Drive by Daniel Pink
But the unicorns definitely pay if you're above a certain experience level - and if you build the correct professional network you can basically demand it.
no. The rest knows that they can pay 0.3-0.5X to hire the rest of the engineers. C people hire C people and there are always more than enough C people around. Our BigCo has no talent shortage for example(we'll even be cutting 5-10% in the next few months - just fat trimming, the company has no financial issues forcing to do it), and i have hard time imagining what would a FAANG level engineer would be doing around here - try to imagine a Stanford CS MS grad with the thesis in deep learning helping a huge enterprise customer through 6 stages of grief during the escalation call :)
The overall stagnation is only overall. Inside the tech salaries distribution there is a structural change of it becoming strongly bi-modal. So there is very high competition for talent and very high salaries (Google L5/6/7 medians being like 550/650/750 with the rest of FAANG being similar) at the high segment, and the rest just happily chugging along with 2% yearly CPI increase at best which actually means slowly sliding downhill instead of mere stagnation.
A much better statistic would be to break things down by specialization, seniority, and whether or not a person had a stint at FAANG (which, and this will be deliberately misinterpreted, is a proxy for not completely sucking as an engineer). It's plausible that things have stagnated or gone down in the lower-skill segments with over-saturated labor supply. But anecdotally, on the higher end and in the segment where the talent is relatively scarce, I've never seen it better than it is now.
It's even more straightforward than that; tech salaries, like real estate prices, are heavily influenced by interest rates.
Just as the Bay Area and New York have real estate markets that are outliers of the rest of the country, so are the salaries outliers for the rest of our industry.
The report covers the industry as a whole, and demand for developers is growing just about everywhere. The questions the report raises can't be answered solely through the lens of Silicon Valley.
There is a lot of evidence that wages aren't rising across the entire economy, even with a tight labor market. I don't know of anyone that has proposed a solid economic theory for why that is, but it looks like our industry is only part of a larger trend.
If you mix all of those roles into the same bucket for this survey, it makes the average salary number somewhat useless. Not to mention that geography plays a big role.
I have a pretty good pulse on B2B software sales comp data (because that's my job), but I know nothing about how marketers or engineers or FAANG pay. It's like trying to make a generalization about "Finance" but then putting together a compensation survey that takes in the M&A rainmakers at Goldman Sachs in with retail tellers at Bank of America and gives you an average. Pointless.
2) The general wisdom if you want to get financially well-off is what you describe. Those who'd prefer to risk it all for a shot at being filthy rich do startups.
Everyone ELSE on this thread needs to learn how to manage their finances. $93k in Seattle is $65k after taxes, call it $50k after putting $15k a year into your retirement plan.
Remainder: $4100 a month post-tax
You can rent a small apartment within 30-60 minutes of downtown for $1500 a month, leaving $2600 for utilities, groceries, entertainment, etc. That's a good $50 a day left over for food and entertainment, easily.
I'd call that comfortable, personally. That said, I wouldn't take an offer in Seattle for less than $200k and I wouldn't take an offer in Silicon Valley for (SeattlePay+$12,000)/0.9 because of the higher rent and state income tax
Lastly, if you have a family of 4, there is a Federal Child Tax Credit of $2000 per child, your standard deduction goes up significantly if you're married and head of household and the lower tax brackets cover a larger portion of your income. So the overall tax burden is much, much less than a single guy making 100k a year.
I did a quick calculation and figured someone making 93k a year in Iowa would be taking home $1,332 a week with 4 allowances. That's 5300/mo - 1200 for insurance (Which seems nuts unless your employer doesn't have good plans), and $1000 for housing, and 1000 for food and 500 for transportation/misc bills, that leaves $1600 a month extra. I wouldn't say that's rich but it is comfortable and even enough to save a for retirement.
Insurance is provided. BTW, we also add on a bit more for a 401K, in addition to whatever you might choose to contribute.
I don't know what you'd want for a home, and I don't know your credit score, but throwing some numbers into a mortgage calculator for 30-year mortgages gives me: You could pay $1250/month on a home that is 7 minutes from work, on 1.16 acres, going for $275,000. If you don't mind an older house, one on 1.3 acres (like a football field) is 11 minutes away and is selling for $320,000. That looks like $1455/month, which is almost what you propose. This might be excessive for you though; a smaller piece of land can be had for half that price unless it has a new McMansion or a waterfront.
So I think it's more realistic that housing would consume 1/6 of your wages.
Note also the lack of a state income tax. Fuel is half the price you'd pay in California.
Ah, so she's providing service equivalent to $100k
Even the maximum possible out-of-pocket expense is well below $15K/year. Getting to that point would require major surgery.
> Almost every state has multiple Medicaid programs. But, as a good rule of thumb, if you make less than 100% to 200% of the federal poverty level (FPL) and are pregnant, elderly, disabled, a parent/caretaker or a child, there’s likely a program for you. And if you make less than 133% of the FPL, there’s possibly a program for you, depending on whether your state expanded under Obamacare.
It’s always relative, and for those that go to target schools and have lucrative careers, and their network is full of others in a similar boat, then they will be competing with that level of income.