Market Clearing Prices During Hiring Process
We hear time and time again that we are living in a time period when software engineers are in high demand and that working in such a field is lucrative and will lead to great career prospects. So much so that Obama and organizations such as GirlsWhoCode are pushing for more students to learn computer science and join the field. Now if we think about the laws of supply and demand, we can see that this is not a good sign for software engineers of the future. As more and more software engineers enter the job search market, employers have more options to choose from, therefore lowering the demand and with it the high salaries that we all want to have after we graduate.
Enter companies that are trying to help employers profit from this influx of engineers. Companies such as CodeFights are trying to capitalize on this market, knowing very well that if they can provide an employer with a list of candidates that are already vetted they can increase the profit the employer can get from each worker as well as help provide the elite of the job hunting market a way of proving their value. As more workers enter the market, employers who have the most money can afford to bid on the top workers who will provide the most profit to the company, while the employers who have less money will have to settle for the lower tier employees with less of a profit. Without any way of telling applicants apart, since all degrees are basically equal aside from the branding of the university, employers will have to use tools such as CodeFights to better gauge value of the items they are bidding on. Pretty smart business to be in if you ask me.
https://techcrunch.com/2016/10/16/the-hiring-game/