Re:The Programmer Salary Taboo
by praptak on Wednesday April 13, 2011 @08:40AM
(#2441872)
This is a sad fact. There are huge (irrational?) barriers for giving employees big raises or bonuses. Take Borland for example - they'd rather sue Microsoft for brain-drain (i.e. paying the employees more) than match the offers: http://news.cnet.com/2100-1023-279561.html
[ Parent
| on HN ]
> There are huge (irrational?) barriers for giving employees big raises or bonuses.
Since they exist at almost every company, I think it seems probable that it's rational. Here's a simple possible argument for their rationality:
Creating big barriers to large raises/bonuses discourages employees from sharing salary info, since there's little they can do about it. Furthermore, the more your employees are worrying about their salary, the less they're working.
Re:The Programmer Salary Taboo
by jessedhillon on Wednesday April 13, 2011 @03:34PM
(#2443789)
> ...I think it seems probable that it's rational.
It's an example of bounded rationality: http://en.wikipedia.org/wiki/Bounded_rationality
The decisions seem rational given the perspective and limitations of the decision-makers.