It is equally frustating to see people who are much dumber than I am and people who have pretty lousy work ethics do better than I have done.
I agree, but if you are smarter than these people and have a better work ethic, you have to ask yourself how those people are able to do better than you are doing. Are they gaming the system somehow? Is it the "old boys" network? Because in my experience quality eventually wins out, if you have a chance to prove your quality.
Don't get me wrong, I have spent a lot of time learning how to "play the system" as well. I'm not dishonest about things, but I make damn sure that I know how to compete. If that means schmoozing the right people, or getting certifications, or whatever it takes then I do it.
For example, my employer has a meeting once a week for all recruiters, salespeople, management, and so on. It's basically everyone but the consultants, and they use it to plan strategies, project resources, and talk about what's going on in different areas of the company. Since I'm not a part of that group I rarely get face time with upper management, so last year I made it my personal goal to get my name mentioned in that meeting as often as possible. Sometimes they just mention that I got a new certification, sometimes it's that I referred a candidate or a customer to to the company. I try to do some public speaking events every couple of months at local technical schools and make sure that management knows when I do it. It may seem simple-minded, but the more often that management hears my name associated with positive events the faster my perceived value rises.
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CompTIA A+, Network+, Server+, Security+
MCSE:Security 2003
MCITP:Enterprise Administrator