Sources Contact Advanced Search Tutorials

An Interest In:

Web News this Week

Search Archive

Some of Our Sources

View All Sources

Help Webnuz

Referal links:

September 28, 2020 06:50 pm

Netflix CEO on Paying Sky-High Salaries: 'The Best Are Easily 10 Times Better Than Average'

Netflix CEO Reed Hastings, writing at CNBC: In the first few years of Netflix, we were growing fast and needed to hire more software engineers. With my new understanding that high talent density would be the engine of our success, we focused on finding the top performers in the market. In Silicon Valley, many of them worked for Google, Apple, and Facebook -- and they were being paid a lot. We didn't have the cash to lure them away in any numbers. But, as an engineer, I was familiar with a concept that has been understood in software since 1968, referred to as the "rock-star principle." The rock-star principle is rooted in a famous study that took place in a basement in Santa Monica, California. At 6:30 a.m., nine trainee programmers were led into a room with dozens of computers. Each was handed a manila envelope, explaining a series of coding and debugging tasks they would need to complete to their best ability in the next 120 minutes. The researchers expected that the best programmer would outperform his average counterpart by a factor of two or three. But it turned out that the most skilled programmer far outperformed the worst. He was 20 times faster at coding, 25 times faster at debugging, and 10 times faster at program execution than the programmer with the lowest marks. This study has caused ripples across the software industry since it was published, as managers grapple with how some programmers can be worth so much more than their perfectly adequate colleagues. With a fixed amount of money for salaries and a project I needed to complete, I had a choice: Hire 10 to 25 average engineers, or hire one "rock-star" and pay significantly more than what I'd pay the others, if necessary. Over the years, I've come to see that the best programmer doesn't add 10 times the value. He or she adds more like a 100 times. Bill Gates, whom I worked with while on the Microsoft board, purportedly went further. He is often quoted as saying, "A great lathe operator commands several times the wages of an average lathe operator, but a great writer of software code is worth 10,000 times the price of an average software writer." In the software industry, this is a known principle (although still much debated). I started thinking about where this model applied outside the software industry. The reason the rock-star engineer is so much more valuable than his counterparts isn't unique to programming. The great software engineer is incredibly creative and can see conceptual patterns that others can't.

Slashdot

Slashdot was originally created in September of 1997 by Rob "CmdrTaco" Malda. Today it is owned by Geeknet, Inc..

More About this Source Visit Slashdot