Silly Austin American-Statesman article

Submitted by softwarejanitor on Tue, 06/24/2008 - 10:18am.
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Claims that the "average tech worker" in Austin makes $100k!

Bullpucky! Either that or they are averaging folks like Michael Dell and other senior execs into the numbers...

I know a lot of techies, but I know very few that actually do tech work as opposed to managers who make even near $100k. I'd really like someone to tell me where the > $100k jobs are at and what you've got to have on your resume to get them.

All I can tell y'all is that certainly the average software engineer, sysadmin or network admin around here is making more like somewhere between $50-$90k, and a lot of folks like PC techs, tech support, and QA are making less than that. One only has to scan the job postings out there to see how unrealistic this whole thing is.

Submitted by rmh3 on Tue, 06/24/2008 - 11:14am.

Actually, I think that's probably an accurate figure. I know many who are on either side of that mark, and mostly, that depends on experience and areas of expertise. Obviously, someone who graduated in 2005 and does nothing but java or .NET code doesn't have much chance of seeing that kind of money, but there are a number of jobs in Austin for experienced Database Developers, Software or IC Engineers and Team Leads north of $100K.

Submitted by softwarejanitor on Tue, 06/24/2008 - 11:21am.

Please post links to the jobs or tell them we've got a bunch of people around here who are looking for those kind of jobs. Mostly people with years of varied experience, not just recent grads too.

Submitted by softwarejanitor on Tue, 06/24/2008 - 12:42pm.

Here is an article from the Dallas Morning news which looks like it is reporting on the same numbers. Interesting to see a different viewpoint/bias from a different paper/reporter...

http://www.dallasnews.com/sharedcontent/dws/bus/stories/062408dnbuscyber...

Submitted by rmh3 on Tue, 06/24/2008 - 12:44pm.

Here's another article verifying the amount the AAS used, and from what I would consider a very solid source...

http://www.marketwatch.com/news/story/silicon-valley-ny-still-ride/story...

Submitted by softwarejanitor on Tue, 06/24/2008 - 12:55pm.

Well, they all appear to be using numbers from the AEA and the BLS. I've thought that the BLS's numbers were fudged for years, now I believe the same thing about the AEA. If you think about the number of techies that would have to be making well over $100k to bring the average number up to that figure given the number that are obviously making under $80k it just seems completely unrealistic.

I'd like to see a description from the AEA as to how they conducted their survey, what the sample size is, and most importantly, just who they are counting as "tech workers". If they say there are 68k tech workers in the Austin area, then just a handful of the largest employers make up more than 50% of that total. And sure, Dell, IBM, Samsung, Freescale, Mototola, AMD, etc. all have quite a few employees over $100k -- and probably mostly in management, but a big chunk of their employees are also well under that, probably a majority of people in technical roles. For every senior IC designer that is getting over $100k there are probably 2 QA people and 3 clean room monkeys who are making less than $50k.

Submitted by softwarejanitor on Tue, 06/24/2008 - 1:16pm.

A little research on the AeA shows that they are an industry association funded by large employers (like Microsoft, Oracle, etc) who want to reduce tech worker salaries by flooding the market with cheap labor. Obviously this survey must be part of their plan to tell kids they should go into IT because of its "great future", ignoring the fact that a lot of recent grads are having trouble finding work in the industry (no experience, no job) and even veteran techies face an unemployment/underemployment rate around double that of the general population.

Even AeA's numbers show that there are fewer tech jobs now than there were in 2001 and we all know that IT in general has faced severe downward pressure on salaries since the crash as well.

Submitted by softwarejanitor on Tue, 06/24/2008 - 1:27pm.

BTW... no offense intended to folks that work in clean rooms... Programmers are also commonly referred to as "code monkeys" (especially by sysadmins and DBAs). In our respective niches we are all the folks who do the bulk of the work for the smallest bits of the money I guess.

Submitted by shiva7663 on Mon, 06/30/2008 - 12:43am.

The "average tech worker" in Austin is unemployed. heh.

Submitted by softwarejanitor on Mon, 06/30/2008 - 8:10am.

Well, I don't know about that, in the survey here (admittedly small sample size) unemployed was only a couple of times more than the official government numbers... but as many former techies as I've run into doing things like wearing the orange aprons at Home Depot, you'd think that would drop the average salary down, but I suspect they don't count unemployed or underemployed.

Submitted by zratchet on Mon, 06/30/2008 - 9:55am.

http://www.gamecareerguide.com/features/416/the_game_industry_salary_sur...

Not Austin-only but a look at average numbers for another tech industry that has about 1000 people in Austin (and growing!)

Submitted by softwarejanitor on Mon, 06/30/2008 - 10:17am.

Interesting... But it tends to support that salaries > $100k are rare for non-managers, especially since it is not Austin specific, and a large percentage of game industry workers are on the west coast were cost of living and salaries are higher. Admittedly cost of living is usually much higher than salaries in places like the bay area and Seattle, which is favorable towards Austin, but still.

Submitted by johnlogic on Mon, 07/07/2008 - 4:33am.

Austin's game business died in 2004 when its two largest developers closed: Electronic Arts closed its subsidiary Origin Systems, followed by Acclaim Entertainment's bankruptcy. Origin co-founder Richard Garriott managed to get Korean NCsoft to open an Austin office, and Acclaim defectors started Retro Studios (now a Nintendo co.) and Inevitable Entertainment (now Midway, a Viacom cousin).

So, the local market isn't growing so much as just changing names. With churning, I've also the area also loose top talent.

As for me, I'm quickly giving up on Austin. California is certainly a more expensive place to live, but that's where the jobs are.

FYI: The center of game development seems to have moved from Silicon Valley to Los Angeles.

Submitted by softwarejanitor on Mon, 07/07/2008 - 8:34am.

One thing that seems pretty obvious is that NCSoft's Austin office seems to be much smaller than the old Origin systems office was and I would assume that the same is true when comparing Retro to Acclaim. It is unfortunate that the talent has to follow the money, but inevitable. I've heard some grumbling from people at NCSoft that the Korean parent company would like to relocate the Austin office to LA because it is an easier flight from Seoul. The feeling seems to be that only the Garriots keep that from happening as they refuse to relocate.

Submitted by rmh3 on Mon, 06/30/2008 - 10:44am.

Game industry salaries are notoriously low because the go after people who just really want to work in the industry, and are willing to take a lower salary just to work there. This is true not just of coders, but artists as well.

Submitted by softwarejanitor on Mon, 06/30/2008 - 10:57am.

Yeah, I would not argue with that. Unfortunately IT salaries in general are low these days because employers are going after people who just want to work at all and are willing to take whatever they can get just to get by. That goes for programmers, QA, even project managers.

Submitted by johnlogic on Mon, 07/07/2008 - 4:48am.

The "average tech worker" should include the small army of temporary employees that Dell hires at $9/hour ($18K/yr). I reckon that Dell employs one third of the area's tech workers, and that as many as half are on the factory floor (until the plant closes). I've seen some contract work available, mostly at $50/hour, which is equivalent to about $70K/yr as a regular employee with benefits. Wages for lead techies seem to top out around $130K/yr here.

All together, I'd estimate that the average Austin tech worker makes less than $50K/yr.

Submitted by softwarejanitor on Mon, 07/07/2008 - 8:30am.

I think you are closer to on track than the people who are trying to puff up the numbers for most likely political gain.

Submitted by johnlogic on Mon, 07/07/2008 - 11:56am.

Sure, politicians inflate all kinds of numbers to promote the area. I'm willing to accept a little "spin" and all for promoting the area (serving our own interests), but some of it goes way too far.

Of late, one of my favorite gripes has been how the chamber of commerce compares the number of patents issued to residents of Austin and San Jose. (By the way, San Jose, in my opinion is not so much the "capital of Silicon Valley" as it is its "ass end"; its only redemption is that it's relatively cheap.) The Austin chamber ranks Austin a close second or third behind San Jose. However, if we properly compare the regions (as I did recently in my comparison of Austin and Silicon Valley), Austin has less than a tenth as many!

Submitted by softwarejanitor on Mon, 07/07/2008 - 12:07pm.

You have to keep in mind that those people are usually where they are because they've got expertise in lying with statistics. O.K., maybe that is a little harsh... Using statistics to suggest a conclusion that may not reflect reality.

I have to say I pretty much agree with your assessment of San Jose though... its really a pretty dumpy place, especially when you consider that even being cheap compared to much of the bay area, if you believe the online calculators the cost of living there is still approximately double that of Austin, which is one of the more expensive places to live in Texas. However you are also correct that when it comes to tech business and the sheer volumes of techies, the bay area is pretty hard to compete with.

All that said, when I run the numbers of the cost of living on the west coast compared to the salaries, any interest in relocating tends to evaporate... And Austin really is a much nicer place to live. I don't really understand why the politicians here seem to think it so necessary to lie in order to promote things here.

Submitted by heymon on Mon, 07/07/2008 - 9:58am.

Based on my experience in high-tech recruiting/HR (10 years), I have to agree with the numbers in the articles. Austin is highly centered in the semiconductor industry, where salaries for all job categories have a range between 65-130K, with 80-110K being the average for individual contributors with 5-10 years of experience. When you add in the managers, the average goes up. Admittedly, Austin has shed a lot jobs in general software coding, so those salaries have gone down, but at the same time it's added more jobs in complex IT roles such as SAP/Oracle analysis and advanced Java, which tend to have salaries on par with EE's. Additionally, Austin is becoming a hotbed for newer industries such as solar and other "green" technologies, where the job skills are scarce and therefore command a higher salary. Because Austin has been able to stay ahead of the salary curve in technology, we've been able to maintain healthy housing and other markets while the rest of the country sputters.

Submitted by softwarejanitor on Mon, 07/07/2008 - 10:55am.

Each particular job category usually looks like a pyramid where as salaries go up, the number of workers at that level decreases. The bulk of the workers are down towards the bottom of the pyramid which means the average salary is going to be a lot closer to the low end number than the high end number. That means closer to $60-80k than it is to $110-$130k. While I agree that software engineering positions have been the hardest hit when it comes to salary loss everything points to losses being more or less across the board. And while a few jobs have been added in categories like SAP/Oracle you mention, the number of those is relatively small to the total job market and worse virtually all of those positions are for relatively short term contracts and as we all no contract generally means no benefits (or expensive benefits cost borne on the back of the worker) which knocks the real compensation down a lot from what it appears on the surface. And contracting generally also means travel and down time between projects which eat into income.

Submitted by zratchet on Mon, 07/07/2008 - 10:55am.

There are currently 60+ game companies in the Austin area - while a lot of them are very small shops (less than 10 people) there has been an influx of new shops since the iPhone SDK was announced. That and Facebook seem to be pushing a new trend in indie development.

Submitted by softwarejanitor on Mon, 07/07/2008 - 11:20am.

The numbers I've heard say that approximately 1000 people work for gaming companies here in the Austin area. Seems consistent with what you are saying if a large number of them are < 10 people and we know about the larger ones such as NCSoft, Multimedia Games, etc.

What is the mix of job categories in those smaller companies when it comes to the lower paid jobs just as tech support, play testing, QA, etc., to the middle paying jobs (developers, producers, artists) and the higher paying senior jobs?

Unfortunately game companies seem to have a reputation for favoring younger, lower paid people for developers and expecting massive numbers of working hours for relatively mediocre pay for anyone except the superstars who have several big hits on their resume. It can also be a feast or famine business, especially for the smaller and lesser funded companies. From people I know who work at some of the larger companies even they aren't immune to the cyclical nature of the business, especially when long term projects get canceled or games ship and don't sell as expected.

Submitted by zratchet on Mon, 07/07/2008 - 11:23am.

It varies a lot what the mix of jobs is based on what the company is doing (there are a lot of companies that do outsourcing or contracting of a certain section of development). It's very much a media industry and the pay/hour is a true issue. I and others are working to change this, but it won't really change till publishers realize their model is wrong.

For a list of Austin Game Companies (free signup required - this is my site):

http://groups.google.com/group/aigd-general/web/austin-game-companies

Submitted by johnlogic on Mon, 07/14/2008 - 7:15am.

More manure for the pile:

This morning on Monster.com,
I read a listing for a local Lead Software Engineer with GE. One of the bulleted items under the "Qualifications/Requirements" heading read "You must be willing to accept an annual salary that is not more than $110,000". Note that's for a lead, not just a senior or mid-level engineer.

Clearly, this helps to illustrate that even top-end pay tops out around $100K here. How much more plain can this get?

Considering that Dell's factory workers earn less than $20K, would anyone care to speculate where and "average" might really be? I'm guessing it's really around $60K, not counting the unemployed.

The Statesman is so out of touch with reality that I gave up on it years ago; I think a few more of us should boycott it. I reckon that Austin's best newspaper by far is El Mundo, and I can't really read Spanish.

- John
(p.s.: Because posters' names aren't included in thread update email, could y'all start signing posts?)

Submitted by softwarejanitor on Mon, 07/14/2008 - 8:26am.

That $110k job is way over the norm for most of the jobs you see posted, even for a lead or manager. GE is a big company, and perhaps they have uniform salary bands across the country so people in Austin are benefiting from higher costs out on the coasts. If a person can get into that kind of situation they are in good shape, but unfortunately it is rare, most companies adjust their scales to different markets at least somewhat.

As for your guess of $60k, that is in the range that would appear to be realistic for Austin. I know the Statesman is out of touch with the common man, but unfortunately they are the biggest print media for the area. And that means a lot of people are going to read what they print and a fair percentage of them will believe it without taking the time to critically analyze its bias.