If there were one course that could supercharge every engineering education, it wouldn’t be about compilers, logic gates, or algorithmic complexity. It would be “Industry Realities 101,” because frankly, we’re not teaching the crucial practicalities of the professional world, leading to a lot of unnecessary frustration and struggle for young engineers. Consider this post your README.txt for navigating your early career as an engineer. The aim is to boost your career happiness by bridging the gap between academic learning and the often unspoken realities of how the “real world” of tech actually operates. It took me about a decade and a fair amount of bumps and bruises, starting as a “reasonably bright engineer with self-doubt and zero business acumen,” to piece together these insights. While this isn’t the definitive career bible, hopefully, it will offer more practical value than what your college career center might be missing.
The Undeniable Truth: 90% of Programming Jobs are in Line of Business Software
Let’s start with Economics 101: the value of anything, including your skills as an engineer, is determined by supply and demand. Let’s first consider the demand side of the equation. The vast majority of software isn’t the kind you buy in a box, download online, or find on an app store. Most software is, to be blunt, boring. It’s custom-built, internal applications within organizations, quietly powering every aspect of the global economy you can imagine. It tracks company spending, streamlines supply chains, assists accounting departments with financial forecasting, aids in product design, calculates insurance premiums, flags suspicious transactions for fraud prevention, and on and on. Software solves business problems. Often, this software is technically simple and, let’s be honest, mind-numbingly dull. Take, for example, an online expense reporting form used internally within a company. In a company with 2,000 employees, this simple system could save 5,000 work-hours annually (at an average fully-loaded cost of $50 per hour) compared to manual, paper-based processes. That translates to $250,000 in yearly savings. The crucial point for the company isn’t whether the expense form is a cutting-edge, technologically advanced marvel. It’s whether it saves money or boosts revenue.
Of course, there are companies that develop software for external customers, which probably aligns more with what you envision when you think about “software.” However, it’s less likely you’ll initially find yourself working at one of these, unless you actively pursue that path. Even within these customer-facing software companies, many programmers don’t directly work on the products users interact with.
Engineers are Hired to Drive Business Value, Not Just Write Code
Businesses, while sometimes swayed by irrational or political factors, are fundamentally driven by increasing profits and cutting costs. In well-run companies, recognition and advancement are typically awarded to those who demonstrably contribute to these financial goals. The manager hiring a new engineer isn’t doing so out of a fondness for tech enthusiasts. They are hiring because they believe that engineer will contribute to projects that will ultimately increase revenue or decrease expenses. Creating elegant code isn’t the primary objective. Solving intricate technical puzzles isn’t the primary objective. Writing flawless, bug-free code isn’t the primary objective. Using the latest, trendiest programming languages isn’t the primary objective. Adding revenue. Reducing costs. These are the ultimate goals that drive your professional value.
Peter Drucker, a management guru whose ideas are gospel among decision-makers, coined the terms “Profit Center” and “Cost Center.” Profit Centers are the parts of an organization that generate revenue: partners in law firms, sales teams in software companies, finance professionals on Wall Street. Cost Centers are, essentially, everyone else. You should aim to align yourself with Profit Centers because they offer higher salaries, greater respect within the organization, and more career opportunities. It’s not complicated to identify Profit Centers. Even a sharp high school student can usually pinpoint the Profit Center of a business from a short description. If you want to thrive, work within or closely with these Profit Centers. If you can’t initially, either seek employment elsewhere or strategically plan a transfer internally once you’ve joined the company.
Engineers, specifically, often find themselves in highly paid Cost Centers, which triggers the cost-optimization instincts of MBAs. This leads to initiatives like outsourcing, often framed as: “Let’s replace these expensive Cost Center engineers, who do something we vaguely understand and need, with cheaper engineers in countries with lower wages.” (Quick aside: Don’t see outsourcing as a major career threat if you grasp the core principles in this guide.) No company ever outsources its Profit Centers. Suggesting that would be the punchline of an MBA joke. It’s akin to suggesting replacing your version control system with a stack of floppy disks.
Don’t Introduce Yourself as “Just a Programmer”
“Programmer” carries the connotation of a “high-cost, interchangeable cog who types cryptic code into other cryptic code.” If you identify as just a programmer, someone is already brainstorming ways to automate or outsource your role. Consider Salesforce, often perceived as a Software as a Service (SaaS) company by engineers. Their marketing message to businesses is essentially “No Software,” which translates to “You know those programmers maintaining your internal systems? With Salesforce, you could eliminate a significant portion of them and boost your bottom line.” (There’s nothing inherently negative about this, by the way. Many businesses are in the business of improving efficiency, sometimes through automation and workforce optimization. If you disagree with this, perhaps a different career path would be more fulfilling.)
Instead of programmer, define yourself by your accomplishments for previous employers in terms of revenue increases or cost reductions. If you’re early in your career and haven’t had those opportunities yet, highlight skills and experiences that demonstrate your potential to drive revenue or cut costs, or present ideas for how you could do so.
Many highly compensated professionals write code extensively but don’t define themselves primarily as “programmers.” Quantitative analysts (“quants”) on Wall Street are a prime example. They leverage computers and advanced mathematics to make critical, high-stakes decisions faster and more effectively than humans alone, and the result of these decisions is often “our firm made billions of dollars.” Successful quants can earn more in bonuses in a single good year than many similarly talented engineers might earn in a decade or even a lifetime.
Similarly, while Google might seem like a programmer-centric company, there’s a hierarchy. There are general programmers, and then there are those directly responsible for even minor (1%) improvements in AdWords click-through rates. (These improvements are demonstrably worth billions of dollars.) I recently came across the webpage of someone whose professional summary was simply: “Wrote the backend billing code that 97% of Google’s revenue passes through.” He’s now an angel investor – a polite term for “extremely wealthy.”
Your Chosen Tech Stack Doesn’t Define You
I recently asked on social media what young engineers wanted to know about their careers. A recurring question was how to decide which programming language or technology stack to focus on. The answer is: it’s not that critical.
Does a Java programmer earn more than a .NET programmer? Anyone defining themselves as solely a “Java programmer” or a “.NET programmer” has already limited their career potential. First, they are identifying as “a programmer” (which, as discussed, is limiting). Second, they are restricting their appeal for a large segment of programming jobs. In the professional world, learning a new language or framework takes a few weeks of focused effort, and within 6-12 months, it becomes indistinguishable from having years of experience. I was heavily involved in backend Java web application development as recently as 2010. Believe me, no one cares about that now. If a company using Python needed someone technically skilled to generate significant revenue, my lack of Python experience wouldn’t be a barrier.
Truly talented engineers are scarce – far scarcer than opportunities to utilize their skills. It’s currently a seller’s market for engineering talent across most sectors. The cybersecurity firm Matasano (now NCC Group) was known for its Ruby expertise. But if you were a strong engineer without Ruby experience, they would still hire you. (A strong engineer, again, is defined by a proven track record of – repeat after me – increasing revenue or decreasing costs.) Fog Creek (now Glitch) heavily used the Microsoft stack. I couldn’t even spell ASP.NET correctly, yet they would have hired me.
Some companies have outdated HR practices where lacking a specific buzzword on your resume can be a disqualifier. You probably don’t want to work for them. But if you do, it’s relatively easy to add that buzzword to your resume. Invest a few evenings or weekends to learn the basics, or even better, strategically choose a project at your current job to incorporate that technology, thereby advancing your skillset and career prospects simultaneously. Want to learn Ruby at a .NET-centric company? Propose and implement a small, impactful project using Ruby. Suddenly, you’re a “professional Ruby programmer” – you’ve coded in Ruby, and you’ve been paid for it. (Sound absurd? I did this at a Java shop. The small Ruby project generated $30,000 in value for the company. My boss was, unsurprisingly, pleased and never even asked what technology was used to create it.)
Your Colleagues and Managers Aren’t Necessarily Your Friends
You’ll spend a significant amount of time with your coworkers. You may develop genuine friendships with some, but realistically, in a few years, you’ll likely move on. While maintaining professional courtesy is important, don’t expect deep, lasting friendships with everyone you work with. They will generally treat you similarly. Be a good person to everyone you encounter – it’s ethically sound and beneficial for your professional network – but don’t operate under the illusion that everyone is your close friend.
For example, in a job interview, even if you connect with a friendly 28-year-old interviewer who seems like a slightly older version of yourself, remember it’s a transaction. You’re not friends; you’re a potential asset they are trying to acquire for the company at the most favorable terms. The casual conversation about video games is simply building rapport, but they will (perfectly ethically) attempt things your actual friends would never do, like negotiating your salary down or subtly pressuring you to commit more time to work than you might prefer. Similarly, some colleagues – again, perfectly affably and ethically – will suggest actions that prioritize their interests over yours, from “I should get recognition for that project you led” (perhaps subtly implied) to “We should pursue this initiative that benefits my career goals more than yours.” Don’t be surprised when these dynamics emerge.
You Dramatically Overestimate the Average Skill Level of Your Competition
Many individuals currently employed as senior engineers struggle to implement the basic FizzBuzz test. Read the linked article and let that sink in. Key takeaway: you are likely more qualified than you think for that “dream job” you believe is out of reach. Companies hire exceptional talent, but they also hire individuals with average skills.
“Apply Online, Submit Resume, Interview, Get Offer” is the Exception, Not the Rule
Most desirable jobs are never publicly advertised, just as most top-tier candidates aren’t actively searching on public job boards (see here). Information about open positions spreads primarily through personal networks, often facilitated by informal conversations and connections. A hiring manager realizes they need to fill a role. They mention it to their network of friends and professional contacts. Someone in their network knows someone – a family member, a former classmate, someone met at a conference, a previous colleague, etc. Introductions are made, meetings occur, and a preliminary job agreement is reached. Only then does the formal resume submission, HR process, and official offer come into play.
This is especially true for the most sought-after positions. “First engineer at a successful startup” holds significant appeal for many engineers, and virtually none of these positions are filled through standard online applications, partly because very early-stage startups often don’t have established HR departments. (P.S. Being the very first employee at a startup might not be ideal. Aim to be a later co-founder instead.) Want to work at Google? They have a formal referral process for candidates recommended by current employees. (They also have informal, even faster ways for employees who strongly recommend someone to expedite the process. One extreme example: acquire the company where your preferred candidate works. When you have billions of dollars available, you have many unconventional options for solving problems.)
There are several reasons why much hiring happens through informal networks. Publicly advertised job postings often get flooded with hundreds of resumes, many from candidates who are completely unsuitable for the role. Also, many companies are so ineffective at hiring that without a personal connection and strong recommendation, they risk accidentally hiring someone who can’t even pass FizzBuzz.
Networking: It’s Not Just for TCP Packets
Networking, in a professional context, simply means a) meeting people who could potentially help you in your career (or vice versa) and b) making a positive impression on them.
There are numerous avenues for networking. Industry events like conferences and symposia that attract both academics and industry professionals are excellent. User groups are another valuable option. Keep in mind that user groups often attract a different demographic than industry conferences, so tailor your approach accordingly.
Make a conscious effort to assist others. It’s ethically sound, and people remember those who have helped them or their connections. If you can’t directly assist someone but know someone who can, connect them with the appropriate person and offer a positive referral. Done effectively, this creates two individuals who are grateful to you and more likely to reciprocate in the future.
You can network online (extensively, in fact), but there’s something about in-person interactions that creates stronger connections. I’ve met many people online who I’ve later met in person. A physical handshake significantly strengthens a relationship, even when the initial online interaction was professionally impactful, like “I gave them valuable advice that made them a lot of money.” Definitely blog and engage in relevant online communities like Hacker News, but also prioritize attending in-person meetups and events in your field.
Academia Isn’t Always a Reflection of the Real World
Your GPA is largely irrelevant in industry (with one notable exception: some multinational advertising firms still place undue emphasis on it). To the extent GPA matters, it primarily determines whether your resume gets shortlisted for initial interviews. However, as you’re learning in this guide, relying solely on resume submissions isn’t the most effective way to secure interviews. Building connections and networking are far more impactful. A slightly lower GPA won’t significantly hinder your career if you’re proactive in networking.
Your specific major or minor is also generally unimportant. Most industry decision-makers couldn’t differentiate between a Computer Science major and a Mathematics major, even if they tried. I once stressed over a minor academic issue that threatened my ability to graduate with a Bachelor of Science in Computer Science, as my advisor insisted it was more prestigious than a Bachelor of Science in Computer Science. Academia often focuses on such subtle distinctions. The professional world generally doesn’t.
Your professors are experts in the academic job market (which is notoriously competitive and often inefficient in engineering and even more so in fields like English). However, their understanding of industry realities can be limited or outdated. For instance, they might encourage you to pursue advanced degrees because a) it aligns with academic career paths and b) graduate students provide valuable research assistance at relatively low cost. Remember, market salaries for individuals with research capabilities in your field are in the $80,000 – $100,000+ range. That’s a significant investment in ramen noodles.
The professor overseeing my research project offered me a spot in his lab, a tuition waiver, and a meager $12,000 annual stipend if I committed 4-6 years to his research. This might be appealing only if you’re a recent immigrant from a lower-wage country and need visa sponsorship.
If you genuinely appreciate the academic environment, that’s perfectly valid. You can experience aspects of it without being in academia. Put on a backpack, and you can freely walk into almost any building at any university in the US. Backpacks are far less expensive than pursuing a career in academia. You can pursue intellectual pursuits in industry as well – often with less bureaucracy and significantly better compensation. You can even publish in academic journals if that’s a personal goal. (After gaining experience outside of academia, you might question whether “Published In A Journal” is truly more personally or societally impactful than, say, “Wrote A Blog Post And Shared It With Smart People.”)
How Much Money Do Engineers Earn?
This is the wrong question to ask. The more relevant question is: “What kind of compensation packages are routinely offered to engineers?” because salary is just one component of motivation. The answer, unfortunately, is “It varies widely.”
Generally, larger companies offer more comprehensive compensation (higher salaries, better benefits) than startups. Engineers perceived as highly valuable command higher salaries than those perceived as less valuable. Senior engineers earn more than junior engineers. Engineers in high cost-of-living areas earn more than those in lower-cost areas. And crucially, individuals skilled in negotiation earn more than those who aren’t.
We are culturally conditioned to avoid discussing salary openly. This isn’t universal. In many cultures, professional settings are perfectly acceptable contexts to discuss compensation. (In some cultures, revealing your exact salary to a new acquaintance or even a second date might be considered normal.) If I were a Marxist theorist or a conspiracy theorist, I might suspect that this cultural aversion to salary discussion benefits employers more than employees. Before discussing salary with a potential employer, research typical salary ranges for similar roles at that company. Connect with people working there (LinkedIn, professional networks, etc.) to get realistic salary insights.
Engineers are typically offered a package of benefits. In the US, health insurance (traditionally employer-provided with the employer covering most or all costs) and retirement plans are significant. Retirement plans often involve employer matching contributions to a 401k up to a certain percentage of your salary. This employer match is essentially free money – always maximize your contributions up to the match limit. Invest in broad market index funds and let it grow over the long term.
Other perks like “free soda,” “catered lunches,” “free books,” are more symbolic than financially significant. They are social signals indicating company culture and values. When an employer offers “free soda,” it signals something specific about their workplace, their expectations of employees, and how they intend to treat them. (It might signal “I’m going to subtly incentivize young, less experienced engineers to see this job as ‘fun’ with inexpensive perks while potentially underpaying them in actual compensation and encouraging unhealthy habits.” And yes, I do enjoy soda occasionally.) Interpret these social signals – a company that emphasizes employee development and education might be a great place to work – but don’t sacrifice significant compensation for perks you could easily afford yourself.
How Do I Improve My Negotiation Skills?
This could be an entire post in itself. Here’s a concise summary:
a) Remember you’re selling solutions to business needs (increased revenue or reduced costs), not just programming skills or your personal qualities.
b) Negotiate assertively but professionally, with confidence. Your counterpart is likely doing the same. Aim for a mutually beneficial agreement, not just accepting every offer presented.
c) “What’s your current salary?” is often employer-speak for “Give me justification to pay you less.” Respond strategically, focusing on your value and desired compensation range, not your salary history.
d) Always be prepared to counteroffer. Be flexible and consider negotiating on aspects beyond just salary, such as vacation time, benefits, or professional development opportunities.
e) Discuss salary only after you have a strong indication they intend to hire you if mutually agreeable terms can be reached. This is late in the process, after they’ve invested time and resources in interviewing you, not early in the interview stage. Remember, rejecting a candidate at this stage is costly for them, so they are likely to be more flexible on compensation to finalize the hire.
f) Invest in learning negotiation skills. Many excellent books are available on the topic. “Getting to Yes” is a classic. It’s remarkable that negotiation skills can significantly impact your earnings year after year throughout your career, yet many engineers prioritize mastering niche technologies over developing these crucial soft skills.
How to Value Startup Equity
Roll a d100 dice. (Not a tabletop gamer? Use a random number generator from 1 to 100.)
0-70: Your equity grant is worth nothing.
71-94: Your equity grant provides a lump sum roughly equivalent to the higher salary and better benefits you forfeited by joining the startup instead of a larger, established company.
95-99: Your equity grant is a life-changing sum of money. You won’t feel like the wealthiest person you know – many of your startup colleagues will likely be wealthier due to earlier equity grants – but your family will finally stop questioning your career choices and wishing you’d pursued a more “conventional” path.
100: You joined the next Google, and you are now incredibly wealthy. Congratulations.
Sharp-eyed readers will notice that rolling a 100 on a d100 or rand(100) is statistically impossible.
Why the Cynicism Regarding Equity Grants?
Because you likely overestimate both the probability of your startup’s success and the percentage of ownership you’ll actually receive if it does succeed. Research “dilution” and “liquidation preferences” on resources like Hacker News or Venture Hacks. Remember that there are individuals who are far more skilled at negotiating financial deals than you are at programming. Imagine the potential impact on a program if hundreds of millions of dollars were at stake.
Are Startups a Good Career Move for Recent Graduates?
The most probable outcome is that you’ll work incredibly hard for a couple of years, the startup will fail, and you’ll be unemployed, seeking another startup role. If your long-term goal is to work at a startup within a few years of graduating, you could also work at a larger, established company for a couple of years, save some money, gain valuable experience and industry contacts, and then make the startup transition later, perhaps even founding your own.
Working at a startup primarily exposes you to other individuals in the startup ecosystem. Many of them might not be in a position to hire you in a couple of years. Working at a large corporation, you’ll network with professionals in larger companies in your region. Many of them will either be in hiring positions themselves or have connections to hiring managers in other established companies in a few years.
So, Would You Recommend Working at a Startup?
Working at a startup is a viable career path, but more fundamentally, it’s a lifestyle choice. It’s similar to choosing a career in investment banking or academia. These are distinct lifestyles. Many people will try to sell you on these lifestyles as being in your best interest, often for their own reasons. If you genuinely enjoy the startup lifestyle, go for it. If you’re attracted to specific aspects of it, remember that many of those aspects are available in other environments. For example, if you want to work with cutting-edge technology but also value work-life balance, you can find opportunities to work on cutting-edge technology at many large corporations.
(Yes, really. If it adds business value, large companies will invest in innovation. They also invest in “boring” line-of-business applications, just like startups do – startups are just often better at marketing even mundane applications as exciting and innovative. The opening scenes of the movie “The Social Network” brilliantly portray making a relatively simple application seem incredibly revolutionary, while the later parts delve into interpersonal drama.)
Your Most Crucial Professional Skill is Communication
Remember that engineers are not hired just to write code; they are hired to generate business value. The most important attribute that lands you jobs and advances your career is the ability to convince people that you will create value. This isn’t always directly correlated with your actual technical ability.
Some of the most technically brilliant programmers I know are remarkably poor communicators. People are a) less likely to want to work with them and b) tend to underestimate their value-creation potential because communication is how we assess competence and contribution. Conversely, people often overestimate my programming skills primarily because a) I can demonstrably code and b) I communicate effectively in writing and speaking.
(Early in my career, I would have rated my programming skills as “slightly below average.” I later realized my perception of the skill distribution was skewed, that technical prowess isn’t the sole factor valued in the industry, and that excessive modesty is detrimental to career advancement. Now, if asked about my programming skills, I’ll highlight projects where I’ve developed systems that helped millions of children learn to read or demonstrably generated millions in revenue for companies. Where I fall on a hypothetical programming skill bell curve is irrelevant to anyone, including myself.)
Communication is a skill that can be developed. Practice it: you will improve. A key communication sub-skill is the ability to quickly, concisely, and confidently explain how you create value to someone who isn’t a technical expert and doesn’t have a pre-existing reason to favor you. If, when attempting this explanation, technical jargon keeps creeping in (“Reduced 99th percentile query times by 200ms by optimizing indexes on…”), eliminate the jargon and try again. You should be able to explain your work and its value to an intelligent eight-year-old, the CFO of your company, or a programmer in a completely different specialization, using the appropriate level of abstraction.
You’ll Often Be Involved in Enterprise Sales and Other Non-Engineering Tasks
Enterprise Sales involves engaging with large organizations to persuade them to invest significant sums (six or seven figures) in systems that will boost their revenue or reduce their costs. Every job interview you attend is a form of Enterprise Sales – you are selling your potential value to the company. Interpersonal skills, relationships, and effective communication are paramount; technical details are often secondary.
When collaborating with colleagues and advocating for your ideas and solutions, you are also engaging in internal “sales.” If your job description includes “getting things done,” then persuading people to support and implement your ideas is a core skill. Invest time and effort in developing these skills. This includes writing clear and persuasive memos, emails, and presentations. It means understanding how to build a business case for a technical initiative. It also means recognizing that sometimes, you will need to make technical compromises to achieve business objectives, and that this is often the right decision.
Modesty is Not a Career-Enhancing Trait in Business
Many engineers struggle with self-confidence (myself included at times). Many also come from backgrounds where modesty about accomplishments is culturally valued. However, in American business culture, excessive modesty is often misinterpreted as a lack of confidence or competence. The ideal professional demeanor in interviews, interactions, and your overall career is closer to “restrained, confident professionalism.”
If you’re part of a successful team, the appropriate response isn’t “I owe it all to my team,” unless your position is so senior that everyone understands you’re being deliberately modest. Aim for something like: “It was a privilege to support my team by leading our efforts in [your area of specialization].” Practice saying this convincingly. You might feel like you’re exaggerating your contributions. Don’t. Someone who claims to be a “Production Optimization Lead” while working as a sandwich artist might be overstating their role. You are an engineer. You create valuable solutions that improve people’s lives and business outcomes. If you were the lead on the database for a critical project, then absolutely you led the database effort, which was crucial to the project’s success. This is how professional recognition works. Feeling uncomfortable with this is like a baseball player feeling guilty about stealing bases – you’re not morally superior; you’re just playing the game suboptimally.
All Business Decisions Are Ultimately Made by Humans, Not Algorithms
People are people. Social skills are crucial. People often support suggestions from individuals they like and trust, even if objectively better alternatives exist. People are favorably inclined towards those they have shared meals with. (The business book “Never Eat Alone” might be worth reading, despite its slightly misleading title.) People tend to favor those they perceive as similar to themselves. (This can be positive, neutral, or biased. Acknowledging this human tendency is the first step to leveraging it ethically and professionally.)
Personal presentation also matters significantly. People are surprisingly easily influenced by factors like dressing appropriately, maintaining a professional appearance, and speaking confidently. A business suit might cost about the same as a decent computer monitor. You might not need it frequently, but when you do, you’ll be very glad you have it. For example, if I visit City Hall in casual attire, I’m often treated like an awkward, inexperienced young person. Wearing a suit, I’m treated like the CEO of a multinational corporation. I am, in fact, the CEO of a multinational company, but I can strategically emphasize different aspects of my persona depending on the situation and desired outcome.
(Some familiar with my business might argue with my description of it as a “multinational company” in the traditional sense. It’s a conversational tactic. If you think people will be upset by this slight exaggeration, some people also dislike business suits. That doesn’t diminish their practical value in certain situations. Adapt your approach to the context. Technically accurate answers are essential when dealing with serious matters, like preventing potential immigration issues, by the way.)
Ultimately, Career Success Isn’t Everything for Life Happiness
Talk to older, experienced individuals, or trust social science research: family, personal beliefs, hobbies, and relationships generally contribute more to overall life happiness than career achievements and financial wealth. Prioritize accordingly. Your career is important, and it might seem like the most critical aspect of your life right now, but that perspective will likely evolve over time. Work to live, don’t live to work.
