Is Facebook Paying A “Brand Tax” To Attract Tech Workers Afraid Of Being Tarnished By Scandal?

  • A series of scandals and missteps has damaged Facebook’s reputation to the degree that the company reportedly has to pay higher compensation for hiring and retaining its employees.
  • “They can easily throw more compensation at people they currently have, and cover any brand tax and pay a little more to get people to come on,” said an experienced tech recruiter.
  • A former Oculus engineer said Facebook could now be seen as a “black mark” on someone’s career, and a hardware engineer who quit in 2020 shared similar fears.

Kali Hays from Insider writes:

“A series of scandals and missteps has damaged Facebook’s reputation so much that the company is being forced to pay ever larger compensation to hire and retain workers, according to industry recruiters, former employees, and data reviewed by Insider.

The company has always competed aggressively for talent, and the tech job market in general is on fire. But a deteriorating public image means the social-media giant now has to outbid other major tech companies, such as Google.

“One thing Facebook can still do is pay a lot more,” said Jose Guardado, an experienced tech recruiter and the founder of Build Talent. “They can easily throw more compensation at people they currently have, and cover any brand tax and pay a little more to get people to come on.”

Silicon Valley companies thrive or wither based on their ability to recruit the smartest employees. Without a steady influx of engineers and other technical experts, new products and important updates take longer to release, and rivals can quickly get ahead. Then there’s the financial cost: In 2022, Facebook projected, expenses could jump as high as $97 billion from $70 billion this year, in large part because of “investments in technical and product talent.” A company spokesperson did not respond to a request for comment…”

See full story here.



Categories: Business, Economy, Labor, Society, Tech

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