Cory Hamasaki's DC Y2K Weather Report V2, # 1
"January 1, 1998 - 729 days to go."
(c) 1997 Cory Hamasaki - I grant permission to distribute and
reproduce this article as long as this entire document is reproduced in
its entirety including this notice. I do not grant permission to
a commercial publisher to reprint this in print media.
As seen in
USENET:comp.software.year-2000
http://www.elmbronze.demon.co.uk/year2000/
http://www.kiyoinc.com/HHResCo.html
Please fax or email copies of this to your geek pals, especially those
idiots who keep sending you lightbulb, blonde, or Bill Gates jokes,
and urban legends like the Arizona rocket car story.
If you have a Y2K webpage, feel free to host the Weather Reports.
Don't forget- April 2, 3 1998, Geek Out.
-------------- Welcome 1998 issue ----------
1. On Rates, what else.
2. Washington DC.
3. What can you do.
4. Five Guys COBOL, Inc. revisited.
5. Even MORE DC horrors.
6. The Survey.
7. CCCC
-------- On Rates, what else --------------
I started the WRPs, yes, that's what I call the weather reports, WRPs, to
vent my frustration on the rediculously low rates that programmers, real
code crankers earn. We geeks are too nice, we're basicly shy and
introverted and they are taking advantage of us.
It's getting better, in the last year, there's been about a 50% rate
increase, not as much as I'd like but the trend is right. In 1998, I'd
like to see at least another 50% but lets try for 75%.
What does that mean in real numbers... my sense is in 1995-6, the
journeyman legacy programmer was earning about 50K; some geeks with
specialized skills were earning a little more, 55K, 60K but the average
rate for the average code cranker was somewhere around 50K. In 1997, this
average of averages increased to 75K or so, a 50% increase.
This is not enough. I'd like to see working programmers earning more like
$100K-$125K and superspecialists like VTAM experts, OS/390 systems
internals people earning in the $150-$200 range for a salary. Of course
consultants like me would earn more.
Just as we got our 50% increase last year, we can move rates to a
reasonable level in 1998. It will take more hard work but if everyone does
their share, we can meet our goals.
Here's what we can do. Keep track of rates and salary surveys, when you
find out something such as Oracle is now paying a $4,000 quarterly bonus
(true Washington DC Oracle rumor), pass the word on. Every SQueaLer should
note that down and use it as part of their negotiations.
If someone leaves, get the word out that money was an issue. If they left
disgusted, use their email address to send a copy of the phone list to the
most obnoxious recruited who's ever called you. Start a raid on your own
company. (just kidding.)
Make copies of articles that mention recruiting problems and send them to
your CEO with a cover letter from the director of HR. (still kidding.)
-------- Washington DC. -------------------
Is Washington DC as bad as I say? It's worse... the DC reports are
simply clips from the daily paper with rude sound effects. Serial killers,
decapitated bodies, problems at the morgue, a drug addled mayor, stolen or
missing city cars, armed police and FBI agents murdered at their desks,
cryptosporidia, infant mortality, 50% of the streets need repairs, young
workers at a Starbucks coffee store shot 'execution style', school roofs
leaking and school furnaces not working or unsafe, and more, lots more that
I don't have time to write about.
It's time for the federal government to retake DC, eliminate the mayors
office, clean this mess up.
But jobs, there are lots of jobs here, Rep. Horn is slamming the
federal agencies, at some point they'll get tired of the bashing and will
start the work. Rep. Horn... the man's a rhino. Just look at him gore the
agencies.
and in a couple weeks, we'll have the Washington Post's Mega Job issue.
Keep watching http://www.washingtonpost.com
-------- What can you do ------------------
What can you do? First thing is to make sure that you are receiving your
fair compensation. You don't need absolute top dollar but you should earn
at least the average. If you don't, don't quit. Go on some interviews,
check into contract work, post some articles on the programmer shortage on
the lunchroom wall.
Careful, management can be very thick skulled. This is a requirement
for a senior executive. Senior executives may smile a lot, glad hand but
make no mistake, they are terrific at promoting their point of view and
ignoring yours. They can do that while agreeing with everything you say...
You're underpaid? Of course we'll do something about that immediately...
we'll establish a higher salary structure, maybe stock options all starting
at the top, of course, with smaller percentages down the chain of command.
Oh, here's your generous increase... 3.2 % and a big 8 shares of stock.
Hey, how come the boss got 30% and a thousand shares... that's just the
way the formula came out.
In the mid 1970's I worked for an insurance company in Texas. I earned a
big five dollars an hour doing systems programming. This was at the time
that some confused economist convinced Gerald Ford that the U.S. needed to
Whip Inflation Now. so Big Gerry imposed wage price controls. When it came
time to get our raises, the insurance company said, oops we're allowed to
give only a 2 percent increase to the entire company so we won't insult you
workers with 2 percent, we'll make the company pension plan
non-contributory (10 year vesting) and (whispered) give the increases to
the executives.
OK fine, I know how the game is played.
The next year, Big Gerry expanded the inflation cap rule to mean no person
could get more than the specified amount and transferring dollars from
workers to executives was not allowed. When the second year's raise plan
was announced, the VP of IT had the nerve to claim that one of the other
executives offered to give "our raises" to the workers but someone in the
executive meeting said, "the government won't allow that"
Give me a break, the previous year, they scooped up all the money for
everyone's raise and stuck in their pocket. Now they're pretending that
they wanted to give us a raise but Washington is blocking it.
I stuck it out for two years and left earning 28 dollars a month more than
when I started. My boss was miffed, said I let him down by leaving. The
company could have given out promotions.
You don't build loyalty by stealing the livelihood of the employees. Every
geek should know what the current market rate is. If you're not paid the
current market rate, if you don't receive fair and regular increases and
bonuses, that's a sign that it's time to plan your escape. Don't leave in
a huff. Plan, use your head and engineer an exit strategy that will protect
you and get you the money that you deserve.
Money is a resource that can be used to obtain other resources. You need
it to buy food, energy, and to provide for your family. Make sure you
receive your fair share.
-------- Five Guys COBOL, Inc. revisited --
FGC, Inc is five guys who are tired of slaving for the massa and decide to
strike out on their own. They do it gradually and on the cheap. Buy an
incorporate yourself packet at the office supply store. Fill out the forms
and file for the various federal and state numbers. Get a copy of
Quickbooks and just have at it.
You can do it all yourself, don't get suckered in by professional
business setter-uppers. You can do it yourself, it will take some time,
about a week to get started and a half day a week to keep it going but if
you can read, you can start FGC, Inc.
If it starts to get hard, call the local small business assistance people.
You don't have to pay someone more than you can make as a consultant to do
this simple stuff.
Pricing FGC Inc.
If you're a COBOL gearhead earning 60K year and you and your 4 pals decide
to go for the American Dream. Here're some thoughts on pricing.
We have to come up with a minimum rate. As a commercial business, you can
charge whatever you can get away with but this analysis will set the floor
below which you are losing money.
Rate Justification and Revenue Analysis
Hours/Year Days
60,000.00 Base Salary Assumptio 71.33 8.92
28.85 Hourly Rate 1,712 142.66 17.83
46 Total Overhead Day 3.83
10 Holidays 0.83
5 Education/Educatio 0.42
25 Vacation/Sick 2.08
3 Marketing 0.25
3 Management 0.25
Annual Monthly
8,400.00 850.00 Medical Insurance
Actual 550.00 45.83 Life Insurance
Actual 2,200.00 183.33 Communications(voice, email
Actual 3,600.00 300.00 0.0600 SEP IRA Pension
Actual 9,000.00 750.00 Office Rent
Actual 3,105.00 258.75 Hardware, Software licences
Actual 2,308.00 192.33 Seminars, Training
Actual 1,225.00 102.08 Legal services
Actual 1,400.00 116.67 Auto, transportation
Actual 210.00 17.50 Unemployment Ins
3,000.00 250.00 Accounting
Actual 4,980.00 415.00 Social Security
$39,978.00 Overhead Total
$10,615.38 368 indirect hours
$49,384.62 1,712 direct hours
$50,593.38 1.0245 % Overhead Rate
$99,978.00 Verify *********
$99,978.00 Total
$58.40 Effective Hourly R 1.0245 Mult
$6,498.57 Fee 0.065 Mult
$62.19 Consulting Hourly Rate Including Fee
In the example above, as one of the Guys in Five Guys Cobol, you charge
$62.19/hour for 1,712 hours a year, a total billing of $99,978.00. plus
$6,498.57 fee. This allows you to break even with your previous salary of
$60,000/year.
The $3,000 accounting allocation covers the cost of someone to help keep
your accounting records and an annual charge for an accountant.
The communications fee of $183.33 covers your business
phone, cell phone, internet email account, and long distance charges.
You pay yourself $49,384.62 direct and $10,615.38 for holidays, vacations,
and other overhead tasks, a total of $60,000.00.
The costs are realistic for the DC area. Do not underprice your
services. The consultants who don't do this analysis and charge too
little, quickly find themselves working 200-220 hours/month to make ends
meet.
The fully burdened hourly rate, $62.19/hour is just a little over twice
your previous hourly rate of $28.85/hour. Some consultants have rules of
thumb that they have to bill 2X or 3X salary. You can use 2X and 3X or you
can build a spreadsheet using the actual values above and calculate
precisely what your rate should be.
Have your eyes glazed over?
...and to those who think us geeks don't understand the difference between
what the client pays and what the employee earns, now all geeks know the
score.
-------- Even MORE DC Horrors -------------
The Washington Post - December 31, 1997 Page 1A
"D.C. Woman Who Killed Daughter Is Awarded Custody of Young Son"
"Latrena D. Pixley, a District woman who killed her 6-week old daughter in
1992 by smothering the child with a blanket, has been awarded legal custody
of her young son after prevailing in a bitter court fight in Montgomery
Country with a woman who wanted to adopt him, according to attorneys
involved in the case."
"Pixley, 23, has been in and out of jail since pleading guilty in March
1993 to second-degree murder. Now she is to be reunited with her son, who
turns 2 next month....."
This is nutz! I can't make up stuff this looney and you know my
imagination...
-------- The Survey -----------------------
Eric's quarterly survey results are in. Thanks for running the survey and
compiling the results.
From: Eric Turner <gears@ix.netcom.com>
Subject: Survey 4Q-1997 Result
Date: Wed, 31 Dec 1997 10:18:38 -0600
In response to this list;
1 - it ain't gonna happen
3 - bump in the road, 80-hour weeks for all in 1999-2001
5 - probable collapse of economy, start hoarding now
the opinions were;
Geeks response 4.09 - Experience 18.06
Non-geek response 4.29
Overall 4.11
And thanks to everyone who contributed to the vote. I glanced over the
list and noticed that there were only two votes at 4.75.
In the Geek Category:
Frank Ney 4.75 19
In the Non-Geek Category:
Paul Milne 4.75
Coincidence? I think not.
-------- Cory's closing clueless comments -
Ya-hooo. Denial is over. Two years to go.
How high can a geek jump?
How high do you keep the money.
I'm all a-quiver, it's clear that we're not going to make remediation.
That's the bad news. The good news is that the horn-hairs don't know that
yet so they'll pay and pay us to turn the crank on the remediation mill.
Finally, denial is working in our favor.
Also, there are things that can be done. We have two years, I've got lots
of ideas. Some software conversion aids will help. I've been working on
one. I'd like to assemble a real remediation kit. My product, a couple
dozen others, not vaporware but real code. I haven't seen Bob Bemer in
the news.
Come on, geeks, we've had our last holiday for a couple years, are you
ready to CRANK CODE! Are you with me? Let's go.
But first... I'll light a geek candle, turn down the lights, ah, flip
on some geek coding music, "Nun komm, der Heiden Heiland", ooOOH, ... Lets
hold hands and recite the new geek oath.... I, a true geek, will earn my
fair share and do my best to fix the software that keeps civilization
running as long as they continue to pay me. I'll watch out for my fellow
geek and geekette, help them do the work and get their fair share. Even if
I have to work 14 hours a day, I will do it cheerfully, and will charge for
every minute that I work.
OK, now shout the cheer, "Stick em up!"
Check out http://www.ntplx.net/~rgearity any evening, 8-10PM EST. Lots of
hot Y2K talk.
729 days to go.