PETER'S Q1 2022 MARKET REPORT

Since the beginning of 2021, we’ve been talking about the strength of the hiring market and rising salaries for just about everyone. Looking back at the last couple of quarters, I wrote “white hot” and “gold rush” among other things describing this market. The strong market continues, but we’re seeing signs that last year’s frenzy has cooled:

  • A division at a major investment bank with aggressive hiring goals has filled their quota and is reassessing new hires

  • A large FinTech has paused hiring to absorb the large number of recent hires

  • Compensation is no longer steadily ticking up. Salaries jumped significantly last year as competition for talent was intense. However, there has been a reset to a new norm, and we don’t see continued rapid escalation in salaries

Many companies have been very successful in hiring over the past year. By raising compensation and recruiting aggressively, firms have managed to attract talent. Larger firms have been slower to adjust what they can offer, weighed down by a large workforce that may now be underpaid (see below).

I’m sure many people reading this are wondering where their increase is. If you’ve been a loyal employee and remained at the same firm for several years, don’t you deserve to be “marked to market” by your current employer? The fact of the matter is that many firms are reactive rather than proactive when adjusting salaries. Firms simply can’t afford to give hundreds or thousands of employees significant raises. My advice to you: If you haven’t seen your salary go up significantly over the past couple of years, make sure to have a constructive conversation with your boss. I’m hearing that the “sorry I can’t but we’ll try next year” message has been replaced by “let me see what I can do.” And if that doesn’t work, be proactive, manage your career, test the market, and find your value.

Regional Leveling

We touched on this topic last quarter. Hired’s 2021 State of Tech Salaries report has the following graphic:


These averages are low for this audience, but the interesting information is the trends. NYC and SF show decreasing salaries on average, indicative of the ability of companies in these areas to hire cheaper, remote employees. However, do we trust this data? I certainly don’t understand the Dallas figures, and though I wanted to mine more from this article, I couldn’t figure out what their data is smoking. Entry level employees making the same as 2019? I don’t think so.

Let’s look at the Dice Report:

These data trends look more reasonable. Here we see flat growth in NYC and lower growth in Silicon Valley vs significant growth in secondary cities like Pittsburgh and Miami.

Our practice is more focused, and we have observed the following:

  • $ significantly up for top junior-mid level developers

    • 50% or better in some cases

  • Solid $ growth for all experience levels

  • Employees were taking significantly less money to work remotely, but with Big Tech embracing fully Remote, this discount will likely disappear

NYC rents have climbed back to pre-pandemic levels, so reports of an exodus would seem premature. I’m sure that many of those pricey rents are afforded by the people we work with who are making significant $ at a young age.

Blockchain Curious

Our business necessarily adjusts to where people want to work, and more and more that’s DeFi. Occasionally we meet people who tell us, “Anything but crypto,” due to the massive hype surrounding it. I make an effort to understand where things are going, and I thought this article describing a former Goldman exec’s motivation for buying a “Bored Ape” was particularly interesting. He concludes, “The future has arrived… You might not see it yet but when you look back in 10 years you will see the entire worlds business model has changed. Forever.“ That feels right to me.

Myself I have gone from NFT skeptic to “blockchain curious.” I received this from someone who I hold in high regard:

If you are a "NFT's are a stupid tax on rich people" person, you'll get eaten alive.  If you're a "hey, we're still trying to figure out cool things to do with an open ledger and NFT's are just at the current front of that," then you just might be blockchain curious.

We currently have 2 Blockchain FinTech clients, and that number will certainly expand this year.

Affinity North Team

Not everyone knows the great Affinity North team. Please see their bios linked below: 

  • Armine Khudinyan – Armine will soon be exploring the next chapter of her life! We are sad to see her go and so grateful to have been able to work with her for almost 6 years! Affinity North will not be the same without her!

  • Jennifer Jacobs

  • Jim Soufleris just joined us – more to follow

  • Peter Wagner

  Current Priorities

NOTE:   This is only a sampling, too many roles to include!

  • Compensation continues to be strong

  • Hybrid/flexible work arrangements the de factor standard for almost all firms

FinTech

Most in Demand: Distributed Systems/Micro Services, Data Engineering, Javascript

  • Senior Credit Quant – Machine Learning – bond pricing

  • BlockChain Development Manager – language agnostic, prior BlockChain experience not required

  • BlockChain Application Developer – language agnostic, prior BlockChain experience not required

  • BlockChain Platform Developer – language agnostic, prior BlockChain experience not required

  • BlockChain Developer – Haskell (first Haskell job!)

  • Lead front-end developer – Javascript (Typescript), React

  • Java/Scala Engineer with FIX experience

  • BlockChain Developer – mix of Python/node.js/C++ - small, cutting-edge startup w/ top, top engineers

  • Data Engineer - Python, Go, Postgres, Kafka

  • Services Engineer - Go, gRPC, PostgreSQL, Kafka, Redis, Docker, Kubernetes (Java/C++ developers will transition to Go)

  • Platform Engineer - Distributed Systems – Go (Java/C++ developers will transition to Go)

Buy Side

Most in Demand: C++, Python, Data Engineering, Cloud, Front-end Javascript/Typescript

  • Junior Developers – Python/C++

  • QuantDev – Central Research Technology – Python/C++

  • Quant Researcher – Equity alpha research

  • QuantDev – Central Research Technology – Python/C++ - Equity alpha systems experience

  • ML Research Engineer – Python/C++ - ML research system implementation

  • Low-latency C++ Engineer – market data, OMS

  • Core C++ Developer – trading infrastructure – OMS, execution

  • Automation Architect – CI/CD – Linux, Jenkins, Ansible

  • Python Data Engineer

  • Senior C++ Engineer – high performance/low-latency, demonstrated low-level experience

  • Data Engineer – Python, SQL

  • C++ Engineer – Electronic Trading Strategies

  • Quant Research Lead – C++, Python, R – Drive research agenda - statistical inference models and predictive analytics

  • Quant Researcher – alpha research

  • Quant Dev – alpha research

  • C++ Engineer – mid-senior - matching engine, algos, CLB/CRB

  • Data Engineer – mid-senior – Python, Cloud/AWS

  • Senior Java Engineer – Fixed Income

  • QuantDev – Python/C++ - Portfolio Solutions

  • Commodities Data Engineer – Python   

Sell Side

Most in Demand: Java, Data Engineering, Big Data, Cloud – Diversity

  • COO – Securitized Lending

  • Development Manager – IB Consumer Products - ~20 directs

  • Development Manager – Executive Director – Credit Risk

  • Cloud Architect – Hands-on Java

  • Hands-on C++ Development Manager – Directory - Equities eTrading

  • Java Developer – Semantic and Graph Technologies

  • Java/Scala Developer – Securitized Lending

  • Java/C# Lead Developer – Credit Trading Technology

  • Java Dev - Smart Process Automation and Robotics Center (SPARC) group

  • C++ Developer – Fixed Income eTrading

  • Senior Java Developer/Cloud Architect

  • C++ Developer – CVA Systems

  • Senior UI Developer – Javascript/Angular

  • C++ Developer – equity eTrading

  • Python Developer – Securitized Products

  • Quantitative Developer – Full-stack – AMD

  • UI Developer – C# and Javascript

  • Senior C++ Developer – equity eTrading

  • Python, ML Developer – ML Center of Excellence

  • Quant - eRates

  • Java Developer – Micro-services, Kafka

  • Data Analytics – HR Data

  • Java Developer - Fixed Income Front-Office

  • UI/UX Architect - Hands-on Senior Lead

  • Quant – FX/Rates Pricing

  • Java Developer - Front Office Automated Trading – Fixed Income

  • Java Developer – Rates Electronic Trading

  • Quant Researcher – FX systematic Market Making

  • Quant Researcher – Commodities systematic Market Making

  • Quant – Equity Futures

  • Lead Java Developer – Liquidity and Funding

  • Quant – Rates/FX

  • Quant – Credit – Algo Trading Research

  • QuantDev – Fixed Income Algo Trading – Execution

  • Portfolio Trading Strat – Credit/ETF

  • Quant – RMBS

  • Quant – CLO Optimization/Leveraged Finance Strat

  • Quant – Corp Treasury

  • Quant - Asset Management - Macro + Markets

Affinity North

 We are expanding. If you are at the point in your career where you’re interested in trying something different, please contact me. We are ex-developers/quants recruiting great people in these fields for some of the top firms in the world. It’s a lucrative field and highly flexible.