A topic startup founders are hesitant to tak about in public:
Ways remote made belonging for many startup employees plummet, motivation is down, and the work ethic has dropped for so many people, dramatically.
No one wants to be called “anti-remote”. But all the above sting.
Quotes from founders:
“Most people are incredibly disengaged vs before, and I have tried lots of things to change this.”
“Some people took a second job on the side… I never expected this.”
“People are great at interviewing, excel during the trial, then their output plummets.”
A founder in central EU is more direct:
“It really stings how the local culture and remote work ethic don’t mix. Many people frankly optimise for working 3-4 hours/day and “abuse” remote. We’re starting to hire in the UK for 30-40% more as we don’t see this attitude there.”
Taking with engineers, a few confessions:
“I work at FAANG. The office is 5 minutes away, and I admit I don’t want to go in. I like my routine and work ~4 hours per day. I want to keep this up for as long as I can.”
“I do two gigs because I can pull it off, and make 2x.”
Another founder:
“The people in the startup who were motivated in-person are mostly not motivated in this full-remote setting. I find sparking motivation incredibly difficult in a remote setting.
Our solution will be to pay more for those who come to the office 2-3x per week.”
Another observation:
“The truth is, there is a subset of engineers who are incredibly productive in full-remote settings. Many of these now work full remote for eg Big Tech and other high-paying full remote places we can’t compete with.
Or they eventually leave there.”
In-office and full-remote are two ends of the spectrum, and companies will spread out between these. We’ll see successes everywhere, and different challenges at each setting.
Eg in-office: FAR easier to onboard juniors. Full-remote: FAR easier to hire senior, world-class talent.
I am hearing several hands-on founders admit they let new hires go a lot more frequently.
We’re taking people who seem to only be productive when pairing with all the time, after having onboarded. Left on their own, their output drops with no explanation (eg circumstances).
COVID has clearly been a massive “win” for remote work. The # of *truly* full-remote companies will 10x/100x because of it.
But not all companies, founders, or employees want full-remote, and many will sway back to in-person rituals as the pandemic eases.
A view worth knowing.
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The tech job market has never been more polarized:
Demand for senior tech workers has never been higher, compensation is hitting all-time highs, globally.
New grad and junior folks have never had such a hard time getting that first job.
A thread on what's happening and why:
1. The job market is on fire for people with experience.
COVID was the trigger, but remote is no the only reason. There's around 6 different root causes all hitting at the same time.
The result? In 12 months, compensation for senior engineers and eng managers is up ~30%.
2. All of the market is moving up. In the US, senior engineers are offered ~$500K/yr at the top of the market. In UK, seniors can get ~£200K/yr, in EU ~€175K/yr. Working full remote, $150-200K/yr is possible, globally with top-of-market startups.
Here are the 5 most "impactful" and 5 most-read blog articles on The Pragmatic Engineer blog in 2021.
Though my focus has shifted to the newsletter starting late August, I still cross-post some newsletter issues that are free for all subscribers.
The list:
The 5 most "impactful" ones:
1. The Trimodal Nature of Software Engineering Salaries (152K views)
This post resulted in companies re-evaluating how they think about compensation & many engineers realizing there’s a “hidden range” of sw eng compensation.
“I’m a senior engineer and got an offer from a FinTech unicorn. The salary is higher than what I make and I heard good things about the eng culture.
BUT.
There’s no equity.
I’m conflicted if I should take it. What is your take?”
Ok, you know my thoughts on equity. But:
1. The best startups/scaleups offer meaningful equity to employee, especially engineers on top of a solid salary. Period. (More on equity: blog.pragmaticengineer.com/equity-for-sof…)
So this place is not top of market in this sense. However, this doesn’t mean you should ignore them:
2. Where are you right now? And why are your options?
Ask yourself these:
a) Do they pay more to what I make?
b) Would I learn more to what I learn now?
c) Are the people and challenges exciting?
d) Is this my best offer?
If the answer is “yes” to 3 out of 4, don’t ignore them.
Do you have leftover budget for the year that you can expense for learning & development / professional development / training, as someone working in tech?
Here are four recommendations to spend it in ways that can help your learning you the next year:
1. Buy a book or two! I find them to be one of the best investments.
Here are more than 100 recommendations for those working in tech.
"I just got a 12% raise at my company as part of the regular pay adjustment. It's because my director noticed someone in the same role made this much more than I do."
A real story, and a common one. Let me tell you how compensation and open salaries at Netflix work in practice:
1. Pay. Netflix pays top of the market... in cash. No equity (although you can ask for it). No bonuses. Just cash. A LOT of it.
How much? As much as competitors (Google, Meta, Amazon) etc pay and they move upwards with them when needed.
2. (Kind of) open compensation. Everyone who is at director or above at Netflix can see the compensation of *every* other Netflix employee - upwards as well. It's all cash, so they see one (big) number.
We're talking 1,000+ people. Unheard of at any other similar size company.
“As someone working in tech, how can I get into angel investing?”
I’ve made ~10 angel investments the past months and here’s how I went about it (thread)
1. Big tech alumni. After I quit Uber I got invited to the Uber alumni investment club. Huh? So apparently these exist
1. (Cont’d) Facebook has one, Uber has one, and a bunch of other companies (even smaller ones). They’re places you can see deals come in, and put in from very small checks.
Granted this was lucky, but seeing dozens of pitches over months was helpful in learning on the side.
2. Help founders/startups without expectations.
My first investment came well after I talked with a founder from my network, offering advice, help and feedback as it was an area I was experienced in. When they later raised, I offered to join in, and it made perfect sense.