Earnings Ceiling for Tech Professionals over 40(insights.dice.com) |
Earnings Ceiling for Tech Professionals over 40(insights.dice.com) |
There seems to be a substantial tech industry aversion to hiring developers in 40s (sometimes 30s) or older.
But if you suggest that developers in their 40s expect salary to keep growing without limit, that fuels hairtrigger resentment arguments about how those people are just greedy and unrealistic, and that that's the cause of any "ageism" they perceive.
That would be a diversion from legitimate issues of people getting their resumes illegally screened for age, interview tests targeted at people with CS101 fresh in mind, rejecting candidates for "culture fit" (not just over-20s, but women, certain ethnicities/racial backgrounds, unapproved sex/gender identification), etc.
I'm happy this is a thing in the US and wish Europe would copy this since in some Western European countries like Austria, having your birthday and photograph on your resume is mandatory making discrimination a piece of cake.
This seems especially bad in places like France where the government explicitly does not collect demographic information on things like race and ethnicity. It allows employers to screen people based on race, but the government cannot prove it.
I used to hear in the US that some companies' HR had policies of discarding all resumes with photos or certain other details, to reduce risk of the company appearing to discriminate on basis of ethnicity or family status, for example. Perhaps apocryphal, but I always heard not to include a photo.
And we heard of studies in which resumes with nothing changed but the name, to a "black" one or a female one, were treated differently.
But then the most popular US resume Web sites introduced photos, to appear alongside your resume and your messages.
Another reason people expect their salary to go up is because it is a basic expectation that has existed for decades, and one upon which the supposed fairness of the current market is predicated. The idea is that you start young, earn little, work your way up, and earn more. Life is _much_ more expensive the older you get.
That explains why income for the same person at differing times is correlated with age. It does not explain why income at the same time for different people is also correlated with age.
> Life is _much_ more expensive the older you get.
It's much more complicated than that. Cost of living goes down when you've paid off your student loans, down when you've paid off your mortgage. It goes up when you have children, up more when they enter college, sharply down again when they leave. About the only cost that consistently increases is health care, but insurance and other factors make that complicated too.
Also, we don't live in a world where people are paid according to their need, or where many people believe they should be. We live in a world where people are paid according to supply and demand (distorted somewhat by lingering neo-feudalism but close enough). People have to justify their salary based on what they produce, not what they require. Nobody expects their salary to go up based on the latter.
A developer with 10 years of varied experience can usually do just as well as someone with 20 years of experience. I also believe that the idea of the 10x developer while not a myth, is so rare it’s not worth trying to find for most companies.
I speak as someone in my mid 40s who has been at this professionally for 20+ years [1].
I’m debating whether I want to take the next step of consulting or just stay in development. I see my salary hitting a ceiling in the next two or three years and I think I am okay with that.
[1] well for all intents and purposes maybe 12 years. I stagnated for a few years and became an “expert beginner”.
I would expect a salary plateau to be a natural result of the above + supply and demand in the market. Maybe that’s what the term ageism has come to mean (not its original definition)?
Imagine that you have a close family member with Stage 4 cancer. Who wants to have you on their team? Nobody, that's who. And you better be living in a jurisdiction with solid legal protections, or they will fire you in a hot second.
That is a far greater concern than salary stagnation.
The last one slipped, and as much as admitted that he was concerned that I wouldn't be able to work as hard: he had presumed that I had children to take care of.
It used to piss me off, but now it's just discouraging.
There are multiple other factors going on here:
1) As senior developers become more skilled there is a diminishing return in terms of compensation. This happens regardless of age. A developer with 40 years of experience is not really worth that much more than a developer with 30 years of experience.
2) As developers get nearer towards retirement there is less incentive for them to stay at the top of their field.
3) As developers get older they tend to want to find a place they enjoy working at rather than playing the salary game every 2 years.
2. The perceived value of that extra experience is even lower. How many recruiters or even engineering managers can honestly claim to be able to leverage the last 5 years of experience from someone with 20+ years?
3. In most industries your salary stagnates much earlier than that unless you transition to a management role, and I think it is safe to say that developers are much less keen on taking that step than say bankers.
Some folks coast and fall into the category of "1 year of experience, 10 times in a row." Someone else gets more out of 2 years of working than the coasters get out of 10. In the worst case, you have a coaster who thinks they're actually in the second category.
A simple number for years of experience is very hard to interpret as a result. Take someone in the second category and give them 10 years of experience and you get someone amazing at their craft. But you have to be able to reliably discern this in the interviewing process.
The pointy haired bosses all think we have severe autism and can't deal with people.
Over the last two months I have been arguing in a professional manner for my company to move towards .Net Core and React (away from older Framework code and Angular 1.x) Arguably neither of these technologies is super new, but they seem to be new enough that I've been getting push back over various concerns (often over learning something new). I have to say, on the whole most of the push back is from younger developers, many of whom are in their mid-thirties.
My point being that I don't believe that age is necessarily the deciding factor. In my experience most developers tend to lose some of their interest in the field at some point in their career and other do not. Everyone seems to hit that point at a different age, some of them quite young and others quite old.
I'm definitely risk averse but not averse to new technologies. ;-)
I don't know where they are getting their data but that's a lot lower than good developers of all ages make. You can see on https://levels.fyi that large tech companies will pay senior developers 200-400k routinely.
I don't necessarily doubt the analysis but the data is very incomplete if they didn't see a single offer over $150k.
I don't think such a general statement (even its direct inverse) can be true or even particularly useful. At a certain point you're playing the odds. We're dealing with X, what's the chance that someone has seen X before or can see a connection to something else? In those situations, 20 years of varied experience can be a lot more valuable than 10 years of varied experience, especially if the 20 includes areas or approaches that have been forgotten/ignored for most of the last 10. (You'd be surprised how often the ebb and flow of tech fashion produces such results.) Note that I said can. Whether that actually happens depends on the exact technology, what experts you already have, team size/cohesion, etc. "Is not" without qualification expresses a more absolute and certain opinion than is warranted.
I'm not as hungry as a intern but I present well, and at the end of the day, thats why I get paid.
I worked with people at IBM and DEC at the point probably just at the peak of their heyday when the average experience was about 15 years.
Oh ... my ... God.
I have never had that kind of interaction again. Being able to just call up and talk to the folks who designed FPU algorithms, x86 emulators that smoked (I think the FX!32 guys knew more about x86 than AMD), BDD analyzers that actually matched circuitry to descriptions (NP-hard problems--solved every day), debugged CPU failures by having 3 old guys light up cigars, put their feet up and think real hard ... I can go on and on.
Yes, those big, sclerotic companies had lots of deadwood. But, there was a 25% that was amazing.
About once every couple of years now I bump into someone genuinely as good. It's really rare now.
As a developer with 20 years experience ... I'm a lot better at what I do than I was ten years ago. Better at seeing how it relates to the business I'm working with, more productive in ways that are not just LoC.
I'd be OK if I can sustain my current income... but I'd still like to take the step to being more of a consultant. I'm dancing on the edges of it now, between contractor and consultant.
As an architect/tech lead I'm much better than I was 5 years ago. I know how to manage engineering practices and when/how to apply them, better how to design a systems, and how to better manage relationships/politics so that I can leverage my experience into actual implementation and design.
But as an individual contributor I don't think I'm a whole lot more valuable unless it's in a domain I have deep experience in like real-time.
I have a coworker who is probably 10 years younger than I am but has been working for the company for 7 years to my one, how could I better understand the business of the company than he does?
I worked for one company when I was 35 dealing with the complicated rules of the railroad industry. My manager was 28, but he was the founder of the company before it got acquired, built it from scratch and had 90% penetration in the particular market segment, how could I be more experience at how my code relates to the business - one he studied since he graduated from college?
The problem with the 10x myth is that it assumes a single dimension of productivity, and that no-one is ever negative so there's some sort of sensible, positive "minimum" to talk about.
Senior developer leads a team of three other medium-experience developer, and completes the project in six months. Junior developer leads a team of 5 other even more junior developers, after six months they've got nearly nothing, so we pull in another 4 semi-skilled developers and 2 contractors who are drowned under the mess and don't know what to do, and six months later, the project is cancelled entirely.
How many times better is the senior developer?
There's nothing even remotely skewed about those numbers, either. Both are totally realistic. And yes, senior engineer can fail, and junior engineer could succeed. (Although the range of projects where a junior can succeed and a senior can fail assuming adequate initial knowledgebase for both is fairly narrow; generally if you find one, you've probably got a strawmanned "senior" engineer who isn't actually senior but just a collection of stereotypes in your head.)
If you're still offended:
A generally senior software engineer who knows nothing about the domain and his team of three develop furiously for a year and eventually deliver the first iteration of what was asked for, with another year to go on the project to finish it. A generally software junior engineer who is deeply familiar with the problem domain listens to the customer's problem and after a day's thought realizes what they really need is a very different, but also much simpler, solution, which they deliver in two weeks by themselves. How many more times valuable is the latter?
(I've actually advised someone like that in the construction industry. They were switching into a programming career in their 40s. I said, look, there's no realistic chance you're going to outprogram me in a really academic, isolated sense of the term. But you've got contacts, the ability to pass the shit test with other people in your industry which I and/or generic software engineer have no chance of, and a deep understanding of the problem domain. Don't worry about trying to outprogram a 20-years-experienced software engineer, take advantage of the facts that you know what your customers really need, and... you're there! and I (standing in for generic software engineers) am not! Life's about playing what you're dealt, but people are generally dealt more cards than they realize, I think. Not necessarily better cards, but they have more cards than they think.)
I tend to agree there isn't a such thing as an engineer who is 10x more productive than another, in the sense that they will do the same thing as that other engineer, just 10 times faster. The key comes from doing things differently, most of the time.
There's other differences as well, such as being aware of the pitfalls. I recently got myself put in charge of a billing system, and as a senior engineer, I at least have the good sense to be suitably terrified, for instance. "Move fast and break things" has its place, but "careful, paranoid engineering" does too. Almost by definition, your really junior employees don't really know how to do the latter. (They'll often be able to cargo cult it, which can be a start, but they won't really understand it.)
but "careful, paranoid engineering" does too. Almost by definition, your really junior employees don't really know how to do the latter. (They'll often be able to cargo cult it, which can be a start, but they won't really understand it.)
I also specifically said the difference between someone with 10 years of experience and someone with 20 years experience. If you have 10 years of experience -- you hopefully aren't a "really junior employee".
Bashing at something until it finally works is, to me, something we do as beginners when we’re still in the mindset of solving every problem with code.
> The problem with the 10x myth is that it assumes a single dimension of productivity...
There's another problem with "10x": people evolve.No one starts their career as a 10x-er, juniors are not juniors forever and people take time to find their knowledge, preferences, the right context, employer, coworkers, etc, before they can even discover their "super-powers".
And anyway, all the people I've ever met who could be called "10x" would immediately reject that label and/or buffer it with generous praise of the team in which they work. They would also tell a LONG story of how they got to where they are-- hint: it never starts with being at the top of their game. Instead, it always starts with or involves a lucky-break or a hard situation made better by someone who believed in them.
You still have to improve your so-called "soft" skills, improving communication up and down the chain, and it does involve a reduction in actual coding time, but you end up more of a code manager than a person manager.
None of which says there isn't a struggle, but the world is very different than when I had a manager told me I could never expect a decent job if I stayed in coding.
Note: I'm not saying that older workers (I'm 54) deserve everything they get. There definitely are and have always been some older laurel-sitters whose friends pay them more than they should, and I was acutely aware of that when I myself was younger. I'm just saying "but they don't give proportional value" is often less true than people think.
But another way to view this is through the lens of supply and demand. If there are over-supply of the roles that can only be filled by older workforce, then the pay will reflect that.
In a word, you make more money by transitioning from hard skills to soft, and since most developers are unwilling or unable to do this their salaries will plateau.
But compared to the financial industry, and probably law, developers can count themselves lucky. Those industries work on an “up or out” principle, sticking around for 20 years as an analyst simply isn’t an option, no matter how good you are.
It does seem strange that they wouldn't see a single offer over $150K, but I wouldn't at all be surprised if the median level was considerably lower.
I'm approximately on par for my age cohort based on the article, and that's about 500% of the average yearly family income where I live.
(the data in the actual link you're responding to, with actual level information)
$120k/year is what I'd expect someone with 2-3 years experience to be making at Google as a base, with anywhere from $35k-$80k additional in signing bonus and stock offerings. "Senior Software Engineer" means different things at different companies, but to me it indicates someone who is expected to lead IC for a team, who has at least 5-7 years of experience building software.
source: work at FANG company, have had exactly that offer with that experience level
It's not a difference of FANG vs. non-FANG, and not even necessarily of location, it's a difference of tech company (or trying-to-act-like a tech company, "tech-like") and not. A lot of words could be spent trying to define exactly what I mean by "tech company" and certainly some non-tech-companies might have tech sub-departments that are given enough autonomy to be sufficiently "tech-like". But mostly it's just a mindset. Tech companies are full of people who understand it's the tech workers who are responsible for the lion's share of the company's success, and so they're often run by technical people too. They understand it so well that some of them had to be sued in order for salaries to rise proportional to contribution again (even if still too low) since the socially low rung of individual contributors even at tech companies often fail to see it well enough to complain, which puts the sibling comment about 2009's "reasonable salary" in another light. (See https://en.wikipedia.org/wiki/High-Tech_Employee_Antitrust_L...)
https://news.ycombinator.com/item?id=19797601
To get an offer at that level you would need to be quite good. For example you might have a couple decades of experience working on boot loaders, compilers, hypervisors, OS kernels, and similar things. You'd be comfortable working with assembly language.
– Buddy Kane, American Beauty
I doubt many people know this explicitly, but I think the necessary behavior is intuitive to lots of people. I suspect people "on (or near) the spectrum", which is far more common in tech circles, get their ass handed to them career wise many times because of this, because they are in some sense looking at a different version of reality than other people.
In more traditional corporate roles, the compensation path is tied pretty heavily to growth in managerial skills and subject matter expertise in ways that don't always have parallels with software development. Even there, though, I've started seeing similar "ageism" as the article points out come into effect. Clients I've worked at have started coming to the realization that younger and more tech-savvy workers can often get to, say, 75% of the value of a 20-year employee for half the price in compensation.
Right now, for instance, I’m getting into the $cool_kids front end stack and I am barely above the level of “don’t eat the chalk”.
Though, like tech, your trajectory at that point is usually management, analysis, or teaching.
That's a pretty crucial question. Certainly at my age there really are fewer people. How true is that at 40? How unique is that "experience premium"? It seems impossible to evaluate the reality or prevalence of ageism without concrete answers (which I don't know either).
But man, was he ever transformative. Not only in terms of handling the most technically challenging tasks and solving the black-magic challenges that nobody else wanted to touch, knowing the C standard like the back of his hand, and getting things done quickly to a high standard of quality. He also was a force multiplier, because he would help others debug their problems when they got stuck and get them back on their feet and productive again, give advice for how to best handle various edge cases, and designed and maintained our tooling. He was a mentor to junior members of the team, and the team lead would ask his input and advice for how long things might take, what risks he could see causing delays, etc.
You can't plan around having someone like that but they make a world of difference if you're lucky enough to work alongside one.
I suppose I so deeply agreed with you I went total mental blindspot on the idea that someone could be a 20 years skilled software engineer and not be (technically, if not necessarily managerially) leading at least a small technical team. I'm not going to delete my post because I think it still has interesting stuff in it, but I do apologize for my tone of disagreement.
That's very hard to say.
> What are you doing now that you weren't doing 10 years ago that is a real game changer in terms of value?
Technical leadership on teams of developers. Mentoring and enabling younger team members. Having more cogent ideas about tooling and delivery, having more well formed ideas about delivering the product my client needs, not prioritising doing things in technically interesting ways. Managing upwards/sideways when I encounter problems in product ownership and similar posts. Teasing out requirements where these are incomplete. A lot of things.
I'm also more confident in tackling larger problems, and understand more about the big picture, from kernel to front end.
Much of this is incremental, of course.
> But as an individual contributor I don't think I'm a whole lot more valuable unless it's in a domain I have deep experience in like real-time.
Are those things you mentioned not part of your individual contribution? They don't translate directly to LoC, but they likely to contribute directly to faster, simpler delivery of what the client needs.
Sometimes your job is just transforming fairly well articulated requirements into code and on these I notice I haven't gotten a lot better than I was 4-5 years ago.
Most senior developers that I know are so good at the above that very little communication is required about even the problem. So in reality, they end up sacrificing the team and becoming one man armies.
This goes on until retirement, and then a junior replaces them because they're cheaper and they're stuck with trying to learn a huge ball of code on their own, because teams became obsolete and documentation was an after-thought, that could have been done with a bit more effort on the senior developer to get out of their box and actually impart knowledge.
However, there is the opposite end of the spectrum where they write great code and could do everything themselves while still knowing crap about the problem domain. At that point though, does the PD really matter? Most people , including customers, just accept code results on their face anyways.
And honestly, experience tells you when that's okay. If you work for a venture backed company where the owners and founders only goal is to get something up and running to convince investors to give them money or to survive long enough to go public (statistically unlikely) or to get acquired, the goal isn't to make good code that can be maintained long term. They don't care if the whole business is built on a house of cards that will fall as soon as they get acquired.
Too many employees drink the kool-aid and think the owners are interested in anything else except for an exit strategy.
"Great code" rarely gets someone promoted or recognized.
With monopsony and other anti-competitive distortions being the name of the game in the labor market, using the "labor market" as a good indication of anything is also pretty useless. There is no labor market, for the most part, at least not in the sense that anybody means by "market."
By the way, the median first-time homebuyer in 2019 is 32 years old. With 30-year terms being the most popular, that means that they can expect to pay back their mortgage at about the same time they are paying a great deal more for medical insurance, life insurance, prescription drugs, medical treatments, etc. And if you think you stop paying for children when yours grow up, allow me to introduce you to the concept of "grandchildren."
Calling them "policy arguments" is way too charitable, and I'm not papering over anything. The excuses are irrelevant. The fact is that student loans exist. Mortgages often get paid off way before 30 years (less than 10 in my case). Not everyone even gets a mortgage. Children grow up. Some don't even rely on their parents to support grandchildren, and we'll be coming back to that. Some people remain healthy later into life. Cost of living does not uniformly get "much more expensive" as people age. Your claim, so you prove it.
> monopsony and other anti-competitive distortions
Those are very serious problems and I even alluded to them before, but to claim they're so bad that the laws of supply and demand have become inoperative is inane. Not even worth engaging on.
> With 30-year terms being the most popular
When you talk about 30-year terms, you're papering over (a) people who rent instead of buying, (b), the 20% of home purchases without any mortgage, (c) mortgages for shorter terms, and (d) people who pay off early. Cherry-pick much? Then you ignore mortgage-interest deductions, make a ton of assumptions about older people's health, and treat insurance and medical costs as strictly additive without substitution effects. To top it all off, you assume substantial support for grandchildren. That's actually damn rare. Most of us manage to raise our kids to be self-sufficient and support their own kids. I'm sorry if you didn't, but that doesn't change the statistical reality.
The fact remains that salary based on need is not a thing for purposes of this discussion. There's no rational expectation that employers will, out of the goodness of their hearts, pay older workers more because they need it. The same employer who you claim have completely rigged the game and advanced bogus arguments to cheat workers out of pensions? Your argument isn't even consistent, let alone credible.
> the 20% of home purchases without any mortgage,
I found a report that 30-34% own their homes completely but thats not new purchases. Its mostly people who've owned more than 20 years
That 25 year old who was at the company since they started 3 years ago is going to know a lot more than that 40 year old who just came in yesterday.
Besides that, I did say 10+ years. The whole point is diminishing returns from experience.
With 20 years of experience, I didn't write the bugs I did 10 years earlier. I produced better architectures. I produced more readable code. I could tackle more complex problems. I could help my coworkers more.
You probably don't understand the specific business domain better. That's not the claim. But you may better/faster understand the clients you have and how to meet their needs, how to interpret their requirements, spot the gaps in what they're asking for, etc
Summary
- Expert at solving XYProblems
Not that I necessarily think that's true. Personally, I have yet to be convinced that it's possible to systematically measure developer productivity, making all of these comparisons pretty worthless except as "dorm room at 2am" type conversations.
https://www.supermoney.com/studies/mortgage-industry-study/
The closest I can find to a real source is the National Association of Realtors, which claims 88% of purchases are financed.
https://www.nar.realtor/research-and-statistics/research-rep...
The 30-34% number is probably more important, though, because paying off early also results in an immediate cost-of-living decrease - and a significant one, I can add from personal experience. ;)