Not only that, but tech seems to be one of those weird fields where the fresh junior hire makes about as much money as (or more than) the person with 20 or 40 years experience. If anything, switching IN to tech is probably a good short-term decision financially, but staying in it is of dubious value.
I got out of software engineering after about 10 years, in large part because of the compensation ceiling, thinking project management or product management would have a better career trajectory, and boy was I wrong. The ceiling is present throughout tech unless you're a senior or C-level exec.
I have a software team of around 100 people. I approve the comp planning for the org and I don't see what you describe in the dataset that I have in front of me. (I know that's only an N or 1 [or 100].)
Our squad leads make more than junior engineers. Our senior engineers make more than junior engineers. It's not a factor of 3 like in some other industries, but it's also on a much higher initial base.
If "making 3x more than the new college hire" is your primary goal, software engineering might not be for you.
If "making a crapload of money at a job that's so good I'd do it for free anyway, and having little to worry about financial security" is your primary goal, software engineering is gig that's tough to beat, IMO.
20 or 40 years of experience? I'll pay those two people the exact same (on average). Tech changes quickly enough that general software experience matters, but no one has 40 years of experience in .Net, JVM, or Javascript. I think that general software experience plateaus around 15 years or so, so I don't see much of a reason to think the employee with 20 or 40 years of experience is in any way more valuable than the employee with 15 years of experience. If they aren't any more valuable, they haven't earned the right to any greater comp, IMO. They drift upwards with inflation and the general market, just like everyone else.
Wow, thanks for your honesty and sharing your team's numbers. They match up with my "gut feeling" about what happens with tech industry compensation: Steep ramp up from zero to ~5 years, much less so for the next 10, then pretty much plateau. I wonder if the way we [don't] reward experience in the software industry contributes to the "shortage of engineers" perception that keeps coming up in related discussions.
> I wonder if the way we [don't] reward experience in the software industry contributes to the "shortage of engineers" perception that keeps coming up in related discussions.
Probably not. As an industry, we simply don't have many people who have 20-40
years of experience, because 20-40 years ago the field wasn't that big.
We're yet to learn how to put a proper price on experience once we have enough
experienced programmers for everybody to see how much better than the
youngsters crowd they are (or are not) and when the job market starts to
demand them (if this ever happens).
I got out of software engineering after about 10 years, in large part because of the compensation ceiling, thinking project management or product management would have a better career trajectory, and boy was I wrong. The ceiling is present throughout tech unless you're a senior or C-level exec.