Does young age matters during salary negotiation in the Tech Industry?

• HR: “I’ve found the perfect candidate, here’s prospective job offer”
• The CEO: “Great! Wait, hold on, I can’t give him €55k, he is too young.”

Tech Industry is a very specific area where it seems that everything is possible. Although, it breaks some company codes, some conservative traditions still remains in the landscape, especially in medium sized firm.

Let’s consider the following situation:

Nadeem is a young software developer living in Amsterdam who was approached by a well-known E-commerce company based in the city centre for a developer position. He passed all the rounds of interviews easily. Do not ask why, Nadeem is a coding genius. Besides, he is truly dynamic, humble, serious and proactive. At only 24 years old, this creative and skilled candidate is able to program elaborate clean code and create a product vision like nobody can on his current team.

The team that he would like to join is composed of mid-thirties men and one woman. They have been evolving for at least 2 years and are the famous squad that released one of the best features on the market. The struggle would be real, if Nadeem wants to join the team, he will have to lower his salary expectations for the position. Nevertheless, he will not get its €55k, even though he had €45k in its previous job. The reason? He is too young…

In the end, the CEO has considered that €55k can be offered to a mid to senior developer, of at least five years of experience. He offered €47 + 1k to Nadeem who refused the offer.

Salary as a way to keep unity in the team

As you know, salaries in the Tech Industry are way more disconnected from reality than the other sectors. A young Tech genius can quickly earn a lot of money in a prestigious Hub/city on the planet while a sales or marketing person will stay in a junior position with a junior salary.

However, in some smaller medium sized Tech companies, it can be hard to get a higher salary, even if you have a very good technical level. Of course, I am not talking about the GAFA, who are often ready to put a high price for a superstar candidate. No, I am talking about the average medium sized company/SME.

In this respect, the CTO, HR, the Managing Director and/or members from the board will do their best to keep a particular line of wages within each team. This means that they will not be able to over pay someone, without risking some gossip between colleagues. Though we don’t condone salary talk, people talk about what they earn and someone who’s over paid could provoke a disruption in harmony of the team, especially if this person has an average skill set compared to the others. 

The young manager matter

We all have encountered, as a Recruiter or candidate, a hiring manager who stated that this candidate/person is too young to be promoted as a manager. This idea is slowly disappearing in the Tech Industry, especially in innovative environments creating the latest, cutting edge, technologies, usually start-ups. That’s right, in these kinds of environments, soft skills like leadership, proactivity and even ability to provide mentoring, enhance career progression within a company. Products are not totally established on the market, so growth has to be faster. Those with promising mid-level experiences, will become tomorrow’s amazing manager.

On the other hand, you will still find those traditional companies which are keen to keep a certain vertical hierarchy within teams. Business is stable, they slightly grow their revenue each year and they’ve been rooted in the Tech landscape for quite a long time now. So why would these companies take the risk of introducing a young wolf into the herd? The new manager might not gain the proper and due respect from their colleagues, especially if he/she is way younger than an old crowd of developers.

Thus, some Hiring managers or HR will notify the external recruiter that the candidate is too young compare to his/her salary expectations, even though, this even candidate has already all the skills needed. However, I can assure than most of the hiring staff knows the difference between years of experience, potential and management skills.

The short supply of candidates can erase the salary issue 

Fierce competition, disappointment from a refused offer, fast paced recruitment environment, high pressure from the businesses, that’s the daily life of Tech companies nowadays. Such issues weren’t present a few years ago. Firms were in the position of power, they owned the all mighty decision of which candidate to hire. 

The balance is now shifted. Or at least, is more equal.

With more companies hiring and a short supply of candidates to fill these roles, this has led to an increase in what was possible to offer a candidate. Companies offer many perks and incentives to ensure that candidates will find the working environment attractive. 

Although, salary is not considered a candidates’ the number 1 priority anymore, it still remains a crucial factor when it comes to getting to a new job decision. Your monthly payslip and the numbers on it are an immediate feeling of satisfaction. We do not work for glory. To face this issue of short supply candidates, companies tend to increase the salary that they can offer in order to stay competitive in the market. So, don’t worry, even if you are a young genius like Nadeem you will find a company that will value your profile and match your salary expectations.

In conclusion, if you feel any frustration in your current role, just have a talk with your colleagues. Try to discuss this with your managers first, make them realize what added-value you bring to the team and the company. If they don’t want to listen, then just call your favourite recruiters :). It’s time to chase the new amazing opportunities that are out there.