This week weāre joined by Gergely Orosz and weāre talking about the insane tech hiring market weāre in right now. Gergely was on the show a year ago talking about growing as a software engineer and his book The Tech Resume Inside Out. Now heās laser focused on Substack with actionable advice for engineering managers and engineers, with a focus on big tech and high-growth startups. On todayās show we dig into his recent coverage of āthe perfect stormā thatās causing this insane tech hiring market.
Gergely Orosz: Yup. I have been writing on and off on my blog, about like one article per month, and I was thinking āWell, I might wanna turn that up, because I really enjoy writing about interesting stuff.ā It does take time to research, so I actually came up with a compromise where I still write about once a month, a lot more detailed articles for anyone to read⦠So thereās a free tier where you can subscribe - and it also goes on my blog you donāt even need to sub to a newsletter although you do get it in your inbox. And then for people who are engineering leaders, I write about some more insider details that you donāt really see. So if youāre an engineering manager or a senior engineer at a high-growth startup or a big tech, itās the type of information that youāre gonna look out for.
And a good example was the insane hiring market, which - I basically write about open secrets in the industry. If youāre in the right circles, you know this already; youāve been talking about this with people. But a lot of people donāt⦠And a hiring market is a very crazy one, because ā everyone was talking about a crazy market, but I actually did the research; I talked with hiring managers, recruiters, job seekers, I actually helped a lot of people negotiate their packages⦠And the crazy thing is that it has never been this crazy. When I say āneverā, Iām not exaggerating. There was a dotcom boom where the hiring market was insane, and most of us were not even working then. There were some people who were, and I talked with them, and that was a crazy market. This market is even more crazy for experienced engineers⦠And a lot of people think itās because of remote work, and Covid, and people start to work remotely, and now we can hire in different areas⦠But itās actually just one of the many elements.
[32:12] What actually happened is thereās just a huge amount of money being poured on the market, thatās coming from a couple of sources. The first one was ā and everything starts with Covid; Covid was this tick started a lot of parallel things happening. The one thing that it started, which is very interesting - I talked with a couple of heads of engineering and heads of mobile at some large retail banks in the U.S, and some more traditional companies⦠When Covid started, people stayed home because of the lockdowns, and they started to use online services more. For example, on mobile, one of the biggest U.S. banks told me that what they saw is they saw a bunch of user complaints, and their user numbers went up because people above 70 started to use their mobile apps, and they didnāt know how to use it. These people always went to the bank⦠And now theyāre actually at risk of losing these customers if they couldnāt do this, so they suddenly started to build features to make it easier for these people to do⦠And also, what they noticed is itās a huge profit if people use the mobile app. Whoever uses the iOS app for this bank churns a lot less, they basically spend more money⦠So itās their goal to get them on there. And itās not true for people who only use web, or only use some other platform.
So this bank started to ā they actually reallocated a massive amount of budget mid-year to hire more mobile engineers. They couldnāt hire fast enough, so they actually are retraining some of their web engineers. And they are one company. So this is a traditional company; itās not a Facebook, itās not a Googleā¦
Then you have some of the other side of the money coming in, where some of the large tech companies also realize with Covid the game is on, the competition is fierce, they are pouring more money⦠And the capital markets are going very strong, so startups are raising more money than ever. Thereās this joke that the seed in 2021 is the new series A five years ago⦠And Iām advising a couple of startups - Iām in some of these groups, and Iām seeing pre-seeds, people getting 4 million dollars and a 12 million evaluation for a pre-seed for an idea, a product.
So thereās all this money coming in⦠And basically, everyone has realized that there is now a limited time, the next 3-5 years the winners will be decided in the global digital market⦠Both in traditional companies who need to become more digital, they realize they need to compete with Google or Facebook⦠So the likes of Macyās, for example, IKEA - some of these companies are hiring executives from the big tech, from Google, from Facebook, from whoever they can. The banks are doing the same thing. The VPs of engineering at Uber went to Goldman Sachs, where theyāre probably gonna build some consumer-facing thing.
So everyone has arrived, and everyone wants the senior people, so the market has literally exploded for senior people, and itās everywhere. So in California, offers are ā year-on-year, offers are up about 20%-30%, depending on where you are⦠But this is in California. In lower-cost regions, because of remote, itās even higher.
The craziest thing about this market - itās a booming market if youāre an experienced technologist/engineer. Itās also spilling over to all these engineering managers, technical program managers, to some extent to designers as well⦠The one group that is not feeling any of it and is the worst market for them is junior or entry-level engineers. No one wants to hire them. Because of remote, every company knows they donāt really know how to onboard them⦠And what everyone is spending money on is theyāre building more complex systems; large, scalable systems. They need that expertise.
And to top it off, the cherry on the top, which just shows how absurd it is - thereās actually fewer senior engineers on the market. Usually, in a booming market people will come out of their hiding holes, if theyāre doing something⦠The opposite is happening, because people are burning out because of Covid, theyāre quitting with nothing lined up to just take a break for a couple of months, from 3 months to 12. Theyāre changing careers, like myself⦠I have a bubble where I know some senior engineering managers who are now becoming coaches and whatnot⦠And this data point is a bit anecdotal⦠I have data points in my newsletter for all the other ones, butā¦
[36:03] So itās a crazy market, where demand is going up, supply is going down, and weāre not going to have more senior engineers in the next year or so⦠And itās a race to the top, basically. So the likes of Google, Facebook, Apple - theyāre still able to hire, but crazy stuff is happening that I had never heard before. For example, Apple is known to not negotiate too much. They give you an offer; itās Apple, you accept it.
I now have multiple cases where I was advising people on their sale negotiation where Apple not only negotiated, they bumped people up an extra level. So someone was offered a senior engineering role, and they got a staff. And they didnāt even have a competing offer; they said they were talking with other startups where they might have a competing offer, and Apple just said āAlright, weāre bumping your comp with 30%. Youāre getting a higher level without any interview.ā And this just shows how even those companies are having trouble both hiring people, and also retaining people. A lot of people are leaving.
So yeah, itās never been a better market to look around and change jobs, if youāve got the skillset to interview, if youāre experienced⦠And if youāre starting out, itās super-tough. Just get your foot in, itāll get better, but itās really interesting, that market.