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his is a study in contrast: two industries with distinctly different gaps between bosses and workers. The Wall Street banking industry, where the gap is large and distinct, and Silicon Valley high-tech, where the gap is amorphous, more or less. The big question is what makes them so different and how do companies and industries bridge the gap?
T Wall Street Banking
When I was a student, my mom got me a job working where she worked - in the banking industry on Wall Street. I spent three summers working in three or four different groups doing all kinds of different jobs. I learned a lot … about the kind of company I didn’t want to work for when I “grew up.” Not to generalize about the entire banking sector from one company, but, for the most part, it was cut- throat, dog-eat-dog, CYA, with plenty of back-stabbing thrown in for good measure. Sure, it was tough on the employees, but I think it was even tougher on the managers.
I didn’t know any executives, but whenever someone in a nice suit paid a visit to our department, my boss was always a little shook up and a lot stressed. That led inevitably to a three-martini lunch. The other thing I remember is the class distinction, and I’m not just talking about clothes. Some people were sir and mister and you whispered when they were around. They were the “bosses.” And it
8 CA Employer March 2011
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Closing the Gap Between Bosses and Workers By: Steve Tobak
was pretty clear that I, along with everyone else I worked with, were the “little people.” Well, I’ve since had plenty of experience with many companies in the banking sector, albeit as a corporate client. And although I now tend to think of class distinction in terms of compensation, by that measure, not much seems to have changed. On Wall Street, if you make money for the company, the company takes care of you. Otherwise, you’re one of the little people. Granted, that’s a gross generalization, but that’s my perception.
Silicon Valley High-Tech Now, if you contrast that with the industry that I was fortunate enough to land in - high-tech - you’d think you landed on another planet. For the most part, everybody’s on a first-name basis and anybody in a suit is probably interviewing for another job. Sure, top executives with big firms make big bucks, but that’s not the case with startups where almost anyone can make it big by joining the right company at the right time. I’m not trying to make it sound like high-tech is all milk and honey; it’s not. And it’s got its fair share of dysfunctional executives, that’s for sure. But I know at least one CEO who started as a factory worker (Steve Appleton of Micron), dozens of executives who - like me - started with nothing but a degree, and hundreds of now- wealthy engineers. Microsoft alone created at least 10,000 millionaires, according to one economist.
Furthermore, I’d be surprised to find any significant demographic correlation between the haves and the have-nots in the high-tech industry. It’s more or less a function of your abilities and actions. So, given the stark contrast between these two industries, I’m wondering what is it about them that makes them so different. Here’s what I’ve come up with so far, but keep in mind, it’s a work in progress:
Youthful culture. High-tech is a young industry and most of the prominent companies were founded by people who were young at the time. So, those individuals became role models and cultural models - not just for their companies - but for the entire industry.
Left coast versus right coast. As the high-tech mecca, Silicon Valley and the rest of the west coast is far less formal than the east coast. Period.
Garage mentality. It’s Silicon Valley lore how companies like Apple and Hewlett-Packard were founded in garages where a few people worked together as a team to create something they were passionate about. That mentality still permeates much of the industry.
Equity. I believe Intel started the practice of awarding every employee stock options, and it makes sense. How else do you
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