Why It's So Easy to Fire Tech Employees These Days

🌈 Abstract

The article discusses the importance of not treating technology and tech employees as commodities, as this can lead to costly and complex issues down the road. The author uses an analogy of using dish soap in a dishwasher to illustrate this point. The article also provides a historical perspective on the tech industry's boom and bust cycles, and offers advice to CEOs and company boards on how to avoid the pitfalls of commoditizing tech talent.

🙋 Q&A

[01] The Importance of Valuing Tech Talent

1. What is the main message the author is trying to convey to CEOs and company boards?

• The author is urging CEOs and company boards to stop treating technology and those who work with it as a commodity, as this can lead to an "elaborate and expensive mess" down the road.
• The author uses the analogy of using dish soap in a dishwasher to illustrate how treating tech as a commodity can create costly problems that are difficult to fix.

2. Why does the author believe it is important to avoid commoditizing tech talent?

• The author argues that when tech talent is treated as a commodity, it leads to a lack of motivation and trust from the very people who will be needed to make sense of the financial and technical landscape.
• The author suggests that this can result in a skeleton crew of tech employees who are not motivated to wait for their turn on the "chopping block" during layoffs.

3. What examples does the author provide to illustrate the cyclical nature of the tech industry?

• The author cites several examples of boom and bust cycles in the tech industry, including the interactive web boom/bust in 2000, the social web coagulation around major players in 2007, the flushing out of tech with real estate in 2009, and the realization that "cloud" just means someone else's server in 2016.

[02] Avoiding the Pitfalls of Commoditizing Tech Talent

1. What are the two "pro tips" the author provides to CEOs and company boards?

• Pro Tip 1: If your best tech people are leaving your company for "different" opportunities, it's a sign that a bust is coming.
• Pro Tip 2: If you've hired expensive tech people who don't have the experience or potential their salaries command, it's also a sign of an impending bust.

2. Why does the author say that the tech employees are not at fault for the boom and bust cycles, but they are the ones who suffer the consequences?

• The author argues that the boom and bust cycles are not the fault of the tech employees, but they are the ones who experience the rewards and consequences of these cycles.
• This makes it easy for tech to be viewed as a commodity, as the tech employees are seen as interchangeable and not valued for their unique skills and experience.

3. What does the author mean by tech employees being "terrible at marketing" themselves?

• The author suggests that tech employees, especially software developers, are often not good at marketing themselves and their skills, which contributes to the perception that they are a commodity.
• This lack of self-promotion makes it easier for companies to view tech talent as interchangeable.