Product Design & Development

Silicon Valley’s Low Down, Dirty Shame

By David Mantey, Editor, PD&D
Tuesday, January 31, 2012

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David Mantey, Editor, PD&D

As cogs, we pride ourselves upon how our hard work betters the machine. We hope to stand out in the company, so when the time comes available for advancement, be it by recommendation, brute force, or somewhere in between, we are recognized by our current company… or a competitor that’s willing to pay a little more for our services.

The thought of poaching is fleeting as most of us must be proactive if we seek forward advancement, but in the rare event that we are suddenly in demand, the headhunters come calling with promises to swoop us off to a land of greater pay, better benefits, and more respect. If you find yourself in this situation, please pause for pinching because such examples in our current economic state are only popular in REM and Silicon Valley.

Culturally, we’ve dropped to such a base level of petty professional infighting that we somehow manage to overlook another worker’s plight during massive collusion with one simple response, “You think you have it bad?”

With our growing emphasis on the suck (see also: blue bird of joblessness and/or lack of middle-class American jobs), we need a bit more of a rally behind wronged professions other than a simple, “Welcome to the club.”

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The furor stems from news out of a federal court in San Jose, which states that senior executives at Google, Intel, Adobe Systems, Intuit, Lucasfilm, Pixar, and Apple are accused of reaching a gentleman’s agreement to not poach one-another’s best programmers. Collectively, we sigh. It’s hard enough to blast through the glass ceiling, let alone blast through it when the strongest of the technological powerhouses are reinforcing the beams supporting it.

According to the lawsuit, the companies were able to keep wages artificially low by preventing rivals from flashing fistfuls of sweaty cash in front of each other’s best employees. We have yet to hear about any collusive actions against the incompetent.

For workers in merit-based pay structures, the competitor is one of few options remaining if compensation is dubbed less than satisfactory. By adhering to this agreement, programmers were frozen out of potential opportunities, and left to wade around within their current company’s pay structure. Quick, someone start shouting about capitalist America and the oppressed worker’s duty to go out on a limb, create a startup, and prove his/her competency.

Attorneys for the companies argue that the plaintiffs show no evidence of conspiracy, even though the plaintiffs produced an email thread (one of many) that shows Google’s Eric Schmidt preventing the recruitment of Apple employees at the behest of Steve Jobs. According to the thread, the Apple poacher was to be fired within the hour.

The many cited emails, however entertaining they may be, are reprehensible.

Perhaps an uproar isn’t warranted. I understand how it can be difficult to argue for mid-level tech workers who earn $110,000 annual salaries. But at a base level, isn’t total earnings why we continue to self-improve? Don’t we put ourselves through ongoing education, 60-hour workweeks, and the many other manners of professional improvement so that we can reap the benefits of professional advancement? Money talks.

If your current position isn’t in such high demand, I feel for you. I wouldn’t be surprised if “business-to-business editor headhunter” popped the oxymoron definition after a simple Google search, but this cannot prevent us from fighting against the unjust treatment of the currently employed.

What’s your take? Email david.mantey@advantagemedia.com.

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4 Comments

  • Cartelization is an emergent phenomenon.
    http://www.technologyreview.com/blog/arxiv/27512/?p1=blogs

  • Understand Google and Apple need low cost programmers since they are in an emerging market. However, these companies are short sighted to artificially hold down wage. For this exact reason, the next generation of college graduates are not joining the tech world when they compare wage of a top programmers at Google to Wall Street wage. All your best skills will be working at wall street. You are left with second class programmers. Wage goes up again. You have to use more manipulation to hold down wage. Is a temporary gain. Hence there are antitrust laws against that.
    As for all those who don’t care, understand, if the top wage earner got their wage reduced, you at the mid or bottom gets the equal treatment. For society as a whole, less wage = less consumer = less jobs. Is not just more money at the top that drives economy. Economy is a full circle. Less consumer is less people to buy innovations, and that means less innovation. Look at history, and you will see money at the bottom have huge impact on societal progress. Look at any African countries. Plenty of money at the top. Do they have an energetic economy? Or North Korea as an example of rich at the very top. Now China just got infusion of money for the common workers. US companies are leaving the state to start oversea because that is where the action is at. So why pay so little wage when is wage that drives consumer? Again, that is short term gain. Also, high wage is gain for society instead of the individual company. Selfish behavior.

  • The agreement was not to proactively persue competitive talent, but DID NOT prevent the competition from offering positions when individuals came to them, with resumes in hand. This such "agreement" is common. Happens in my industry. It just means that if you feel you are not compensated enough, you go out and represent yourself, and submit a resume. I don't see the big deal, and think that this is also a "healthy" arrangement. Helps to keep costs in line. It does not restrict an individual's compensation, just that each individual has to represent themself.

  • Huh??? The fact that the upper management of SV companies have declared detente in the war over talent is a problem? So the companies don't actively recruit from each other...what is preventing top talent from shopping their own skills? Spolied. Spoiled. Spoiled.

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