are here. Remote work will certainly allow some people to move abroad and continue working because that's something they really want. But the data definitely doesn't suggest some sea change here. True yesterday. Remains largely true today.
I think the US has nothing to fear from remote work -- they will outsource even more work and again benefit from the arbitrage. But it is true that it will diminish their talent advantage, and that will be good for them.
I keep seeing people say that the economy is not a zero sum game - but all I see is people getting poorer and offered worse jobs with fewer benefits.
I think however there is ONE potential out: Building HOMES. It seems that the people that DO have a really high paying job is willing to pay 1M for a 2 bedroom house. I think the next major thing is for people to pick up the hammer and build houses for rich people wanting their second and third home. Next change for the laws? Make it easier to get a Gen-Con license...?
If I were to take a shot in the dark it would be less than 1% of the jobs. I can see painting robots but even that would be a miserable robot that would look good in a youtube video but when you ask the crew that's forced to use it, they will tell you clearing the paint clogs is taking more time than rolling/spraying the wall themselves.
Heh, the bit about caring... Let's go:
* strike busters (sometimes extremely violent, there are documented case of actual cannons or bombers)
* rampant child labor
* super high crime rates
I think perception of the past is often affected by https://en.wikipedia.org/wiki/Fading_affect_bias :
> The fading affect bias, more commonly known as FAB, is a psychological phenomenon in which memories associated with negative emotions tend to be forgotten more quickly than those associated with positive emotions.
i.e. we forget the bad parts faster.
The same may happen wrt. access to financial services (e.g. Facebook employees around the world may eventually be indistinguishable from US citizens for the purpose of opening bank accounts or owning property in the US, etc.), for example. Maybe a particularly bad example because taxation is very complicated and this messes with that too directly
Perhaps a better example would relate to access to State-sponsored programs like healthcare. Imagine future in which Amazon, Facebook, Google lobby for allowing a knowledge worker to travel from their country of residence to their country of work to utilize a governmental program that was previously reserved to citizens only. (Add a bit about actual citizens losing that right if they are 'unproductive' and you got yourself a setting for a sci-fi story)
It's late and maybe I'm not making much sense, I don't know. I'm aware there are a million possible reasons why this should not come to pass but at least on law & regulation I think that if the incentives of the companies align with 'extending rights of remote workers towards citizenship-like rights', then law and legislation will be changed via lobbying, etc. without much ordinary citizens can do about it
I offer no judgment of value - simply pointing out something that we may see happen over the next years or decade
Sort of a mobility-focused benefits package. Unlikely, incredibly unfeasible but interesting to ponder.
Also - yes, precisely! The internet abounds with posts about how Apple's market cap is larger than most countries GDP already. If the trend of tech-giants growth keeps pace, we may have multi-trillion dollar companies whose revenue will rival nations' GDPs.
At that point, the 'guild' of workers around the world will may have enough political power to be backed by the company, which will have enough leverage to influence law everywhere.
We had an offshore subsidiary in India. The problems with it were LEGION.
1. The key issue was overall quality. I'm sure it's possible to get good code out of an offshore team, but we couldn't. Their contributions to our code base comprise the lion's share of the technical debt we're carrying.
2. Time. Working asynchronously is really, really hard, even without any other issues floating around. I wouldn't want to work async with the best devs I've ever known, let alone a "regular" dev.
3. Culture. Local cultural differences can KILL developmental communication. If the local customs discourage saying "no, I don't understand" or "no, we can't do it that way" or whatever, then you end up with bad code and a worse product even if you get anything at all out of it. (I have my biases here, but I'm trying to frame this as a mismatch of expectations and not, as some might, an example one way being Good and the other Bad.)
I might be willing to work with proven, reliable, highly communicative resources at a 6 hour offset, but a new hire on the other side of the planet working local hours? No way.
That depends on the salary, how much were you offering?
Was your company paying Google level salaries or the TCS level salaries?
I guess you'll just have to take my word for it. Or not, Internet Stranger.
Companies will pick from a larger pool of people. People will pick from a larger pool of companies.
Even worse when you talk international. An Amazon USA based employee is forbidden from working remotely in India, because of all the legal issues it would cause for Amazon USA.
It's a very complicated issue, in which each individual government is fighting to get a slice of the tax pie. Reference article: https://therealdeal.com/2021/05/07/ny-tax-officials-crack-do...
See: Tariffs, Mercantilism, Imports.
Anecdotal, but plenty of contacts who would have never accepted an on-site position in UAE, Hong Kong, Germany (for reasons ranging from personal, political, or just sheer affordability), and are now contracting as individuals at companies based in such regions, for substantially above the Bay Area average for their experience.
Already had a talk with friends about it, before the pandemic remote gig work was hard where we live, but now that working from home is more accepted. It should be a lot more attractive for urban companies to hire remote workers in the rural parts.
However… when you mix in the politics of Diversity and Inclusion that is sweeping our industry right now, it will be more enticing and possible to hire someone who isn’t an evil white person.
Companies, for lack of a better term, have "fucked around and found out" by not going (relatively) local and depending on offshoring (even nearshoring) to their ultimate detriment. This isn't to say that companies that are remote (as in geographically) don't now have a bigger pool but large and high functioning tech companies are not going to all of a sudden abandon home-grown talent for offshoring.
This isn't outsourcing, this is hiring to work for the company's own teams based in the US.
> offshoring
This isn't offshoring in traditional terms, the projects stay in the US and are managed from there, with team members from all over the place.
This has never happened in US history. The upward trend has stopped. Employment outside the US has grown much faster. Other countries have caught up. But wages in large sectors haven't gone down in any sector I'm aware of. And MAGMA all have over 100,000 software engineer employees and make huge profits on them. Google makes over a million dollars per software engineer. There's a lot of room for wages to go up.
Maybe. But I've been hearing that since the early 90's.
Bear in mind this pays <5% tax and you can maintain a whole family, pay for a house, food etc for 2k a month.
This arbitrage has always been there and its become way easier to manage after the remote shift.
Its not even close. And if we are talking about raising money - just lol. Canadian VCs treat their investment like they are buying into a 200 year old insurance company for a check in the 50k range.
Turning around a company / industry culture away from a 1950s factory model is very hard, and its even hard for companies who allegedly want to compete against SV firms.
Only way to do really well in Canada is to work for a FAANG with HQ here, as they tend to bring a bit of their comp structure with them. Or consult. But even at the FAANG I work for there's been people leaving to go remote for same or more pay.
From my experience with the startup world in Toronto (over 10 years ago, so), the whole Canadian VC industry & startup world was nepotistic. All went to private school together, and role playing a part.
I would love for the Caribbean to become a thing but it seems less likely given the issues with governmental stability and severe weather.
Just observing the companies I've worked for, I've also seen it's much easier to get hired for an on-prem job and transition to remote after proving your capabilities than to get hired fully remote from the start (minus the past 18 months). I wouldn't be entirely surprised if the result is many current U.S. residents moving to those destinations, moreso than locals being hired remotely.
What you've described will become common. Start a job in the flesh, get trained up and productive, then you're free to move. It will probably be harder for you to get promoted if you're working remotely, but you'll also be providing less value because you won't be there to help bring the new hires up to speed.
Companies that learn to onboard new employees remotely from the outset, efficiently and effectively, will have a monstrous competitive advantage in the coming years.
Specialization means spending even more time to learn skills at the expense of earning money. So it costs money to specialise. And in poorer countries where the population is high, the competition for jobs will be high, and the less money there will be left over to invest in specialization. So by virtue of being born in a poorer country one is less well-off when it comes to specialization.
The West won't be at risk of 'losing' jobs to remote work because we're not competing for the same jobs. Specialization will set the bar for hiring as it always has done, and the same scarce pool of talent will have to be used to fill these jobs. There will be a greater number of choices for specialized engineers to fill-- and it will mean more local jobs get filled by a more diverse pool of candidates. Looking at just local jobs would seem to imply that we're worse off, but not when you compare the number of new jobs that will be open to qualified engineers as a whole.
And they are. You will find amazing cloud provider specialists in those countries these days.
This may seem like a pedantic point, but companies don't base compensation on anything as 'fair' as CoL. It's all about market rates.
The US has a monopoly on being able to go to market.
US corporations are extremely efficient getting funds, putting that capital to work, and deliver a product people want to buy.
Historically they got that advantage because (among other factors) their internal market is HUGE, and successful US products were also appealing in other countries.
As I said there are other factors as well (regulations, overseas taxation, and exports to name a few).
Just like sovereignty is important the same counts in cyberspace, where being data sovereignty is as much if not more important in the future.
I have also noticed many generalized similarities between self-taught developers from the US and India in how they proceed against a problem as well. The CS educated developers are convention focused in that there is a certain way to solve problems regardless of the problem while the self taught developers tend to focus more on the goal, the solution.
At the high end of the talent pool, I don't think opening up is going to have a significant impact. We're mostly already internationally mobile or can demand competitive salaries, and a new supply of mid-tier talent will only create more capital-deploying opportunities.
I'm a computer vision person with a good grasp on 3d geometry, SLAM, linear algebra, statistics, filtering, etc.
We've had budget and I've been trying to hire another me for at least half a year with no luck (western Europe). Thousands of applicants and the couple of interesting candidates were snapped up before we could move (and likely for more than we could pay).
I'm about to leave and go on the job market, and I have no concerns whatsoever about landing a high paying job. It also helps that I have ties to the bay area and am more than willing to go back.
Now the company is losing you and they have lost 6 months of time to train a new employee. Many companies are short-sighted and unwilling to accept candidates that don’t match exact specifications to their own detriment.
I have been patiently training someone for 4 months. He's not getting it. He's not ready to deliver. Whether that's a reflection of my training skills, or him, i dunno. Whatever, but I'm tired, and now have to go through the pain of letting him go and beginning the search anew. Wish i hadn't taken the risk.
You think devs in Silesia earn something even close to 20K and aren't giant outliers?
It's like saying that SF salaries are normal in US
Also, the comparation should take into consideration PPP.
$300 000 pre-taxes in US is not 3x $100 000 after-taxes in EU. Especially if you adjust for other factors.
If anything the contrast is even more stark across the EU
Qualified doesn't mean you can churn out so many lines of code or have X years of experience at a company or whatever, it means you have right kind of experience. To a big company like Facebook or Google, someone from SV who has a few years in the local industry has more relevant "experience" to the position than someone in London with 10 years at a financial firm.
Not sure why people are still confused about this. But it seems many still don't understand it. The funniest thing is when people try to concoct some sort of fairness argument to explain this, or equally hilarious is when they try to come up with a fairness argument to condemn it.
Different markets have different prices due to differences in supply and demand in those markets. Want developer salaries to be much higher in the UK? Create an environment where a bunch of big tech companies all want to massively increase hiring there. Salaries will go up. Want developer salaries to be lower in Silicon Valley? Get most of the tech companies to leave. Salaries will go down.
One can say that ultimately the reason why Silicon Valley wages are so high is because there is a productive ecosystem that was so beneficial to the creation of tech companies that there was an explosion in demand for local tech labor. That ecosystem consists of easy access to credit and VC funding, existing networks of suppliers and vendors, existing mentorship networks for engineers and entrepreneurs, stable regulations and enforcement of contracts/property rights, together with sufficient local talent to pull off the difficult job of company creation.
London didn't have that to the same degree, and so has a lower demand for tech labor with correspondingly lower wages.
Well, yes, but the topic under discussion is whether the market is "developers that can commute to the local office" or "developers they can work on that timezone" or "developers anywhere," which all have different implications for the market clearing rate.
This probably isn't true. A quick googling indicates the average software engineer salary for Oklahoma City as being in the 70-80k USD range, while a similar googling says the number for the UK is around 50k GBP, which is...68k USD.
The median software engineer salary for the US as a whole is 110k USD according to the BLS, so even cheaper areas like Oklahoma City won't be super low.
Post tax, I'd expect the US advantage to increase in raw monetary value, and the cost of living in Oklahoma City is probably very low for a sizable city, but of course the UK would offer superior benefits.
But it's more about peace of mind. What if I lose that high paying job? I'll suddenly be in trouble for medical fees. Or income for that matter.
That kind of security is really great to have. I wouldn't want to live in a country without it. The US has a kind of "every man for himself" attitude. It feels like it stems from the 'frontier' mindset. You can climb really high but also fall all the way down. And that's fine, to each their own. But it's not for me. I'm happy to just have enough to live comfortably and have a nice job and not have to worry too much. This is also why I'll never be an entrepreneur. I'm very happy being a salaried employee with the lower income but the rights and stability that come with it.
This is the most significant and initially intangible difference between US and EU healthcare. It takes a while to realize that in the US you are a source of money and a cost at the same time. At literally every step of the treatment process, everyone you meet will make it clear, either straight up or through an extreme efficiency, dehumanizing the whole process and leaving little room for a holistic approach to medicine, which is still predominant in the EU. The doctors in latter will actually spend time with you and if they figure problem is elsewhere, send you off to another specialist. In contrast, you and your insurer will be milked no matter what in the US.
Even if you do, for anything more serious, especially emergency, you still use the public health care. And you won't get a massive bill because an ambulance brought you to an out-of-network hospital.
The private healthcare is for regular outpatient care and, as such, substantially cheaper than the cost of insurance in US + all of the co-pays, coinsurance and out-of-network bills.
Source: EU citizen in the US since 6 years.
Is this true? Taxes in the US are pretty high if you have a high income, and remember to include state and local taxes, and property taxes.
> the things you get in return, like pensions or healthcare aren't as attractive at that income level
Perhaps, but it's also attractive that _other_ _people_ get those benefits because ultimately the level of stress everyone else is under has an effect on your quality of life, one way or another.
An experienced software engineer might take home, after taxes, $15-20k/month in my US tech city. High-quality health insurance for an entire family is on the order of $1-2k/month, assuming you had to pay for it yourself. If you are a FAANG-level engineer, not only are you not paying for that but you are being paid twice as much.
The cost of health insurance in the US is a real concern for the lower half of the middle class. Software engineers live in a completely different universe of concerns.
So even for a very well paid software engineer, health insurance could effectively push you up 3% as your effective tax rate. Plus all the headaches that go with it.
US upper class in a wealthy area is very different from US lower middle class in another. And the same goes for Europe.
I'd list them now, but that would just invite the European Defense Squad to come out and tell me how all those problems are specific to Munich/Bavaria/Germany, ignoring how the original comment I was responding to was generalizing the same way.
The truth is that there are some things you can generalize okay on (e.g. healthcare being cheaper in Europe than the US, or the US having poor public transit), but many things really are specific to the particular European country at least. Biking, for example, might be amazing or completely terrible depending on the part of Europe.
There are upsides to the US, but when I realised that I could never see myself retiring there I realised it made no sense to spend my working life there, even if the salary would be higher.
The friction for US companies to attract global talent is now even lower. Now you don't even need to apply for an H1B visa to be physically in the US to work for a US company.
However, since the talent is not physically based in the US, this can be a great thing for countries everywhere in the long-run. GDPs are created remotely for countries around the world, and the knowledge these global talent gain by working with US companies will be dispersed around the world.
Hundreds of ecosystems will bloom around the world, leveling the playing field.
This is a great thing.
If it’s not between 9:00-17:00, sorry, bad luck for everyone else.
“If you ask all my teammates… ‘The one thing about Michael Jordan was he never asked me to do anything that he didn’t f*%king do.’”
Being situated in Germany I see many webdev jobs being outsourced about 1 hour to the east and about all the way down to South Africa and Mauritius („Cyber Island”).
This are the projects that work like normal. Then of course the vast majority is outsourced to contractors in India or China – but frankly communication in these projects has always been a bummer.
But then again, it's just my own bubble and probably depends heavily on the type of work and the frequency of communication involved.
I heard (not sure if it is true) people wanted to be paid in USD because car loans were denominated in dollars rather than pesos.
Wikipedia says that 60% of bank loans in neighboring Uruguay are in US dollars, so I am not surprised to hear that about Argentina, a country that has for years had an unofficial "blue dollar" exchange rate with the US$ (<https://www.coha.org/blue-dollar-black-market-the-illegal-ex...>) that is very, very different from the official one.
I think it's the nature of the market. There isn't as much demand to outsource senior roles, so the market just doesn't produce a lot of them.
This was not true 20 years ago where most of the work was software factories and nickel/diming big-cos
It's also bad news for employers in your country, because they're losing top talent like yourself to deep pocketed American companies.
We've been saying that for 30 years.
In the end, the demand for engineers is much bigger than we think. And if price of engineers goes down just a little bit, more projects will become feasible, so demand will go up.
So, if anything we might see wages grow less aggressively, long before they stall, and wages will stall long before they go down.
Who knows how long the party will last, but odds are it's longer than nmy career.
(Unless a bubble blows up SV tomorrow, hehe)
(FWIW, I don't really have a horse in this race; my skillset is unique enough that everyone who competes with me for jobs qualifies for special visas and there's a 10:1 or maybe even 100:1 labor shortage with a 6+ year ramp-up time. But I've worked with off-shore talent and seen the comps... my general impression is that Americans over-estimate the cost of living in the cheapest parts of our country and MASSIVELY under-estimate the cost of living in urban cores of other countries)
- Adam Smith, 1776.
We keep on seeing that scaremongering about "you taking advantage of remote work will be bad for your job oooooo!" but that doesn't make any sense. You forgoing its benefits won't make it not happen any more than riding a horse will stop people from using cars. Besides if they can why the hell aren't they already? The capability has long been there and they don't so much outsource to same order of magnitude.
Given immigration to the US for work and it implies the other way around - they need to pay US level salaries to get the high quality employees with any level of remote reliability (recruiting is a rather messy and slapdash endeavor at best for judging and obtaining quality).
Modern offshoring is a very different experience, and likely will have downward pressure on US wages.
Competent developers at this point are already working directly or indirectly for US companies that pay well. I don't know anyone who wants this kind of work who doesn't have it already.
Software teams are almost always better run with small groups of highly skilled developers that can and want to work closely together. Think special ops vs regular infantry platoon. Outside of FaaNG not many companies are working on projects that require a large number of devs.
Just over the last 6-9 months, salaries have markedly jumped.
There's still a huge thirst for talent that isn't being quenched, and global pools don't help either.
Facebook, Google and others have satellite offices all over to soak up talent elsewhere, but they're still ultra competitive in the US.
They can pay a senior engineer $350k in the US, or an equivalent experience senior engineer $100k in Europe. There is no shift occurring though. They're still hiring like crazy everywhere.
There's no place like the US for tech workers. Nowhere even comes close, even on a CoL-adjusted basis. European developers get screwed. South American developers get screwed. Asian developers get screwed. US developers don't get screwed.
I was recently offered a job in silicon valley but despite the fact that I would make several times my current wage and the language would be better for me (I'm not a native here), I wouldn't consider it. Money isn't everything (and silicon valley is crazy expensive, it wouldn't amount to that much). It's about quality of life for me.
I think it would work out worse in SV though in terms of spending power. With the exception of tech toys which tend to be around the same price everywhere so relatively expensive in Spain.
But I'd give up a lot. Being half a world away from family and also the other drawbacks I mentioned. No, I'm fine here.
Also, why would they bother paying US salaries to employees stationed in Spain? When I moved here from Ireland (also EU) my salary actually went down a bit :) And they already scaled me up a lot within my salary class, if I had come in here 'off the street' I would have made even less. Multinationals already have this scenario a lot and they pay local wages.
People are willing to work here for local wages. And local conditions are mandatory here if you live here. Working for a US company and for US conditions while living here will not fly by EU law (the only exception is NGOs like the UN).
So I don't think it will change too much to be honest. If anything it will provide more downward pressure on US salaries than upward pressure on the ones here.
I wouldn't discount yourself. A lot of people have this idea that becoming a senior engineer somewhere like Google must mean you're super elite, but as someone who's worked at Google for several years, I really don't think that's true. Google developers as a group are quite solid of course, but real 'rockstar' devs who just blow you away with their skill are a small minority even here.
Imho the best place to live in Spain is in a 'capital de provicia': you have all the services the law mandates but it is not crowded.
Also, walking everywhere is really feasible. I stopped using the metro for everything due to Corona. Though I picked it up again after getting the vaccine, I still retained the habit of walking. Barcelona is nice and compact, I can walk everywhere within an hour or so. Not sure about Madrid, I've only visited.
If I had a car I wouldn't even know where to leave it to be honest. In my area there's no parking available except some highly expensive garages.
I've worked with tons of developers in South America and they were very happy with their life, their benefits, their pay...
Confused on why they are getting "screwed".
This is text based comments, inferring attitude is a huge black hole of impossibility :)
That's millions if you save the majority for retirement. It could be the difference between nursing homes and an independent travel-filled retirement at a reasonable age.
Of course, I'm not here to make decisions for anyone. And people have personal reasons to not pursue immigration, that's fine. They're making a steep trade-off, though.
You think this is just about talent and it is not. It is combination of so many things such as taxes, social care, government ideology, culture in that country, retirement/pensions, cost of living in that location, minimum wage anchoring, how much it costs to dismiss someone, etc...
Also, barely anyone in the USA makes 350k, so this entire argument is kinda moot. Barely any developers make $350,000 so this comparison is just kinda crazy.
Even in the USA average salary is $177k for Senior executives: https://insights.stackoverflow.com/survey/2021#salary-comp-t...
We talk a lot about FANGS here, but way more people work for normal companies.
I'm not going to say it's okay, but there are a few things to keep in mind. The most obvious is that salaries are not determined so much by how productive the employee is but by the relationship between supply and demand.
But that's not the really interesting part. The interesting part is that when you factor in taxes and CoL, you might be earning less gross but walking away with more money after paying taxes and living costs.
Why can they do this?
The value of healthcare is not $250,000 per year per person. It's not even 1/10th of that.
As for safety nets, that depends on personal risk tolerance. As an experienced developer, it's not particularly difficult to find work. Even an average one.
We're talking about a massive difference in pay. That difference could amount to literally millions of dollars in retirement for your family.
These are senior positions so don't think this is normal. Average dev salaries are $60k to $150k in USA depending on a ton of factors.
The USA also has no social safety net so it's like comparing oranges to apples when you look at parts of Asia or Europe :)
For example, in the USA you are looking at about 22% for taxes on an employees salary that the company pays. In Europe that can be as high as 50%.
Just one example...
- I don't really want to adapt myself to their timezone. Perhaps 1 or 2 or hours of shift from my tz, but not more
- I don't want to work as a contractor. I want to be an employee
- I want at least 28 business days of vacation per year
- I do 9 to 5. No more, no less. I'm not in my 20s anymore
Because of the reasons above I don't even care looking for remote positions in American companies (which are scarce already).
In many tech companies, you have "unlimited" vacation. You can probably take more vacation that you already get in Europe. This is true of my company, mParticle.
I can work 9-to-5 as an employee. That is the culture of the company that I work for.
People can choose to work remotely or in an office.
I’ve always heard that places like this tend to pressure you into not taking many days or taking a more “normal” amount.
I just started a job with unlimited vacation, so I’ll have to see how it goes. I think best case is I can have more shorter stints through the year.
In European workplace culture, the demands of the work tend to be immaterial to the amount of vacation you can take. If things are busy, it's up to your boss to figure out how to handle them while you are away. If they can't do that, it's seen as their failure, not yours. However, if your employer knows in advance that things will be busy, they have a limited ability to adjust the timing of your vacation, but they usually have to do that months in advance.
Few US companies offer most of the benefits Europeans expect, from free/cheap health care to child care to generous maternity/paternity leave to low tuition to job security to strictly enforced equal opportunity.
Combine all of those into one employer in the US? That unicorn doesn't exist. However such beasts live all over Europe. But they just don't pay US wages, perhaps for obvious reasons.
What's more, as soon as US companies hire remotely en masse in Europe, regulators there will surely demand the same benefits & protections for their people from remote employers. This will erase the economic advantages of outsourcing there unless wages paid there are substantially lower than in the US.
If US company doesn't have a local office in that European country they can't anyway offer a normal employment contract, that has never been possible. Social security, healthcare, pension needs to be paid. So either the employee is a freelancer, or company has an office in the same country to pay the employer's dues.
This applies to intra-EU work too, someone living in Germany can't accept a regular employment position in a Spanish company remotely.
This is important!
The labor market in most EU countries is very strictly regulated, mostly to the benefit of the employees. If the company you try to work for does not have a branch in your country (chances are, they don't) then there is a huge bureaucratic burden and sometimes even a legal grey area.
Speaking from a German perspective, its barely worth it to try to apply for a remote position at Facebook (at least based on the salaries I've found). As a contractor you'd have to battle a huge administrative effort in terms of social security and healthcare, not to mention that everything is more expensive as a freelancer since there is no employer contribution to your healthcare payments. In the end you may end up with slightly more money in the bank, but with fewer employee protections and a huge administrative burden. So I'd really question if it's really worth it.
However, Germany is actually a market with decently high salaries for the IT sector, unlike some other countries like Italy. So I could imagine that there is significant demand from other EU countries
You have to deal with more paperwork, but in my experience it definitely is worth the trouble to become an independent contractor in Germany -- also if you work only for local companies. Generally with local work you can expect to earn at least double as a freelancer, though I'm sure there are some niches that pay well also for regular employment positions.
So they might not be there physically, but this is not really a big concern if you're a US company. It might be different for the country as a whole though.
It's a good model, because then when the laws of the foreign country change to say "Women's average salaries must match mens" or "Workers shall be paid 2x rate on religious holidays" or "Employers shall pay extra tax for hiring people over the age of 62 years old"... All those cases can be dealt with by the foreign company who knows the local laws and customs.
I haven't seen it mentioned here but while in many cases you can as an employer outsource payroll and labor law compliance, you can never completely shed the potential liabilities that come with employing someone and this can get complicated when your workforce is based in different countries.
There are a lot of things that can go wrong. Your payroll/compliance vendor could screw the pooch. Your foreign-based employee could do something negligent or malicious that leaves you in a legal bind where your costs of protecting your interests skyrocket. And your employment of an individual in certain countries could subject you to laws and taxes you never even knew about.
Of course, a growing number of companies do employ remote workers around the world but it's really not as simple as "I can hire anyone in any country as long as they are talented". The world simply isn't that flat.
The local firm is the one who technically employs the worker and takes on all these risks.
At any point, you can stop buying more code, and the local firm will have to face the consequences.
First, there are some countries in which the law would consider your business to be the employer of a worker even if the worker was hired by an EOR. And others place limits on EOR relationships, such as the length of time a worker can be continuously employed by an EOR.
Second, an individual you employ through an EOR can still take actions that potentially expose your business to risk. Think data breaches, intellectual property theft, etc. In many legal matters, since you are not the employer, you would not even have the ability to take direct action against the worker and would instead have to have the EOR act on your behalf, which is of course another source of counterparty risk.
Finally, your relationship with the EOR is not a one-way street as you seem to think ("the local firm will have to face the consequences"). Under any EOR contract, your business has obligations to the EOR as well and a reputable EOR is actually probably far more likely than an average employee to go after you in your home country if you breach the contract.
As an expat who has done business in numerous countries, I offer the following blanket advice: never do business (in any shape or form) in a country where you're not capable of and prepared to get your hands dirty locally (with the legal system, etc.).
I have personally seen hundreds of FANG rockstar engineers leave the country to Canada and Australia where their immigration processes are easier and provide an easier path to citizenship instead of keeping them as indentured slaves for an indefinite period.
Same goes for Germany and countries that provide a high quality of life for their people.
I understand the idea, but there is a reason people want to leave places that are "broken".
I also think you underestimate how much effort it takes to really start over and become properly integrated in a new country. It is a very enticing prospect for many to side-step this issue entirely and still get an almost unfathomable salary for some countries.
Remote is a great opportunity and one I've used at every company I've built. But, the thing that draws global talent is money, and American companies have all the money. If anything this is going to hurt local companies who can't compete for top talent hiring out of the USA :)
I will note, i think Canada is doing a great job of being pro-immigrant in a way the USA can't and American companies are opening lots of offices and hiring there.
I don’t really understand. Why would I disregard “the dysfunction”? That’s very much at the core of what shapes the rest of the worlds perception of the US.
Agree on the second point though. It does (potentially) globalise the job market quite a bit.
The power of the American narrative is huge.
I know so many devs in Brazil who want to live to USA or Germany, as well as many other places. Those places have problems at a much higher level than our current stuff.
High level of crime, too much politics, education too expensive, healthcare too expensive, no public pension funds.
But the key point being narrative around the American dream, freedom of religion/expression, and all the other things I mentioned. Moving to a new place and taking a risk is a feeling based decision. Sure we might dress it up with some logic, but at the end of the day the USA has soft power in spades.
From a EU-centric perspective the soft power the US have is not that strong.
But, globally brand America's brand is quite strong still. And that is my point, don't forget how powerful that brand has been for the last 100 years. It doesn't disappear overnight.
Not sure what your point is. How do you think people shape their opinions and perceptions on things if not via media and the internet?
What would this “reality check” consist of? I would move to the US for a number of years just so I can determine whether I want to move there? Should I read the collected works of David Foster Wallace?
It’s perception we’re talking about here. It doesn’t have to be rational nor accurate.
How has it rapidly declined? Please list the ways. I don't necessarily disagree, but I am curious.
#1 Western Governors University (WGU) North Carolina 121,437
#2 Southern New Hampshire University New Hampshire 104,068
#3 Grand Canyon University Arizona 90,253
#4 Liberty University Virginia 79,152
#5 Ivy Tech Community College - Central Indiana Indiana 72,006
The USA is very affordable if you look outside of SF/NY and compare it to Western Europe (esp with tech pay). What are you comparing it too?
Agreed Panama is a bad example, but not Croatia - it's politically stable, and I don't believe many people leave because of corruption.
The average salary of a millenial is $47k a year, average millennial household makes $71k. The average mortgage payment in the USA is $1,487 ($18k over a year). So 25% to 38% of salary right? I think I did that right but feel free to clarify. Seems doable right?
I think the USA is a mess, especially for millennials but when you look at the housing market in Europe for average salaries we are doing really well overall: https://www.statista.com/statistics/237529/price-to-income-r...
Very few people immigrate from anywhere. It is very hard. I don't think people leave because of corruption, my point being they have higher levels than the USA: https://www.transparency.org/en/cpi/2020/index/nzl
It is very normal to rent your whole life, especially in big cities. Renter laws are very strong. House ownership is higher in rich, rural parts of the country (think south of Munich), so this skews the average house price. Also the quality floor is much higher than in the US, pushing up average prices. $20k trailer park homes simply do not exist in Germany.
This statement feels like it requires a lot of justification. I work for a large company, we are happy to hire out of Europe, SA, or anywhere else so long as they can work on their team's time zone. We are willing to beat basically any offer you'd imagine getting in those areas and hiring is still hard, qualified and experienced people are a rarity.
When thinking about "overvaluing talent" it's worth remembering that just 5 years ago the big tech companies actively conspired to keep pay down because margins on developers making 120-150k were just insanely high[0].
[0] https://www.npr.org/sections/alltechconsidered/2015/01/16/37...
I’m sorry, what? Ask anyone in NYC what they think of the corruption. Ask them if they feel that the taxes they pay are put to a good use. Ask what they think of MTA, of the unions, of the mafia connections.
And ask any expat what they think of lobbying, a.k.a. legal corruption.
A waist high pile of poop is much different from one the size of a skyscraper. I am not saying it doesn't have aspects of corruption, but it is low and solid resources on the local and national level to constantly investigate and make cases.
Legalizing corruption through lobbying is a good move. There are other options but better than keeping it underground.
Corruption in Romania and other Eastern European countries is more generalized in the sense that there is more small corruption. Corruption cases in US are more serious.
Not backed up by a lot of companies/orgs/data... https://www.transparency.org/en/cpi/2020/index/rou https://risk-indexes.com/global-corruption-index/ https://tradingeconomics.com/united-states/corruption-index
Agreed, America's biggest problem is that 40% of Americans believe they are #1 at everything :). We should be stealing ideas left and right from other countries and instead we are stagnating under the belief that only we know how to do things.
We've already been offshoring to Asia and Eastern Europe for decades now, and even though we should have a good handle on what does and doesn't work by now, I still see companies making the same mistakes, and either having to pull back, or just fail and be too blinded by hubris to figure out why.
They are not problem if you do hiring directly and select right people.
Biggest problem is that companies want to hire bunch of worm bodies and dump trash tasks on them.
Managers expect that they will be able to throw vague requirements and bunch of people who are not part of their company will figure out what to do. What is especially funny that bad things happen even with people inside companies when manager tries to just throw vague requirements at dev team.
It is also problem with big "software houses" where you hire bunch of people - nowadays people have good internet at homes are much more conscious and one can hire specialists directly from other country and skip BS providers.
Hiring directly in other countries is difficult for all but the biggest companies (who probably already have offices in those countries and have been hiring in those countries for years).
I work in Poland for company from the Netherlands and I know other people who have "single person company" that are working for companies in UK and US. I even did some work for company based in UAE.
You just have to spend time looking where to find such people. Then of course you have to do trial period to see if they won't flake out but that would be the same as if you would hire someone from US.
Regardless of any actual enforcement, most US companies don’t want to deal with the potential issues of getting tangled up in foreign labor disputes, or getting tangled up in foreign courts over IP disputes.
as someone in PST/PDT with a sleep disorder, its pretty easy to work with east coast people. i've had a boss in the UK before and it worked because he was okay with ending his day with a 6pm meeting his time. but working with people on india time is going to be a mess one way or the other.
This is patently untrue. See how well Shopify is doing in Canada.
> Canada is going to be an immigration station for people companies want to bring in but can't get US visas for. Its already a thing.
This is true though!
I'm skeptical given there's this entire content called "Europe" with tons of English speakers, even native speakers, living largely in a 9-5 culture with plenty of skilled, educated developers willing to work unconventional hours and the US has barely tapped into that workforce yet. Given there are many legal issues and gates, but it's not like the US and Canada are the only places with skilled developers.
Now it is the time to build real distributed teams where it is easier to hire a person from other part of the globe to be part of your team.
Working directly with them and not hiring bunch of warm bodies to dump trash tasks on them.
That's also the dirty little secret of digital nomad workers, that those of us that worked remote long before the pandemic already understood: these workers don't follow the law. How many of these people are correctly paying and filing their taxes for each country (or US state!) they work in? Probably close to zero.
Another place I worked had a policy you could best describe as "don't ask, don't tell." They didn't want to know if you were working from the beach in Thailand. As far as they were concerned, you were still in the US state that your forms say you are in.
The legal framework as well as benefits plans have a lot of catching up to do before some new distributed dawn occurs.
It’s not just “outsourcing” that’s gone remote, it’s key players and teams. That’s a big difference from earlier waves.
The ability to pay and live appropriately will be the chief determinator. US companies might pay better on average, but we may start seeing larger and brighter sparks elsewhere in the world.
I'm really not a believer in distributed, remote teams due to time issues. It's more feasible in a similar time zone +/- 1 hour. Beyond that you end up with people working into their lunch hours, etc.
Global time differences within teams are really just a massive headache and a non-starter for most organizations.
it's not a given that an entirely remote workforce is more cost effective than a partial remote workforce - outsourcing has been there for decades after all, and it hasn't been an existential threat to local jobs - remote worker lack the middleman costs but also the organizational support and work structure.
The education system and opportunities in the latter create very little chance that those kids will grow up to work for Google. I've had CS teachers in the magnet schools - these classes should be the top CS high school students in the district - ask me to donate old broken computers to work on. When the pandemic started and home schooling became a need, I read that some poor districts discovered that 50% of their students lacked a computer at home - their only Internet connection was via phone. I've had employers tell me that (a few) kids didn't know how to use a full-sized keyboard. Think how far that is from becoming a developer; think of the vision required and the obstacles they would have to overcome.
You need more than an Internet connection to have an opportunity to become a software developer, or for any job.
(Writing that makes me think: A development environment designed for beginning developers using phones might give some of these people one piece of the puzzle. Vim isn't so great on a phone.)
I do think there's a decent chance CRUD-related dev work wages will probably be suppressed. I think that's because the work is easier, so lower IQ people can do it well but also (and probably more importantly) a lot of that work is in the process of being automated anyway.
Remote work does not work when part of the job is helping others, learning from others. Figuring out things.
EU, for instance, might be paying even less than developing countries (but mostly due to social charges, which may not apply to overseas workers?).
Croatia is not palatable for reasons other than geography, for example.
Companies don't even really want to deal with different employment regulations and tax policies across different US states.
If China threatens Taiwan it would be idiotic if the USA did not offer open work visas and fast path citizenship for any Taiwanese refugees that want to leave. This would be the best non-military option for dealing with that, and would help us benefit from brain drain.