Salary Discrepancies: Why Do Some Scientists Earn So Much More?
The speaker discusses a LinkedIn article from a scientist earning $110,000 annually who questioned why others in similar roles can make hundreds of thousands, even millions, particularly those at companies like Meta. This prompted a discussion about the factors influencing salary, primarily focusing on company size and impact.
The Role of the Company
The speaker believes that the company you work for is the primary determinant of your salary, not necessarily your individual ability. A person with average skills can thrive in a large company, while a highly skilled individual might be underpaid in a smaller one. The market is not always a perfectly rational system that pays exactly according to ability.
Impact and Influence
The speaker illustrates the point about company impact by comparing a scientist in a small company and someone in Meta. The effect of someone working in Meta or Google may be small like changing the color of a button, but it could affect the experience of hundreds of millions of people using their applications, so their influence and contributions are much more valued. A company with many users and substantial profits can afford to pay its employees more. The speaker emphasizes that joining a successful company is often more advantageous than merely possessing coding skills.
The Dilemma of Staying in Small Companies
A thought-provoking point raised by the speaker stems from the question: Why do capable individuals remain in smaller companies with lower salaries when opportunities for higher pay exist elsewhere? The speaker also admits to being in this state, wondering when he will finally make the leap. There are several potential reasons.
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Difficulty Entering Large Companies: Securing a position at a major company requires both talent and opportunity. The speaker feels that interview processes are often detached from the actual job requirements.
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The Interview Process: Interview questions and the material tested, such as algorithm questions, might not be relevant to the actual day-to-day tasks. Although, such testing is useful to a degree since it helps to filter out unqualified candidates, or those with exaggerated claims. It can filter out people who cannot even write basic code or are unable to clear basic IQ bar.
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Extensive Preparation Required: Jumping to a larger company necessitates significant preparation, including studying data structures and algorithms, system design, and behavioral questions. This process can take months, and the effort may deter some people, especially older candidates.
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Comfort and Stability: The perceived stability of their current position and a lack of confidence in their abilities might also contribute to their decision to stay.
Overcoming Inertia and Taking Action
The speaker acknowledges his own inertia in pursuing new opportunities, citing time constraints and a lack of motivation for the extensive preparation required. However, he recognizes the importance of continually developing his skills to avoid being caught unprepared in the future.
Influence and Contribution on a Larger Platform
The speaker further reinforces the importance of working on a large platform. For example, the speaker highlights a Meta employee who managed to save hundreds of thousands of dollars for their team, demonstrating how impactful their contributions could be. This further proves that individuals can have a substantial impact on a large company and be appropriately compensated for it.
Conclusion
The speaker concludes by acknowledging that while the principles of career advancement are easily understood, executing them is challenging. Taking a look at opportunity, preparing the materials, practicing coding questions - all require significant effort. He hopes everyone can work in a big tech firm and get rich.
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