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Re:Want good programmers? Then pay them. by pmjordan on Thursday May 03, 2012 @07:06AM (#3923194)
Some context/perspective on the Austrian employment situation:

* Salaries are typically quoted per month, but there is a bonus of 2 months's salary paid per year, so yearly gross is 14 x monthly. The bonus is taxed at a lower marginal rate (6%, no social security contribution, IIRC, vs 37.5% lowest marginal rate).

* There is no fixed minimum wage in Austria. Instead, there is a collective bargaining system, which sets minimum salaries for each industry. Within each industry there are defined categories of jobs, education and levels of experience, along with minimum employment contract conditions and payment for each. This has some bizarre consequences, such that equivalent jobs (e.g. secretary) have different minimum wages in different industries.

* Employers are required to pay a lot of social security/tax on top of what the employees themselves pay. (just checked this: 21.83% social security, communal tax 3%, about 6% other "social" contributions according to http://www.gruendungswissen.at/gruendungswissen/blog-post/20... )

* Employees are almost impossible to fire. If that programmer ends up doing negative work, he's going to be on your books for a while.

I've never been anything but self-employed in Austria (we get screwed in entirely different ways) but culturally I think there is an expectation that you won't negotiate on your salary. This is further reinforced by the built-in graduated minimum pay: why permit the employee to negotiate a raise if they'll legally be due a raise anyway?

Re:Want good programmers? Then pay them. by zeemonkee on Thursday May 03, 2012 @07:22AM (#3923245)
I've had a similar experience in Finland - the shitty salaries (and lack of interesting work that isn't somehow tied to the sinking ship that is Nokia) are one reason I avoid Finnish companies like the plague, and just work for foreign clients.

This is the reason Finnish companies don't advertise salary, which is common in the UK and US for example - it's all collectively bargained in some way out of your control.

Re:Want good programmers? Then pay them. by kaib on Thursday May 03, 2012 @07:29AM (#3923279)
Just a quick heads up. If you are interested in distributed systems, computational geometry or working on a custom WebGL app fire me an email, we might have something interesting for you at Tinkercad. Our tech team is based in the heart of Helsinki and we are actively looking for new talent.

If we aren't a good match for you I know a bunch of other interesting startups that I can put you in touch with. Ping me at [email protected].

Re:Want good programmers? Then pay them. by daeken on Thursday May 03, 2012 @08:49AM (#3923597)
Not to hijack the thread too much, but with the sort of thing you're doing, I'd seriously consider reaching out to people from the demoscene. There's a pretty large demo culture in Finland, and they'd be perfectly suited to the task, particularly the computational geometry and WebGL side of things. I'd be interested myself if I were in Helsinki.
Re:Want good programmers? Then pay them. by base698 on Thursday May 03, 2012 @12:26PM (#3924494)
I was implementing a proof of concept in WebGL for my product and thought, I wonder if someone has implemented a WebGL modeler yet? After a bit of search ran across Tinkercad... Was a super impressive product, and don't know why more people aren't aware of it.
Re:Want good programmers? Then pay them. by pmjordan on Thursday May 03, 2012 @07:27AM (#3923266)
To be clear: collective bargaining normally only sets minimum conditions. You're free to negotiate for more, the employer just might not go with it.

And I know what you mean about foreign clients: the majority of my contracting revenue has been from clients in more progressive countries. Part of it is also that Austria is a small country (though higher population than Finland), so of course there are more potential good clients elsewhere.

Re:Want good programmers? Then pay them. by zeemonkee on Thursday May 03, 2012 @07:32AM (#3923289)
I don't know about Austria, here it's a case of "well, this is the industry standard, why do you deserve more? - oh you're a foreigner? Just be grateful we even give you a job" (even if you speak Finnish).

So, most employers don't go with it ;-)

I'm quite happy with foreign clients as they pay better and the work tends to be more interesting - the only killer is the different timezones.

Re:Want good programmers? Then pay them. by pmjordan on Thursday May 03, 2012 @07:41AM (#3923323)
Yes, there is also a strong bias against employing non-natives (or at least non-Germanics) in Austria, orthogonal to the other issues, which was quite shocking after living the previous years of my adult life in the UK, which has a much more liberal culture. This bigotry is much less of an issue (I'd almost say a non-issue) in actual technology companies though. It's telling that the proportion of immigrants among the self employed is much higher than the total proportion of immigrants (though that effect is seen in many countries, and I don't know if it's much higher in Austria).
Re:Want good programmers? Then pay them. by skrebbel on Thursday May 03, 2012 @08:20AM (#3923483)
Interesting! This is nearly a 180 degree opposite in the Netherlands. Companies can't find the talent they need inside (because they pay them too little, but ok), so they try to attract foreigners. Foreign "knowledge workers" also get tax benefits for the first many years, and many employers (particularly consultancies and larger OEMs) have people specialized in getting foreigners a worker's visa.
Re:Want good programmers? Then pay them. by mryan on Thursday May 03, 2012 @08:41AM (#3923559)
Ah, the "30% ruling". For those that haven't heard of this wonderful piece of legislation if means you only pay tax on 70% of your salary if you qualify as a knowledge migrant. Yes, you get 30% of your salary tax free. There are also other benefits, e.g. you don't pay income tax on dividends from your home country.

It's not just consultancies and OEMs that will help apply for this - I work at a startup and I am classified as a knowledge migrant.

Any Django/Python devs who are interested in living in a beautiful city and only paying tax on 70% of your salary, please get in touch - we're hiring!

Re:Want good programmers? Then pay them. by skrebbel on Thursday May 03, 2012 @09:15AM (#3923682)
Wonderful for you maybe. I call it positive discrimination.

Btw, is that startup cloudfrag? Where're you guys located? (I'd rather be a garbage man than write Python for a living, but I'm always curious about Dutch startups that I didn't know about)

Re:Want good programmers? Then pay them. by Jasber on Thursday May 03, 2012 @09:58AM (#3923852)
Out of curiosity why would you rather be a garbage man than write Python for a living?
Re:Want good programmers? Then pay them. by zeemonkee on Thursday May 03, 2012 @10:49AM (#3924054)
Maybe because he prefers languages where he has to do his own garbage collection ;-)
Re:Want good programmers? Then pay them. by skrebbel on Thursday May 03, 2012 @11:32AM (#3924249)
Usually when I explain this, I get downvoted by the HN Pythonista downvote mafia, but since you asked, I'll take that risk.

In essence, I think Python is the mediocre features of all languages combined. It's a mish-mash of ideas, badly mish-mashed together. I don't want to use a mediocre language.

- It's object-oriented, but not consistently so (len() anyone?)

- It's object-oriented, but not really the standard library (derive from dict? Oh, no, you should derive from UserDict then. dict isn't a class, didn't you know that?)

- The language's evolution shines through even more than that of PHP. First it was "functions! short little functions! those are easy!" (except "print", come on, that's so common that we must make it a statement), then came some data structures, then came objects and classes, so they backported those datastructures onto OO stuff, but not entirely, and oh by the way here's some additional magic functions for some more magic because magic is cool! And lambdas cause hey, you asked. (note: if this isn't the real history of Python, then I apologize to the apostles; to me it feels like this is the history)

- It supports functional programming constructs, but in such a limited fashion that any code not written in a imperative style quickly gets very hairy and difficult to understand.

- It's batteries included, but half the APIs are hell (admittedly, this is getting fixed with the whole "for humans" hype)

- Package management is hell. easy_install isn't easy, oh and it's not installed by default so good luck figuring that other library's "getting started" tutorial out. But hey, you need pip for this! Doh, pip is the new best thing. Except for those database drivers there, they have an installer. Oh, and they'll only work on Python 2.7.1 32-bit, but they won't warn you if this doesn't match cause that would make the code longer! We hate long code. BTW, I've heard this is less bad on non-Windows, but still, what's wrong with a single package management system, shipped with the language?

- Its documentation is complete, but very limited. Few examples, a lot of information vaguely hidden in very short sentences. What are this function's argument's types? Is this index value here zero or one based? What type does it return, and why can't I click on that to get to that type's documentation?

Now, none of these are horrible sins. In all honesty, maybe I'm overreacting with the garbage man thing. But Python is so popular, and only growing in popularity, and IMHO entirely undeservedly so. If Python was as popular as, say, Lua, I'd probably have complained less.

For a language with pretty much the same "general" featureset (dynamically typed, big community, multi-paradigm, low entry-barrier), I think Ruby does it better on all fronts except docs. Though in reality I prefer C#, but that's simply an unfair comparison.

Re:Want good programmers? Then pay them. by kamaal on Thursday May 03, 2012 @12:10PM (#3924424)
Any attempt to compare <insert your favorite tool here> with something else is going to make you disappointed. I am not a Python fan either, but Python has its own use cases for which its well suited. Its barrier to entry is low, and a lot of web frameworks are around.

To give you small example. Today I just solved a problem by chaining sed and cat statements through pipes, whereas the guy next to me considers usage of anything apart from Java as a waste of time. Any attempt to convince him why spending one whole day writing a Java program is not worth, when something like sed can do the task in minutes is futile.

Because your mind is trained to think in one specific language and its ecosystem, you find it difficult to embrace anything else. No matter what its merits are.

Python has its own warts. But it useful for a lot of problems.

Re:Want good programmers? Then pay them. by skrebbel on Thursday May 03, 2012 @02:41PM (#3925128)
Ehh, are you saying that you can't compare programming languages for their merits? Then why aren't we all using COBOL today? Taste? I'm not so sure.

Also,

> Because your mind is trained to think in one specific language and its ecosystem,

IMHO, someone who can only deal well with one specific language and ecosystem doesn't deserve the name "programmer". My suspicion is that it's people like this who call themselves "Rubyists" or "Pythonistas" and identify with the language like it's a football club. It's a novice thing.

Personally, I'm very comfortable in C++, PHP, JavaScript and C#. Rather comfortable in Ruby, Python and Java. And by "comfortable" i mean "did a significant amount of real work", not "read a tutorial". Still, think Ruby is better than Python on nearly all fronts. I know for a fact that many others disagree with me, but I sincerely doubt that that's only because they're "trained to think in Python" and I'm not.

Except for the Pythonistas of course, but they're not programmers.

Re:Want good programmers? Then pay them. by mryan on Thursday May 03, 2012 @02:55PM (#3925189)
PS: I had someone email me to see if this post was serious. It is - if you know Django/Python and want to live in Amsterdam, please email me.
Re:Want good programmers? Then pay them. by zeemonkee on Thursday May 03, 2012 @04:42PM (#3925709)
Yes, to both - unfortunately personal circumstances keep me here in Finland. I'd recommend Amsterdam to anyone, however, it's a great city.
Re:Want good programmers? Then pay them. by reinhardt on Thursday May 03, 2012 @02:36PM (#3925110)
Sounds tempting.. is there a hidden jobs link in the site somewhere? ;)
Re:Want good programmers? Then pay them. by mryan on Thursday May 03, 2012 @03:03PM (#3925231)
No, but here's one: http://www.fashiolista.com/content/fashiolista-jobs/ :)

You can contact us via that page, or feel free to email me directly (email in profile).

Re:Want good programmers? Then pay them. by reinhardt on Thursday May 03, 2012 @05:44PM (#3925968)
Ah, thought your startup was Cloudfrag. I've seen Fashiolista before and was on my list of potentially interesting startups to join. I'll probably contact you when I'm back in the market :)
Re:Want good programmers? Then pay them. by mryan on Friday May 04, 2012 @11:59AM (#3928973)
Don't worry, you don't need a sense of fashion to work here. It was one of the first things I asked in my interview - if it was a pre-requisite, I would have had no chance :-)
Re:Want good programmers? Then pay them. by reinhardt on Friday May 04, 2012 @11:32PM (#3931244)
I meant the job market but that's also good to know :)
Re:Want good programmers? Then pay them. by ricardobeat on Friday May 04, 2012 @01:55AM (#3927238)
Being brazilian and having lived in the UK, calling the british a "much more liberal culture" is incredibly funny :)
Re:Want good programmers? Then pay them. by brunnsbe on Thursday May 03, 2012 @09:05AM (#3923646)
In Finland IT-companies must pay a minimum salary for full-time workers, it's something around 2000 euros (source: http://www.teknologiateollisuus.fi/file/7960/ERTO_Tes_fi_201...) but the limit gets higher when you get more responsibility.
Re:Want good programmers? Then pay them. by nickik on Thursday May 03, 2012 @11:48AM (#3924329)
I just saw a add of a firm that wants to get a clojure programmer wiht a Ph.D. in robotics, computer vision or something around there. I got the first part down at least :)
Re:Want good programmers? Then pay them. by pavlov on Thursday May 03, 2012 @07:21AM (#3923243)
Salaries are typically quoted per month, but there is a bonus of 2 months's salary paid per year, so yearly gross is 14 x monthly.

Interesting. During the recent Euro crisis, when journalists discovered that some workers and officials in Greece enjoy a similar "extended year" of extra salary months, there was wide uproar across Europe about how the corrupted Greeks are being overpaid in ridiculous ways.

In the EU it's nowadays easy to see the speck in your brother's eye, but not notice the log in your own...

Re:Want good programmers? Then pay them. by tezza on Thursday May 03, 2012 @07:56AM (#3923382)
The Press wrongly just focus on one issue at a time. Other problems become side-notes or explicitly ignored.

Any solution to the current focus problem is paraded as a global solution.

But when the long ignored problems finally burst, the Press simply say 'the problem resurfaced' as if it had gone away somehow.

Relating to Austria, their banks were all wiped out lending to Hungary (more than 80% of loans to Hungary were Austrian)

There will be no mention of these zombie Austrian banks until one goes under. (Like Dexia)

---

from 2008:

http://www.economist.com/node/12564042?story_id=12564042

http://www.moneyweek.com/investments/stock-markets/the-plagu...

http://www.moneyweek.com/personal-finance/credit-default-swa...

Re:Want good programmers? Then pay them. by Jabbles on Thursday May 03, 2012 @07:37AM (#3923305)
I think the anger was from Greeks "paying themselves" more than they can afford, and getting into astonishing amounts of debt.

If you can afford to pay 14 months a year it's simply equivalent to an increase in your monthly salary with 12 months, which no one would have a problem with.

Re:Want good programmers? Then pay them. by pmjordan on Thursday May 03, 2012 @07:24AM (#3923254)
I don't know if it's still the case, but bankers used to receive 16 salaries in Austria. The 4 bonus months presumably taxed at the low rate.

That said, it's irrelevant if you get paid 14 salaries or 12 salaries that are 1/6th higher and correspondingly adjusted tax/social security rates. It's just a trick to make the "common man" feel better, just like the employer's share of tax & social security. Employees would be outraged if it all came off their (correspondingly higher) paycheck.

Re:Want good programmers? Then pay them. by tdrgabi on Thursday May 03, 2012 @07:26AM (#3923261)
I guess the workers and officials were getting "bonuses" payed by the state in a bankrupt country.

The developers are payed by companies, they don't get money from your pockets while also working against you.

Re:Want good programmers? Then pay them. by smackay on Thursday May 03, 2012 @09:25AM (#3923711)
It is a similar situation in Portugal with one extra month paid in the summer and one at Christmas. It seems an eminently practical idea so that lower paid people would have ready cash for holidays and Christmas. However given the furore over the apparently profligate peoples of the Mediterranean the government is currently in the process of phasing it out completely.
Re:Want good programmers? Then pay them. by manmal on Thursday May 03, 2012 @11:56AM (#3924368)
Austrian (currently self-employed) developer here. You are mostly right, except that:

Employees are not impossible to fire, that's a myth. There was this big Siemens layoff some years ago where several hundred developer lost their job, just because Siemens decided they are not into software anymore. Also, it is common to pressure people into signing mutual "job quit contracts" (don't know a better word).

How did you get screwed in Austria? I haven't been screwed yet, but I'm not doing much contract work in Austria anyways.

Re:Want good programmers? Then pay them. by pmjordan on Thursday May 03, 2012 @02:36PM (#3925109)
Veering into the crash barrier of off-topicness, but...

How did you get screwed in Austria?

It's hard to overstate how much the SVA (the social security provider for self-employed people) annoys me. The amount you pay them in theory depends on your earnings[1] but in practice how much you pay right now is linked to how much you earned 2 years ago: They assume your profits will go up 8% each year, so for the current year, you pay ((profits 2 years ago * 1.08²) * social security rate) + (difference to what you underpaid 2 years ago).

So if your income is unusually high one year, you pay social security as if you earned the usual amount, which means your profit is artificially high, and thus you pay a lot of tax. Then, 2 years later, you have to pay the difference of what you should have paid in the year you earned lots. Conversely, if you're having a bad year for whatever reason, you have to pay the same amount you usually would, even though you're earning very little. So the worst situation is if you earn a lot and then 2 years later earn very little: you pay lots of tax in the "good" year and get stuffed for social security in the bad year.

This is exactly my situation right now: in 2010 I decided I'd need some runway for our startup so I took on lots and lots of contract work. In 2011 and 2012 I've mostly been working on the startup, so I'm only doing maintenance work for existing contract customers. All of my contract revenue this year has been going straight into the SVA. The SVA bill is more than the rest of my cost of living put together.

And yes, back in 2010 I did try to increase my SVA payments because I knew this would happen, but they wouldn't let me.

Of course employees simply do not have this problem: even if their income fluctuates like crazy (seasonal workers etc.), every month they pay a percentage of the exact amount they earned. Yet self employed people are the ones whose income is most likely to fluctuate.

[1] 7.5% for health insurance, ~17.5% for pension, ~1% other - so this is quite a lot of money, and unlike tax there's no free earning threshold. In fact, it's the opposite: if you earn below around €550 p.m., you owe as much as if you earned €550.

Re:Want good programmers? Then pay them. by jakobe on Thursday May 03, 2012 @05:11PM (#3925831)
I'm in Austria too. My accountant told me that it is possible to just pay higher SVA payments. So if you assume that you will have to pay 5000/year, but they only charge you 3000/year, you just pay them an extra 2000 EUR on your last payment. And as long as you pay that before the end of the year, can deduct that from your taxes.
Re:Want good programmers? Then pay them. by pmjordan on Thursday May 03, 2012 @05:41PM (#3925955)
Interesting. I specifically asked at both the SVA and the Finanzamt and they both told me it wasn't possible. Well, too late for me, unfortunately, I got screwed in 2010 and I'm about to shut down my business in Austria anyway.
Re:Want good programmers? Then pay them. by jakobe on Thursday May 03, 2012 @06:00PM (#3926024)
I think the trick is to just pay the SVA the extra money without asking questions and then hope that the Finanzamt accepts it. But I'm not a specialist and I haven't tried it yet; but I will try it this year.
Re:Want good programmers? Then pay them. by pmjordan on Friday May 04, 2012 @10:32AM (#3928518)
Strange procedure, but I wouldn't be surprised if your accountant knew more about this than the bureaucrats at the Finanzamt or the SVA. In my experience, the former are friendly but useless and the latter are hostile, inefficient and useless. In any case, good luck with it!
Re:Want good programmers? Then pay them. by Joeri on Thursday May 03, 2012 @03:13PM (#3925272)
Sounds like you're just given a payment delay of 2 years, which seems a pretty good deal to me. Put the money in a bank account for 2 years, let it earn interest, then pay it down.
Re:Want good programmers? Then pay them. by pmjordan on Thursday May 03, 2012 @03:53PM (#3925442)
It's a terrible deal because you have to pay your top marginal income tax rate (37.5-50%) of your "good" year on that money that isn't even yours, which you otherwise wouldn't, as social security payments are tax-deductible. In the "bad" year 2 years later, you obviously can deduct it, but as your earnings are low, you're in a lower tax band or even wouldn't be paying any tax at all (which is the case for me). So in my case this loses me thousands of Euros.

In "down" years you're also forced to lend them money that you'll get back 2 years later. I fail to see how this is a good deal.

Even if the tax bands happen to coincide, it's pretty hard to find even fixed-term savings accounts that earn more interest than inflation these days. Even my pension fund is actively losing money. (of course I don't have a choice about paying into it)

Re:Want good programmers? Then pay them. by spullara on Thursday May 03, 2012 @12:11PM (#3924426)
A layoff is not considered being fired.
Re:Want good programmers? Then pay them. by manmal on Thursday May 03, 2012 @01:04PM (#3924679)
It is not considered being fired by you ;) This particular layoff was a strategic decision - and a bad one too, they are now advertising in TV that Siemens is a good place for IT folks.
Re:Want good programmers? Then pay them. by jessriedel on Thursday May 03, 2012 @01:48PM (#3924886)
The point is that the existence of layoffs does not rebut the claim that programmers cannot be fired (individually) in Austria.
Re:Want good programmers? Then pay them. by pmjordan on Thursday May 03, 2012 @04:15PM (#3925562)
Or the claim that it's a financial burden. Layoffs involve expensive severance payments.
Re:Want good programmers? Then pay them. by RobertKohr on Thursday May 03, 2012 @10:18AM (#3923931)
I think you might have got to the the main issue.

It is not like there is a cultural pressure to keep the pay for a programmer down, because that would break down quickly if there are a lot of positions not being filled.

I somehow doubt that the value earned by hiring a programmer is much less than elsewhere.

So really that leaves only some other operator that is messing up smooth market operations, and that is the extra costs in hiring.

Your last point is the strongest. Would you hiring a programmer if it was impossible to fire them. If you were a programmer that knew he couldn't be fired, what would your output look like.

Re:Want good programmers? Then pay them. by danssig on Thursday May 03, 2012 @11:29AM (#3924240)
The market is notoriously inefficient in hiring/working because companies work so hard to keep prices (salaries) hidden so one has a really difficult time knowing what the market value of a given skill is.