Salaries and attitudes to personnel in Russian IT as a reflection of the end of the era of the “middle class”

Salaries and attitudes to personnel in Russian IT as a reflection of the end of the era of the “middle class”

Salaries and employee attitudes in Russian IT as a reflection of the sunset of the “middle class” era.

For the league of laziness: “9 out of 10 Russian employers experience a terrible shortage of highly qualified low-paid workers, but Yuryev Day for those who remain will not be officially introduced in any way, this upsets the efficient owls.”

This note is a prequel to the series of articles “The Nash Equilibrium or why this music will last forever” and the response to your post simply became too much

Historical milestones.
In the history of labor management literature, especially in Russia, several key points can be identified, such as:
1592 year: under Tsar Ioann Vasyliovych… the peasants had free exit, and Tsar Fedir Ioannovich, at the persuasion of Boris Godunov, not listening to the advice of the oldest boyars, ordered the exit of the peasants and, who had a few peasants at that time, made books
1702-1703 year. Attachment of peasants to the Nevyansk and Kamyansk factories in the Urals (see S. S. Smirnov. STATE REGULATION OF THE LABOR OF CONDUCTED PEASANTS AT THE URAL MINING PLANTS IN THE 18TH EARLY 19TH CENTURY)
1911 year. The book “The Principles of Scientific Management” is published, which shows what needs to be done so that a cow eats as much or a little more, but gives 2-3 times more milk.
1962 year. In Novocherkassk, explanatory work is being carried out.
1975 year. The book “The Mythical Man-Month” is published, where the author tries to show that 9 women, even with an effective manager, will not give birth in a month.

Other literature published since that time, especially Russian, boils down to how to promise an employee a bonus, but under any circumstances not to give it. The most frequently applicable practices are listed – we are a family, we are a team, whoever comes with someone else’s offer – must repent and be deprived of bonuses and promotions forever, regardless of inflation, market conditions and so on. The last option for dealing with employees who – see – decided to show someone else’s offer, is perfectly revealed in Polina Vostrykova’s article “How to get a promotion. A view through the eyes of a manager on the Kaspersky Lab blog.

Changes in the labor market of the Russian Federation and the movement of personnel, starting from 2013
Why was 2013 chosen? Because it was in 2013 (April 18, 2013) that Dusty Robbins (Dusty Robbins – Director, Software Product Management, Intel) flew to Moscow to visit Skolkovo and participate in events. He certainly took part in events, only in which ones.

By this time on the market wages The following factors acted in the Russian Federation:
1. The beginning of retirement or other cessation of active activity of participants who started working in the USSR, who in 2013 reached, conditionally, 50. From 1963 and older. 25-year-olds born in 1988 were supposed to replace these employees, but the failure in the birth rate and personnel training, starting in 1987 (1986 – 5611 births, 1987 – 5599 births), led to the fact that there was no one to replace them. That is, cheap, humble, old Soviet engineers of all kinds began to run out, and the new ones who were cheap, submissive and used to working in one place for 10-20-40 years were not brought up and taught how to work well for one country, one party and one Soviet people. Especially for a small price and a photo on the honor board.
2. The most active left for the countries of developed capitalism, the less active moved from Russia to Moscow, and tried to get a job in representative offices of foreign companies. Firstly, the pay was better there, secondly, the management was drastically different from Russian big business. Especially in contrast to who and how managed personnel policy in the structures of the Russian Federation.
3. There were rumors that a number of large Russian businesses had made tacit agreements among themselves not to engage in bribery in Moscow. In the regions, these were not rumors, but agreements between large employers, and in monocities there was nothing to conclude.

The situation began to change in 2014, and changed dramatically in 2022. When part of the citizens went with foreign business, and part decided that birches and glasses in the river are what is needed. Some of those who remained were able to convince with fun mass starts in September 2022, but some remained.
Investigation – pressure on salaries from Western employers has almost completely disappeared, the labor market has turned into a monopsony or oligopsony – when there is one largest employer, in the Russian Federation it is the state, with several active state agents, but still state organizations – Oschadbank, Rostelecom. To what extent are the state’s relations with Megafon, Yandex, Beeline and MTS (more precisely, the state’s relations with AFK Sistema) – readers will answer for themselves.

In addition, it is necessary to note several people who were deceived by regular sellers of successful success. It was expected that training would be expensive, high-quality, in the absence of motivation – the jury would be harsh, but it turned out that you are buying a story about how to try to deceive HR and get to the first technical interview. Out of three. It was expected to receive at least the level of June in six months of unstressed training, which level in the institute is killed with a stick to sufficiently motivated citizens in only three years. It turned out that it works out well if an intern \ trainee. And this with a (temporary) surplus on the market of good middle-level personnel left after the departure of Western (and Eastern, by the way) companies.

I will go to the middle class.
From the west it was broadcast, in various forms, that almost any IT worker is a modern middle class, with its own middle class habits and norms. But at the time of the last changes (2013-2022), this was no longer the case. The Western (more precisely, American) middle class was born during the American industrialization of the 20s and strengthened after the Second World War, during the reign of Pax Americana (as a brand of new empire). If the annual salary of a qualified worker in the 50s was 4,000 dollars, the cost of a house was 5,000 and a car was 1,500 – 2,000 – the future was simple. See prices in the article This Is How Much Classic Cars Cost in the 1950s-and What They’re Worth Today. Wages – In 1957, the decade for the year, full-time workers over the age of 14 were $4,713 for men and $3,008 for women. Source: Occupational Outlook Handbook, Table 1, page 25. Prices and Wages by Decade: 1950-1959

Since then, the value of houses, cars and other capital investments has increased (in %) much more than the value of labor over the same period. The Western middle class began to disintegrate into a group of the super-rich, and “like everyone else.”
The same phenomena began to appear (estimated in 2008) in the Russian Federation, when the cost of a square meter and life exceeded all wage increases, inflation, etc. At the same time, the processes of improving labor efficiency in the Russian Federation have led to a decrease in requirements for the quality of local personnel. When the equipment, including industrial equipment, no longer needs to be repaired – soldered – reprogrammed, but needs to be changed as a whole, the rest is done from the office or directly by the manufacturer. The attitude towards the line worker began to change (worse) under the slogans “it’s your turn behind the fence” or “let’s hire a hard-working Akhmajon”. At the same time, it became unnecessary, and often impossible for a number of reasons, to produce spare parts for Soviet equipment that was failing, which caused the closure of a number of enterprises adjacent to the factories producing the Great Red Soviet Buttons AZ-5.
In the course of these movements, the newly created middle class, made up of a mixture of boars and aitishniks, turned out to be concentrated mainly in Moscow, a little in St. Petersburg, and dotted with millionaires in Novosibirsk, Yekaterinburg, Rostov-on-Don.
Part of the people, having started to receive 0.5 of the average Western salary, and having bought their first car (but not yet bought an apartment), began to consider themselves the new middle class.

Technical level pressure on class requirements.
In 2005-2006 I had a server rack with as many as 10 servers of 2-6 units, some even with gigabit NICs, and they had 4-8 36GB SCSI drives! Lived a lot. And the memory seems to be 512. Megabytes. That is, approximately 5 gigabytes of memory and 36*6*10 – 2 terabytes of hard drives. I currently have 16 GB of memory in my 3-year-old phone.
To serve the same organization, a server is not needed at all – everything lives on 20 virtual machines and services in the cloud, which dramatically reduces the requirements for line personnel. Which, of course, there is, and has dabbled in IT – knows how to write applications for solving problems in the cloud, and knows how to deliver new certificates from Krypto pro. Is such an employee considered middle class because of belonging to IT?

That is, since 2013:
The requirements for line IT personnel have decreased to the levelfeed the dogs plug in the server and don’t touch anything.”
The middle class continued to get poorer.
The requirements for the number of line personnel have decreased
2022 added to the market skilled workers who previously worked in organizations that left.

All together created the illusion that the market from the “applicant’s market” has become the “employer’s market”. The attitude towards the employee emerged (and did not disappear) as, perhaps, not yet a disenfranchised serf or a factory peasant, but already as someone who has no right to draw the manager’s attention to any of his circumstances. Only “before” it translated to line staff and middle engineering staff everywhere except IT – and now IT has been equated with “engineering staff”. In the conditional “before”, an IT specialist, even with an average qualification, shrugged his shoulders, updated his resume and in a month had a salary of +20% in a new place. In “now” – employers immediately write that they need not just cheap and qualified, but also loyal, or rather, submissive. Not those who vote with their feet: not after the return to still Soviet management practices in the style of Novocherkassk – 1962, not after free revisions due to management mistakes, not after salaries that do not increase even according to official inflation, not after the announced “whoever comes to us with a job can don’t come anymore, he will receive his work with payment.”

This, which used to be the Russian middle class, has become so unnecessary that somehow the magical power of the brand, better maintenance practices, and generally treating it differently than the hard-working Akhmajon are not needed.

In this regard, it is interesting
to watch how people come in comments to the article with statementsat the release event“, or “and in the west it’s the same, no freedom, so I’m better here, with birches and perch. Yes, I could, of course, but there will be a downshift“. There are also such scenarios. When you live in Moscow, you receive income from an apartment that seems to be a woman’s house, you work in some position, not at the level of a specialist, but at a level higher or simply by acquaintance, but you don’t mess around much. With a certain salary, and according to the burger index, having your inherited housing and other income, you fall into the top 10% of the population of Russian citizens. When moving, the house will have to be rented, the wife will not work, medicine will be more expensive, and in general we will have to move somehow, and it will be 3-7 years before citizenship, and soon (tomorrow, or maybe in a year) we will live in the Russian Federation, as before, even better , it cannot be that it will not get better, and I will definitely not be replaced by a foreign specialist in a year or two.

Finally
I have not seen in the Russian IT (community) for three years – a request for a public discussion of something and a public examination. Russian blogs, which numbered a hundred in 2010, stopped updating, except for individual sites. Those that are updated, for example, the virtualization site in Perdi-Zakam’naya, it’s good if something new is posted once a quarter.
That, the middle subclass from the middle IT class – died or left.

At the same time, it is funny to see the following direction of movement, which finishes the attempts to organize the very remains of the Accidentally Surviving Cadres: 1) Habr (and Pikabu too) falls into the censorship of disagreeable and karmadroks with bots, of course denying this – the rules are the same for everyone, just corporate blogs are more equal . 2) Those who disagree, and those who write unpleasant things, especially about SPO, or about import substitution, are quickly “as if by a community” – why, because it is already formed from those that remained, the dogs quickly get angry – what are the pluses going for , for which karma merges – and they make their sites on the same WordPress. 3) and start promoting their projects and Telegram channels. 4) A wave of hate about the killing telegram begins on Habre. This is not the way to treat the holy telegram, which resisted to such an extent that now the whole thought and Medvedev personally have been imbued with the spirit of prohibition and are writing to it.
The continuation of the cycle “Nash equilibrium or why this music will last forever” will be on another site.

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