Larson links 2010s engineering management habits to zero interest rates

Will Larson argues that the zero interest rate environment of the 2010s fundamentally altered engineering management habits, creating a culture that is no longer effective. Citing a blog post by Ron John Roy and John Durek on The Margins, Larson notes that low rates shifted leverage to engineers, making hiring and retention the primary differentiator for companies. This dynamic incentivized managers to shield engineers from business problems, focusing instead on 'interesting work' and low attrition, often at the expense of technical decision-making. Larson observes that managers were historically instructed to avoid technical decisions, forcing them to rely on headcount and process as their only levers.

Larson contrasts this with the current era, where engineers are expected to understand business unit economics and solve high-priority business problems. He recalls a period at Stripe where staff engineers requested 'more interesting problems,' to which he responded that he only had 'suffering' to offer, but that such suffering was necessary for business success. Larson believes the industry has reverted to valuing engineers who tackle valuable, non-glamorous business problems over those seeking personal intellectual reward. He asserts that the 2010s ethos of shielding engineers from business realities was a product of specific financial conditions and is now obsolete.