Developer Compensation: The New Reality?
The compensation plans we have been designing for our later stage software clients have become increasingly light on employee retention and incentive features, such as stock option grants. The trend is an inexorable one, best explained by one client as follows: "Software engineering has evolved from being highly prized to being just another skill set, and compensation has been adjusted accordingly."
In contrast to emerging industries like clean tech and biotech, the skills needed to scale a software business are widely available in many parts of the world. Recruiting employees is no longer driven by the need to attract specialists from a scarce candidate pool; now, it is largely driven by cost. (This is not great news for Canada, once the near-shoring alternative for the US, unless our dollar take a tumble).
Where does that leave employees? One HR professional summed it up: "Software developers are in the same position as automotive industry workers 20 years ago. They are frustrated that their skills no longer garner a premium, yet hamstrung by few options currently available."
In this new software reality, how SHOULD compensation schemes incent software employees? We're working on it.
In contrast to emerging industries like clean tech and biotech, the skills needed to scale a software business are widely available in many parts of the world. Recruiting employees is no longer driven by the need to attract specialists from a scarce candidate pool; now, it is largely driven by cost. (This is not great news for Canada, once the near-shoring alternative for the US, unless our dollar take a tumble).
Where does that leave employees? One HR professional summed it up: "Software developers are in the same position as automotive industry workers 20 years ago. They are frustrated that their skills no longer garner a premium, yet hamstrung by few options currently available."
In this new software reality, how SHOULD compensation schemes incent software employees? We're working on it.
posted by Suzanne Dingwall Williams at
4:39 PM
5 Comments:
I think you vastly underestimate the skillset of advanced software developers. I think this thinking will be the downfall of many startups.
To be clear: I'm reporting a trend here, not making an assessment among later stage companies, NOT start-ups.
Don't confuse quantity for quality. In my experience, the pool of quality candidates is very small. Sure, you can walk into any Starbucks and drag out 5-10 "developers" who'll build some software for you, but you aren't likely to be pleased with the results.
The world is often termed as a global village nowadays. We cannot ignore the instrumental role of IT companies in making the world what it is today. In fact the information and communication technology has completely overhauled the face of the world. Apart from other things the spurt of software companies even led to the rise of standard of living of many people who work for them. If you are looking to work for a software development company try and master one of these technological languages such as .Net, Java or Php. http://www.infysolutions.com
Great blog!
Thanks for sharing.
Tenax Technologies is a Belarussian software company delivering complex web solutions. We provide comprehensive Java development of complex internet systems.
Post a Comment
Subscribe to Post Comments [Atom]
Links to this post:
Create a Link
<< Home