That last sentence, do you mean internal employees are paid less than new hires due to rising starting salaries? Or that new hires are paid little compared to long time employees?
Don't work in FAANG but have worked (and work) for semi-global and global tech companies: it's always the case that new hires 2 years later get a higher starting salary than most of the seasoned staff.
I don't understand why tech companies keep doing this but it's a constant in my life, you get hired with a pretty decent salary, 2 years down the line and with a lot more subject matter knowledge and your salary is now lower than the new hire on the same level as you. It just creates churn, my previous employer was so guilty of this that employees started an anonymous spreadsheet for people to input: current level, years in the company, current salary. With that we concluded that it was a general practice that new people were being paid more than experienced ones, it got to a point where the company had to give raises across the board to level up salaries, I got a retroactive 15% raise after I had put my notice already.
It is a shitshow, it alienates and punishes people like me, that really don't enjoy jumping jobs every 2 years just to get a raise, I like to get expertise until I become comfortable with my work environment and subject matter knowledge, that's when I'm most productive.
This exactly. It’s an ongoing internal debate for me and a conversation with my significant other who is in the same industry.
If I wanted to stay somewhere for 5 years or more, I have to deal with a massive pay cut at the 4 year mark (equity cliff).
Then I have to be okay with getting paid much less than new hires being brought in to do the same work as me. Of course I have more internal org knowledge and subject matter expertise which should warrant comp being equalized accordingly.
Even though I like my team and work, I just can’t reconcile letting my pay lag behind the market for too long before I’m >50% behind what I should be making.
When it comes down to it, the only tangible item I have to exchange for my time and brain power is money.
piva00|4 years ago
I don't understand why tech companies keep doing this but it's a constant in my life, you get hired with a pretty decent salary, 2 years down the line and with a lot more subject matter knowledge and your salary is now lower than the new hire on the same level as you. It just creates churn, my previous employer was so guilty of this that employees started an anonymous spreadsheet for people to input: current level, years in the company, current salary. With that we concluded that it was a general practice that new people were being paid more than experienced ones, it got to a point where the company had to give raises across the board to level up salaries, I got a retroactive 15% raise after I had put my notice already.
It is a shitshow, it alienates and punishes people like me, that really don't enjoy jumping jobs every 2 years just to get a raise, I like to get expertise until I become comfortable with my work environment and subject matter knowledge, that's when I'm most productive.
allthecybers|4 years ago
If I wanted to stay somewhere for 5 years or more, I have to deal with a massive pay cut at the 4 year mark (equity cliff).
Then I have to be okay with getting paid much less than new hires being brought in to do the same work as me. Of course I have more internal org knowledge and subject matter expertise which should warrant comp being equalized accordingly.
Even though I like my team and work, I just can’t reconcile letting my pay lag behind the market for too long before I’m >50% behind what I should be making.
When it comes down to it, the only tangible item I have to exchange for my time and brain power is money.