lunatechian (lunatech-ian)

one relating to, belonging to, or resembling lunatech

Dark side of start-up acquisition

Quoting from a news article about a recent startup acquisition in Bangalore:

On the very next day after the acquisition, as many as 20 of the firm’s 50 employees got pink slips from the company, according to a report. The people asked to leave were employed in project management, engineering, user interface, testing and marketing. The reason cited by one of the employees was that the company no longer had suitable roles to offer to the employees.

The lay-offs highlight a dark side of the start-up culture in India, where initially high-profile acquisitions grab headlines, but not much is said about what happens after these deals transpire.

Your spending power is less than what you think

Your income is not as much as you think it is.  Let me show you why  using the numbers from the US Census Bureau for Santa Clara county

Median household income (in 2013 dollars) is $91,702 .However, note that this is not the amount that comes into the bank.  The employer deducts the  federal tax from this. A rough estimate of the income tax would be 27% (standard deductions, no dependents). This leaves $66942.46 .

After the Federal government takes its cut, the state government levies the state tax on the income. For California this would be 8%. This leaves $61587.06 .

Now let us calculate how many hours someone needs to work to get $61587.06 into the bank. A workday is 8 hours. Mean travel time to work in(minutes), is 25 minutes. Let us assume that he/she gets 21 days of vacation. This means that including the commute hours, subtracting vacation hours and assuming 5 days a week, he/she work 2069.55 hours annually.

So, your hourly earning rate is 61587.06/2069.55 = $29.75. Read that again: the median hourly earning rate is $29.75 . If you do not account for the tax cut and the time you spend in commute, you will believe that your hourly earning rate is 46.65 . However, that is not what an employee earns.

Next, let us see how this converts to buying power. Suppose someone with median income wants to buy shoes with a sticker price $100. The sales tax in California is 8%. What this means is that he/she end up spending $108 on the shoes. To earn $108 , this person needs to work for 3.6 hours.

I have made a spreadsheet to make this calculation easier. . If you want to figure out your spending power, create a copy of the spreadsheet and fill in the cells with numbers that apply to you.

Some ballpark numbers (for California):

  • if your annual income is $50,000 , you need to work 6.7 hours to spend $100
  • if your annual income is $100,000, you need to work 3.3 hours to spend $100
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Heuristic to determine the safety of your job

Here is a heuristic that can give an idea if your job can be automated and might eventually become non existent :

  • can it be done by a software that has the ability to reason about "maybe" secenario. For example : is it time to replace the light bulbs and in what order should the light bulbs be replaced. Or is this change in the code base dangerous.
  • Can it be done by a software that can read an ordered list or report (for example: a bug list) and create an accurate representation of the project in a human readable (more precisely, a manager readable) format: are there any blockers for the completion or are there any tickets that can delay the whole project

A Hard Day's Night

This song is dedicated to my pager and my wife. This song needs to be sung in the same tune as A Hard Day's Night

It's been a hard day's night, and the beeper has been beeping like a ticking clock
It's been a hard day's night, I should be sleeping like a log
But when I get home to you I'll find the pager beeping off some more
It Will make me feel like a dull robot

You know I work all day to get you money to buy you things
And it's worth it just to hear you say you're going to give me everything
So why on earth should I moan, 'cause when I get you alone
You know I feel ok

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