Did You Order a Sledgehammer?

2 PM MT July 20th, 2011 - Provo, UT

"Robert, we are impressed with your education and love your enthusiasm for GIS software development. I want to offer you the opportunity to join our team," he said in a clear, confident voice.?

I looked over at my wife with what had to be the stupidest-looking ear-to-ear grin she had seen me make during our six years of marriage.?

I graduated at the end of April, and because I had worked in an undergraduate research position, my employment ended simultaneously. It had been months since I earned a dime, and my last paycheck was weeks ago. We were living on a minimal supply of money that would run out in a matter of weeks. I felt desperate as I had already applied to dozens of positions, and this was the first time I had made it beyond the first interview. My hopes were high as I said, "That sounds awesome!"

He continued the conversation, "We would like to offer you the title of Software Engineer with a base salary of $32k per year". It took a minute for that to sink in. You see, $32k per year was about $10k a year more than I would have earned by accepting the grad school opportunity I had turned down. I was in shock because it was so low. I knew people who were getting offers 2x - 3x that amount. I didn't know what else to say but "Thank you. I am going to need to think about it," With that, we ended the conversation, and I sunk onto the couch next to my wife. Could we live on that in Anchorage, Alaska? I couldn't imagine that we could, and a quick internet search proved to me that, at that salary, my family of four would be well below the poverty line, even taking into account that US citizens in Alaska get a stipend from the state for living there.?

What was worse, this was the exact job I wanted. It was software engineering for a geographic information systems company. The company had a great culture, and two of my friends from University had already started working with them and loved it.

The turmoil I felt was intense, and the frustration with the process was more substantial. I had spent at least a dozen hours applying, interviewing, and testing for this position. Why didn't they tell me that the salary range was so low??

This isn't a unique experience. Virtually everyone who has ever run the race to get into a professional position after University has experienced something similar at least once. There is a trend spreading across the US to change that. Many states and local jurisdictions are passing legislation that requires companies to disclose the salary range of jobs they advertise. On LinkedIn, I see a ton of hype around this, with a strong focus on how great it is that "these bad companies will have to start doing things right."??

The company in my story wasn't evil, and they weren't giving me a hard time. They filled a niche that had not, up to that point, been very lucrative, and if they had to compete on salary alone, they wouldn't be able to hire people like me.?

My experience was frustrating but a mere annoyance in the big picture. The question then becomes should we use our government to optimize this? That's like driving a thumbtack into a corkboard with a sledgehammer. Does it do the job? Maybe. Are there unintended consequences? Most definitely.

Every choice we make has tradeoffs, so let's look at the tradeoffs for this.

If we force everyone to advertise the salary range of their open jobs, what happens?

We will push the market to homogenize salaries in exchange for avoiding some of the wasted time professionals spend chasing jobs below their desired salaries. Transparent salaries and less wasted time sounds great. The tradeoffs likely include:

• Professionals will only filter out companies not offering their ideal salaries before discovering the other critical aspects of the company or the job.
• Lower-performing professionals will be priced out of the market.
• Some firms will go out of business because they can't support the new market rates.
• Top-of-market salaries will be lowered, reducing lifetime earnings for top performers.?

In short, we are making the market far less efficient than its current state. At best, the overall outcome is a wash; at worst, it is catastrophic.

So should we be legislating that all firms advertise the salary range of their jobs? I don't know for sure, but my gut says no. I admire many businesses that adopted this pattern long before the call came to make it mandatory. I admire them because they believe it is the right thing to do.?

Giving people as much freedom as possible to do what they believe is right leads to diverse choices that increase the chances of favorable outcomes. We should discuss the benefits and the tradeoffs of this policy but leave the choice up to each firm.

What would have happened if this kind of legislation had been there back in 2011? There is a good chance my friends who joined the company and had a fantastic experience would have yet to apply. I certainly wouldn't have. A company that can't hire dies.

Meanwhile, back in my living room in 2011, I called the hiring manager. I told him, "I just can't see how I can make that amount work." After which, he bumped up the offer twice, ending at $36k/year before we ended the conversation amicably.?

Even though it was heartbreaking, walking away was the right call for my situation. The practice and confidence I gained with this one experience made it easier for me to keep trying. I knew I was good enough to land my dream job. I just needed a company that could afford me.?

It took two more months, hundreds of applications, and dozens of interviews before I found the first step in my career. Not every hardship ends up being bad for us. Instead of optimizing for pain avoidance, we should architect our civilization for learning and growth. We will go much farther that way.

Until Next Week!

Robert