20 December 2023 17:32 20 December 2023 17:32 | Share
Nvidia is facing a massive staffing problem. Young employees of the company openly express dissatisfaction with the fact that “veterans” and company executives earn millions of dollars by working carelessly, while they have to work hard. Nvidia CEO Jensen Huang is trying to resolve the issue, but so far without success.
“Semi-retired” at the helm of a top company
There was a widespread feeling of deep injustice among young and newly hired Nvidia employees. As Business Insider writes, they are extremely dissatisfied with the fact that they give 100%, but at the same time they receive several times, and sometimes tens of times, less than those whom the company calls “veterans.”
This unofficial status is assigned to those who have worked for the company for more than five years. But the young staff envy not only them, but also the top management of the company. According to the publication, among Nvidia’s management team, employees see so-called “semi-retired people” who work in the semi-retirement mode, that is, sluggishly and lazily, carelessly.
At the same time, while clearly putting in much less effort, “veterans” and management earn much more than ordinary workers. Even middle managers can easily earn a million US dollars a year or even more.
Origins of injustice
The reason that some people quickly become millionaires while working at Nvidia, while others cannot pay off their mortgages, is hidden, unexpectedly, in the success of the company itself on the world stage. It is the largest developer of chips for video cards and computational accelerators – its GeForce occupies more than 87% of the global market for discrete video cards (Q2 2023, Jon Peddie Research), and its computational accelerators are purchased by China alone, using “gray” schemes, for billions of dollars .
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The company is swimming in money – in five years its shares have risen in price by 1,200% to $488 per share, and, according to experts at Tom’s Hardware, in another 10 years they could well grow by another 12,000%.
Many long-serving Nvidia employees (five years or more) have stock options, which, seeing what is happening with the securities, they rush to exercise by becoming its shareholders. This results in such a strong imbalance in wages in the company that its young employees were unable to put up with it.
When money stops being a motivation
The opportunity to receive gigantic sums of money while being on Nvidia’s staff and being its shareholder leads to the fact that many “veterans” and managers begin to work in the aforementioned “semi-retirement” mode, that is, on the one hand, to fulfill their duties, on the other, to do it’s not very efficient in terms of the time and effort put into it.
Nvidia CEO Jensen Huang is also unhappy with the situation at his company. According to him, all Nvidia employees should approach their work with enthusiasm, like voluntary exercise.
Huang also appealed to the pride that “semi-retired” people might feel for the work they did well and on time. In addition, he invited them to imagine that each of them is the general director of their personal time, and this position always obliges them to work “in an adult, responsible way.”
Words won’t help matters
By and large, in attempts to resolve the issue of wage inequality at Nvidia, Jensen Huang, who is entrusted to him, has so far limited himself to only motivational speeches. At the time of publication of the material, no other actions had been taken in this direction.
Despite this, Huang remains respected among young and new Nvidia employees, with employee trust ratings in the range of 98%. According to Business Insider, the company’s employees do not blame Huang for what is happening – instead, they blame him for Nvidia’s current corporate culture, the main value of which is its employees.
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This culture, coupled with the management style of the current management of the company, contributes to the exceptional comfort of the executives and, as some would say, an atmosphere of complacency that reigns throughout the company in general and among its management team in particular.
This includes the fact that Nvidia is one of the few world-famous IT companies that did not cut staff in either 2022 or 2023. Amazon, Intel, Microsoft and many others did this, but not Nvidia. Moreover, the last time it optimized its staff was almost 16 years ago – in 2008, when the whole world plunged into a global financial crisis.
Georgy Dorofeev
2023-12-20 15:53:29
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