Quote:
Originally posted by Sacamuelas
[B]
The media points out that we are losing all the high paying supervisor level technology jobs. I don't believe we are losing ALL of them. I think we are losing the "fat" that was developed in an overly opportunistic accelerated growth period in that sector during the 90's. I think we had a LOT of overpaid people in the technology sector up until recent times. It became expected for people with a simple little four year college degree in IT to expect a starting job with great benefits and a salary of over 90k/year.
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And they also received up to $100K sign on bonuses, free breakfast lunch and dinner, health club memberships etc. Crazy but true. I was doing some tech recruiting, specifically software sales and engineer types, between 1999 and 2001. The fees were fat and as were the salaries so I made a comfortable living. Part of the dot bomb problem as I saw it, just my uneducated opinion mind you and some conversations with people in the field, was that there was such a rush for the get rich quick piece of this pie that often the funders weren't even asking for solid business plans prior to funding a venture. And many of these young hot shots weren't interested in the more experienced work force who understood the value of a business plan, they had their creative visions but not the ability (or patience?) to implement solid business strategies. The burn rate for one company I dealt with was over $800K per month. Per MONTH! Yet....not enough money was coming in to cover their expenses. They were lucky in a way...the "evil" entity known as Microsoft acquired the company but eventually those I dealt with were expendable.
I would be in favor of companies getting additional perks and incentives for keeping the American worker employed, thus keeping the economy moving and growing. My question is what do you do with...as an example...the middle managers in Manufacturing, Distribution or Production who are downsized due to corporate greed? They don't make exhorbitant money, probably on average $50-70K. How about the average Joe working to support his/her family. These people are losing their livelihood thanks to organizations moving operations or production overseas. The market has been flooded with these people, where do they go to find work? If I had a quarter for every person I've spoken with in the past two years that was "downsized" because their company either outsourced operations, was acquired or just closed down I'd be a rich woman.
Edit to add: The burn rate I referred to was for rent, utilities and the like...it did not include salaries.