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Talent War in Silicon Valley Demands High Salary (axios.com)

Posted by msmash on from the money-power dept.

An anonymous reader writes: Employees at Google's parent company Alphabet earned "a median pay package of more than $197,000" in 2017, around 18% lower than Facebook's median salary of $240,000, the Wall Street Journal reports. Per the Journal, this illustrates the competitive "talent war in Silicon Valley, where talented engineers are in limited supply." These two salaries were more than $100,000 above Amazon's median pay, which sat at $28,446. The median price for a home in Silicon Valley is upwards of $1 million, in Seattle the median home price is just under $800,000.

11 of 189 comments (clear)

  1. Median Salary by Talderas · · Score: 4, Insightful

    There's nothing valuable or sane about comparing Amazon's median salary to that of Facebook or Alphabet. When either of the latter two start employing thousands of low wage workers you'll see their median salary plummet to Amazon levels.

    But hey, I guess we can't expect the Wall Street Journal to apply basic critical thinking skills.

    --
    "Lack of speed can be overcome. In the worst case by patience." --Znork
    1. Re:Median Salary by kenh · · Score: 4, Insightful

      I'd be curious to see Amazon's median salary minus the warehouse workers. They compared two marketing/advertising giants with a retail enterprise, and we're supposed to feel bad that Amazon's tens of thousands of warehouse workers don't earn a quarter-million dollars/year like top-talent programmers and technology specialists?

      Puh-leeze.

      --
      Ken
    2. Re: Median Salary by phantomfive · · Score: 3, Interesting

      That is a rather ignorant way of looking at things. Inflation is caused by printing too much money. The federal reserve is largely in control of inflation, and can usually get as much or as little as they want. Inflation is not controlled by either the maximum or minimum wage. For more information on this topic, look up the monetary equation mv=pq. Raising the minimum wage doesn't affect inflation, but it increases unemployment as some businesses won't be able to afford the new higher wages, and will hire fewer people. The labor pool has its own supply demand curve. Again, if you don't understand why it is called a curve, please don't waste your time arguing. To really understand this topic well it would be helpful to get a good economics book.

      --
      "First they came for the slanderers and i said nothing."
    3. Re: Median Salary by ranton · · Score: 3, Informative

      You are oversimplifying a bit:

      I didn't, I gave the full equation, mv=pq. If you don't understand it, you should go look it up right now.

      His point is that mv=pq is a very simplified equation which makes numerous false assumptions. It is good for a ECON 101 class to explain the basics, but it doesn't cover the entirety of what affects the CPI. Some basic problems with the equation include:

      M = Money Supply -> This is a very complex topic as there are many forms of money supply with very different characteristics, such as liquidity. This is one way wages enter into inflation figures, because more liquid forms of money supply in the hands of people who spend most of their money on goods and services (such as minimum wage workers) have a higher effect on inflation.

      V = Velocity -> In this equation V is not well defined. I'm not going to write a paper about it on Slashdot, but you can read this for a little more info.

      P = Price of Goods and Services -> This equation also doesn't take into account how inflation can hit different types of goods and services very differently. The type of Money Supply has a strong effect on this.

      I was going to type more but have a meeting to get to. I'm not saying that MV=PQ is a meaningless equation, it just doesn't encompass all economic theory on inflationary pressures. Think of it as F=MA before Einstein and quantum mechanics.

      --
      -- All that is necessary for the triumph of evil is that good men do nothing. -- Edmund Burke
  2. Might be time to leave... by Austerity+Empowers · · Score: 5, Insightful

    ...the sillycon valley. It's always going to be the center of tech, but there's a large hunk of america that costs a tiny fraction where anyone can live like a king on $100k/yr.

    It's a nice place, I spent the past week there, but I am glad to have left too. Paying 33% more in gas, 50% more in food, 30% more in groceries and the crowding and density didn't really endear it to me. To get an equivalent size house there to what I own would have cost almost 20x the price, and I know damn well I'm not going to get 20x the salary.

    I'm just not convinced that in the digital era that the silicon valley created that we all need to pile in there anymore. Video conferencing works well, email works well, networks work well. Let's spread out some.

    1. Re:Might be time to leave... by AmiMoJo · · Score: 5, Interesting

      People have realized that if they go and earn big bucks for a few years and then bail to somewhere cheaper, that mega salary will help them get above the going rate anywhere. Recruiters don't look at a $200k salary and think "oh but that was Silicon Valley, this person will take $50k out here and maintain the same lifestyle", they think "well I had better offer at least 100k to get someone like that!"

      --
      const int one = 65536; (Silvermoon, Texture.cs)
      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    2. Re:Might be time to leave... by DigiShaman · · Score: 3, Interesting

      San Francisco is basically one big-ass-giant "college campus" for the young to start their careers. It's not a place to raise a family in your 40s. That city entire MO is to constantly churn the young along. You go in, get experience, and then GTFO! It's pure insanity to think SF is to be a city for life living experience; you'll end up in the poorhouse after being kicked to the curb for your old age.

      --
      Life is not for the lazy.
    3. Re: Might be time to leave... by Anonymous Coward · · Score: 4, Insightful

      Not really. Years ago I worked in the Midwest and weâ(TM)d laugh at the people coming from California demanding similar inflated salaries.

  3. Re:Outsource it all by Drethon · · Score: 5, Insightful

    Outsource it all to Africa as even India’s too expensive now.

    Outsource it to pretty much any state east of California, it is still going to be cheaper than hiring someone local.

  4. The "Golden Handcuffs". . . . by Salgak1 · · Score: 4, Interesting

    And that's the flip side of it: The so-called "Golden Handcuffs". We have it, to a lesser extent, in Metro DC as well. The pay is significantly higher, and you adjust your lifestyle to it. And then. . . .companies outside "the bubble" cannot offer that level, even if the cost of living is low enough that it's a defacto lifestyle IMPROVEMENT. . .

  5. Re:Outsource it all by cascadingstylesheet · · Score: 5, Insightful

    Outsource it all to Africa as even India’s too expensive now.

    Outsource it to pretty much any state east of California, it is still going to be cheaper than hiring someone local.

    But, but, those people east of California might occasionally think unapproved thoughts!