Dorky trans lady. Occasional vtuber. Quite gay.


Osmose
@Osmose

Thinking again about how every tech company I know of sets their salary ranges by paying Radford or whoever to give them salary data from every other tech company and then peg their compensation to some percentage of the average for a given role, e.g. 15% below market average.

Thinking about how the only difference between that and collusion to depress wages is explicitly agreeing not to raise them, and how the incentives to not deviate even without an agreement are still there and acting on every good capitalist.

Thinking about how tech workers generally don't have access to this data broadly.

Thinking about how salaries in these systems are split up by job names, which are not standardized across companies in a lot of cases, such as when I heard a job role at one of my old jobs was actually being paid like 20% less compared to their peers at other companies despite being told they were being paid 25% more because the person in HR who pulled their data used the wrong job name.


lmichet
@lmichet
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in reply to @Osmose's post:

There's an entire shadow economy of companies and services whose only service is to launder collusion. There's a lawsuit going on right now in DC over a bunch of rental companies using the same app counts as rent fixing.

During my brief tenure with one of the B I G consulting firms, I found that one of the primary services was that the big companies in a vertical (maybe even automotive, where there's literally like 3?) would give us the full data on their costs & expenses, and we would tell them how they compared to "The Market." The Market was the other two companies. Who also purchased the same service, and therefore gave us the same data, which was our data source for The Market.

Everybody involved knew this was how it worked. This was the game they were all playing.

Yuuuuuuuuuuup, Radford Data is the big one in tech that I've heard of, although I didn't realize until checking just now that it's just a product of the parent company, Aon, which also does rewards and other HR / comp functions primarily backed by the data laundering practice you're talking about. Sigh.

This is good info! One thing to note is that BLS data is hard to compare to the data at these firms for a few reasons, such as their data not being granular enough (i.e. they don't split salary ranges up by job level and they have significantly less job titles to choose from) or their data collection being based on surveys vs. direct reporting from a firm's clients.