I’m at a work retreat in the mountains, playing volleyball and declining expensive wine (okay, okay, I’m hiding in the bathroom) and trying to figure out: why are many tech jobs a lot more flexible and generous about vacation time and concerned-with-making-you-feel-valued-as-an-employee than other highly-in-demand jobs?
I used to think that this was a basic supply-and-demand model: there’s lots of demand for tech talent, so companies have no choice but to accommodate whatever workers want, and workers want (in addition to lots of money) flexible hours, good benefits, catered meals, expensive wine, work retreats, etc., so companies that don’t offer those can’t retain any talent.
Because I had this model, I figured that all we needed was to make work more optional (via a UBI or similar) so that there was lots of demand for all talent and McDonalds would grab you the minute you came in the door for an interview and tell you about their unlimited paid vacation and flexible hours and support for your continuing education and $5/month healthcare deductibles and call you an hour later to ask if you had any questions about the job they could answer for you, because they were really eager to have you on their team.
But people pointed out to me that other jobs where there’s lots of demand aren’t like this. There’s lots of demand for nurses but I’ve never heard my nurse friends talk about their company providing them with catered meals. Top tier law and finance both pay really well, but have hellishly stressful hours and don’t seem to have the benefits popular in Silicon Valley either.
So I think it’s driven by another factor. To overgeneralize:
It’s really easy to leave tech jobs and costly for the company to lose employees. This isn’t true in law or finance, I don’t think; you don’t have the same tradition of frequently changing jobs to get a higher salary or a cooler project to work on, and I think if you’ve quit a couple law jobs it’s hard to find another in the same pay range. In tech, one year is not a short duration to stay at a job, and three is positive longevity. You will not lose career capital or look like a bad bet if you change jobs every two years. At the same time, it’s pretty costly to companies to lose tech employees, because they are hard to hire and it takes a long time to ramp them up. That makes companies work a lot harder to retain employees.
This seems like a thing where there are two equilibriums, one good for employers and one good for employees. In the good-for-employers equilibrium, everyone knows that employees are expected to stay for five years minimum at each job. Any employee who doesn’t do that is probably unusual in some way, and so maybe a worse bet to hire. Therefore, employees stay even if they don’t love their job, unless they’re pretty much ready to quit the industry, and companies know it and don’t have to work as hard to keep the job appealing.
In the good-for-employees equilibrium, everyone knows that employees will jump ship as often as they see fit, and that their next employer won’t hold it against them. So companies can try to filter via resumes for employees who will stick around, but they aren’t going to be able to improve retention much that way and they’ll be screening out a lot of the talent in their industry. And they know that if they are a bad work environment, people will leave, and so they work pretty hard.
(I think nursing has high socially-accepted turnover but has lower ramp-up time than tech, so employers don’t perceive this turnover as costly and don’t do as much to decrease it.)
Both of these equilibriums seem pretty self-sustaining. I wonder if there are good prospects for workers-advocacy work to focus on shoving industries from the employer-friendly one to the employee-friendly one.
This is a really interesting question. Why are tech jobs so cushy compared to many other high-paying jobs like law and finance?
Suppose we do have these two equilibriums, the good-for-employers one where people have to stay at a job for a long time, and the good-for-employees one where employees can switch jobs a lot. I don’t think this actually goes far enough at explaining the differences. It predicts that law firms won’t have the same cushy benefits as tech jobs, but it also predicts that law firms won’t pay as well--if people can’t afford to quit, they will accept lower salaries.
I would add that it’s common knowledge in the tech industry (note that common knowledge does not necessarily mean true) that companies don’t give out enough raises, so employees have to frequently switch jobs to get fair raises. But that isn’t particularly true in law or finance as far as I know. Shouldn’t it be the opposite? If you can easily switch jobs, employers will want to give you lots of raises to incentivize you to stay. And if switching jobs is hard, companies don’t need to give big raises because they know you won’t leave anyway.