Except where I live there's a glut of people wanting any job they can find—for a variety of reasons ranging from high levels of immigration to layoffs in the last two years—and willing to accept discount rates because the alternative is being unemployed for another 3 months (New Zealand).
Both the employer and employee know this. So the employee is either foolish or risky enough for asking and gets turned down, or they do actually leave and the employer can hire a new senior engineer at below market rates to accommodate the specific learning they have to do for their new role.
End of story.
Everyone who starts to code after AI has a problem: it's hard to believe you went through the pain and frustration that people often think is required to become a senior engineer. Even if you did, you are in a lemon market with quite a few people who took the shortcut in college. Much better to hire a guy who learned before they could cheat, and then give him the tools to replace the juniors.
I think I see the problem here.
Certainly from a raw game theory kind of analysis, an engineer who can monopolize information and has gained authoritative understanding of the design can be crazy powerful, for better or for worse. If this agent optimizes for good salary, lowish effort and high stability... yes I can imagine a senior engineer who fits the name in rate of technical output, not only pecking order order.
2. Yes, if you only have few people who know how to use a powerful tool, they might have leverage.
3. The supply-demand mechanism is certainly there, but the time scale is never mentioned. It'll take time to remove the unemployed juniors from the pool (maybe they get sucked up into other jobs.) It'll take time for seniors to realize they have leverage. And, of course, the company must not have rehired junior engineers for other reasons (e.g. because the coding tools become so good that seniors are not needed.)
Any objections about "this thesis isn't true; look around you" needs to take this into account. The argument is not that we're there now, but that there's a mechanism to lead there.
1. Declare AI "the future" and mandate its use by all employees.
2. Hire college grads who have no idea how to code without AI.
3. Start PIPing problem seniors for not being "AI-first" enough. Great way to mask the ageism you are doubtless committing.
Right... the alternative is to let the senior engineer go, some work gets reshuffled a bit between other senior engineers, and lowest-priority work is delayed until they hire a new senior engineer.
It's not that the company is held hostage by the senior engineer, sheesh.
> you don’t have options. You pay the 40%, or you lose the person and spend six months (and a recruiter’s fee) trying to find a replacement at market rate, which is probably even higher.
Huh? A replacement engineer is "probably" even more than 140% of what you're currently paying? Then your company has a whole other problem which is that it is criminally underpaying its engineers.
Nothing about this post makes any sense. It's not how companies, employees, or the labor market work.
It never ceases to amaze me that the owner class is so continually shocked that the people who build the value that the owners leverage into growing their fortune might suddenly realize their value.
The entitlement is baked deep into the mindset that there are people who work and people who profit.
In all seriousness even though deep down I know there’s no replacement for experience, I’ve seen a bunch of new people get impressively far with just hacking stuff together. And in the end if you’re making money with that for a long time, isn’t that all that matters to the companies?
Large companies have made it abundantly clear that they are sociopathic entities that consider nothing but profit. They will put on a mask and smile and do the absolute minimum to appear to care about you and retain valuable employees but it's all a show.
It is within the best interests of individual engineers to do the same.
...and the company says "fine, we'll replace you with AI / wanted a layoff anyway".