[jsprogrammer]

>Fast forward to today where it's much harder to hire and all of a sudden, fresh grads can command salaries that might be equal to what someone with 2-3 years of experience was previously offered.

Perhaps -- and existing salaries should be adjusted to reflect that.

[cpeterso]

Exactly. If companies don't adjust existing salaries to reflect that, then they are basically telling their employees to quit because the best way to get a "raise" is to switch companies.

[mrow84]

But of course they won't, because salary information isn't available, so it is difficult for employees to make these decisions.

In other words, companies can systematically distort the free market in labour by withholding information about the true salaries it offers from its employees.

[vacri]

The door doesn't swing both ways though - people don't get a salary cut when supply later exceeds demand. If you wanted a salary system that did respond to job market fluctuations, you'd have to open up to the possibility of getting cut pay.

[ctvo]

Getting fired has always existed as a correction mechanism for companies.

If your performance:pay ratio is off and the supply of developers is high, there's nothing stopping them from letting you go.

[vacri]

> there's nothing stopping them from letting you go.

Not everywhere allows employers to just fire-and-replace an employee on a whim.

[jsprogrammer]

Risk of doing business in those locations.

[calbear81]

Inertia can often set in especially if you're someone who is not very vocal about asking for a raise or keeping track of how in-demand your skills are.