Trade Group: US Software Developer Wages Fell 2% Last Year
First time accepted submitter russotto points out the claim of industry group TechAmerican Foundation (reported by Computerworld) that "wages for the software industry are falling, not rising. Wages fell 2% to $99,000 in 2012." Averages are one thing; the article points out though that wages vary vastly within the industry, and that some jobs are harder to fill (thus, better paid) than others. An excerpt: "Victor Janulaitis, CEO of Janco Associates, a research firm that also analyzes IT wage and employment trends, cited a number of reason for the decline in wages for software professionals. First, technology is becoming easier to implement without having an IT professional, he said. Also, the option of turning to outsourcing creates less pressure to increase wages.
As the recession continues, companies continue 'to look at productivity and will often look to hire individuals who are lower cost employees,' said Janulaitis. That could include displaced baby boomer workers who have been out of work for some time and 'will take a lower paying job just to get back into the workforce.'"
apparently I'm not earning enough
Also, the option of turning to outsourcing creates less pressure to increase wages
WORKER: I would like to discuss a raise to my salary
BOSS: No, you aren't getting a raise. Hell, you should be HAPPY to get what you are getting. I could get 10 guys from Infosys for what I am paying you!
"When life gives you lemons, don't make lemonade. Make life take the lemons back!" -- Cave Johnson
CEO wages only went up 3.6%.
Of course their wage base is slightly higher than us mere mortals.
There were layoffs across the industry. Personally, my wages were reduced by 100%.
From my own personal experience, you get what you pay for. Yes, you can overpay, but that is true for any employee. A few good programmers will outperform 100 mediocre "code-monkeys", and that holds true even if there are 1 or 2 good leads / architects. Why? Because a good design doesn't overcome bad code. I'll also note that there are some companies that just fill seats. The jobs here are not the kind that appeal to good programmers, unless they just want to pull a paycheck while working on something they care about. There are lots of these jobs, and most holding them are overpaid.
I personally know of several where the "programmers' don't know how to even configure their own tools, nor build their software locally (this would be on both .NET and Java platforms btw, and multiple cases for both). Sadly, these "engineers" are paid near the average, and barely can converse about basic language concepts. They've been employed for years, in some cases a decade or more, at a single company. These are the type of folks that make outsourcing seem viable, because you'll get about the same quality of people there, and sometimes, if you're lucky, better. It doesn't mean you'll succeed with either set.
The cesspool just got a check and balance.
I know we all like to be individuals but they are just playing us.
Zuckerberg and fellow tech billionaires: This is clear evidence that there's a shortage of people with the right skills, so the government needs to increase the H-1B visa quota from 65,000 to 180,000.
Politician with extended hand: Yes, sir! Are there any other orifices you'd like me to lick, sir!
Me: I have no idea how anybody will justify the first statement above and keep a straight face, but apparently there are people who are much better at it than me. Having read Zuckerberg's op-ed in WaPo, it's obvious that logic, consistency and clear exposition are not required in that endeavor.
In a world based on inequality, people in other parts of the world are worth less than other places. We have global proce for oil, etc. but not on labor. If the world needs inequality and we have laws to justify it (ethics and morals aside), we will have inequal pay. All humans should have an interest in this. In the future, we will ultimately have 2 types of people: people who have robots, and people who don't.
More H1B visas. Only then can we increase productivity and innovation which will keep profitability and CEO salaries high.
putting the 'B' in LGBTQ+
'That could include displaced baby boomer workers who have been out of work for some time and will take a lower paying job just to get back into the workforce.'
I look forward to all the offers.
"Tongue tied and twisted, just an Earth bound misfit
Here's a link to the original study. It's not clear where they are getting the "wages fell 2%" statistic, but in California, the average annual wage was $123,900.
"First they came for the slanderers and i said nothing."
Plus inflation your wages actually went down 4%.
lower cost employees ... could include displaced baby boomer workers who have been out of work for some time and 'will take a lower paying job just to get back into the workforce.'
Maybe when pigs fly. If you've been out of work for some time or are old enough to be a boomer, you'll have a hard time getting a job. Put 'em together and you're probably toast. Hiring boomers who've been out of work for a while at lower pay would be a rational and probably a desirable response (not the lower pay part, but in a market economy that's how it works). In reality employers are horribly prejudiced against such people and will just scream that we need more H-1B's.
A company I worked for in the early 2000s paid salaries that were directly determined by a survey like this. When the news was filled with people being laid off, salaries went up. When hiring seemed pretty good in 2004 or so, the averages were flat to down a little bit.
As the recession continues, ...
By what definition is the recession continuing? While, the job market has not recovered, I do believe we have been experiencing economic growth.
I agree with you, in theory. But, in order for that 10x-100x to be achieved, conditions have to be conducive. It's like starting up that 600mph car to make a record run on the salt flats. If things are right, you can achieve phenomenal results. But, things usually aren't that optimal, and in a suboptimal environment, your gifted driver will be much less able to distinguish themselves from a merely good driver.
Having watched things play out many times over a (eek) long career, I've observed that it's fairly rare that skill and opportunity coincide. If you find yourself in such a position, revel in it, as it probably will not last.
The article states outright that the category includes "computer facilities management" and "other computer related services" and mentions "IT wage and employment trends." Including so many tangentially related positions makes it hard to draw any conclusions about software development trends.
winning the day. Didn't work our so well for Corel did it? Or Novel? Or Sun?
Good enough is always good enough. Yeah, you're few good programmers will make better code, but my 100 code monkeys will make more of it. I'll have 10 products to market in the time you have 1, and I'll do it for less $. I'll take those savings and spend them winning bids in backroom deals. Eventually I'll buy up your company just to shut it down. Well, not unless Microsoft beats me to it.
Also, What's with this thing in America where we always, always blame the worker? Did it ever occur to you that you really can't compete in a global race to the bottom? Like clean air & water? Like health care? A steady food supply? Too bad. Somewhere in the world is a worker willing to live without it. You'll have to give up those 'luxuries' to compete.
As the saying goes: If you're so smart, why aren't you rich?
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In other news, 95% of the human male population is sure of their penis length to be below average...
also a real apprenticeship system with mixed classroom / on the job training can come from a union and or guild system.
and a union hall hiring system can help to cut out at least some of the recruiter BS.
We've always been at war with Eastasia. As long as the news media keeps telling Americans there's a 'recession' we won't start asking why we're not getting anywhere. I swear, Americans have the opposite of an entitlement complex. We don't believe we deserve anything.
The only thing we're 100% sure of is that somewhere is a minimum wage welfare queen that's the reason why we're broke all the time. Buddy of mine put it best after he was down on his luck and tried to get some help from the gov't: "If it's so easy to get on welfare and cheat the system why don't you do it?"
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
Sunday afternoon. Just after a few major Whitehouse scandals and some general nastiness in the form of an armature terrorist attack and a kidnapper. This won't even slow down the call for more H1-Bs, despite the fact that we're told over and over that a worker shortage should _raise_ wages.
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
For what it's worth read my sig :P. Moreover, I my point still stands. I can afford 10, maybe 20 failures for the 1 project that succeeds :).
Hi! I make Firefox Plug-ins. Check 'em out @ https://addons.mozilla.org/en-US/firefox/addon/youtube-mp3-podcaster/
They're often about acting as an obsequious, obeident slave and saying the right things to the right people.
What could be more ludicrious than thinking that the "skills shortage" will be solved by
inexperienced, non-english speaking people from non-technical countries?
Historians will laugh their asses off at that one.
Porn is too expensive because of the porn monopolies! And porn is the basis of the American economy! And Slashdort is powered by porn, as is most of the internet! We need a nuclear internet to free our planet from the evil death grip of my hand while watching porn!
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This seems like good evidence there is no shortage of high-tech workers and the H-1B program is completely unnecessary.
The U.S. economy hasn't been in a state of recession since June 2009.
I don't doubt it's true. Over the last 5 years or so, I've seen the purchasing power of my wages steadily eroding, even with a salary increase in every year except this one. The excuse given this year was "you are too close to the top of your salary range" - yep, the salary range that was established in 2002, and not adjusted for inflation, or for any other reason. In the four years prior, the maximum increase was a little more than 2%, which was quickly consumed (and then some) by increases in the employee portion of our heath care premiums.
That being said, I'm generally happy with the lifestyle my salary can purchase, and I'm not looking to make a move to another employer. Nor am I particularly well-positioned to do so - I'm old enough that I intend to exit the industry in less than 10 years, and there's certainly no lack of younger developers who would work for less. The value my employer gets from me is from some niche skills and knowledge that would not necessarily be very marketable elsewhere. I've kept my skills current, but that's not where the real value comes from - it comes from intimate knowledge of our business, products, and industry.
I'm fairly content, but I have a lot of sympathy for people who have recently started careers in software development, or who are planning to. It ain't all it's cracked up to be.
it's taking all our cron jobs!
Just not for you and me. :P. For a small project like mine it's just myself really, but it does give me a sense of what goes into keeping a software project running. In small companies a few net negative guys will wreak the company, but in larger companies it's just sunk costs. You absorb it from the profits on other projects. In most things (like building bridges) you can't do that, but software's got such a low cost to begin with you can have a lot of failure before it matters. Look at the XBox 1. 4 billion down the hole, but they made it back on the 360 when Sony stumbled a bit.
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For a lot of WWII the Feds (mostly) had to fight to get some employers and other unions to let in female and black workers.
fuck, what the hell, do they have to cut down from three cars to two?
"technology is becoming easier to implement without having an IT professional, he said. Also, the option of turning to outsourcing creates less pressure to increase wages"
Such analysis dreamed up by delusional management everywhere, how to get rid of their own IT staff and since they don't understand IT, it must be easy !
AccountKiller
Because economics which says wages rise when there is s shortage of labor and falls when their is a surplus is for the Little People ; when you're a multi-national, Special Reverse Economics are applied.
Hello Gretting to the family Omar bah
more jobs are being filled outside of silicon valley. there is a definite upsurge in hiring the past few years, and most notably several of them are outside of the "sunshine" state. you could not pay me enough to move there, taxes, traffic, and high cost of living - no thanks. i enjoy not having an income tax, nice roads, and a 17 mile commute that takes no more than 20 minutes in either direction.
Treehuggers in the Pacific Northwest used to say "Stumps don' t lie".
Big business whining did not make the clear cut disappear. The signal remained for all to see.
Tell me again why I need a higher H1-B quota raise?
What you are actually seeing is that the job market for developers is so large and the available developers are so few that companies are hiring more developers from outside the skill set. Well, when they hire outside the skill set, they are going to pay lower wages.
Experienced Developers = Salary Increased for these developers and positions
Non-Experienced Developers = Lower salary
If you add also that Graphic Designers who work with HTML and CSS are now being called "Front End Developers" and added to the Software Developer pool, and graphic artists have historically been paid pretty low, you realize the fallacy of this data.
1. They're hiring H1-B visa holders at 50% of what you're getting.
2. They're finally hiring moderate-term unemployed (long term unemployed still aren't being hired) at 60% or 67% of what you're getting.
3. ROI, baby. I mean the company's got to show increasing profits every year; good isn't good enough, and the CEO and other major shareholders are just barely getting by at $15M/yr, plus options and bonuses, you need to take less away from them.
4. You don't believe in unions....
mark
Yes. It is.