#2: Companies benchmarking against all local companies, even if they are not direct competitors. Engineers don't receive any equity - save for, perhaps, lead or principal positions in rare cases, and very little. Those that have will typically cap bonuses at 10% of the annual salary, and tie it to company performance. Most of these companies will pay a salary only: a fraction of them will have any bonus scheme in place. For an entry-level role, this number would be €25,000-40,000.
In the Netherlands, these companies would pay €50,000-75,000/year for a senior engineering role in the Netherlands, everything included (apart from the hard-to-value early-stage startup equity). Startups with little capital and bootstrapped companies might fall in this category. They'd aim to pay right around or slightly above what the other local supermarkets, e-commerce sites and similar businesses pay. Examples would include IT teams for local supermarkets, or e-commerce sites and similar. Technology is not treated - or compensated - as a core competency at these companies. Most of these places call engineering as IT, and often view it as a cost center. #1: Companies only benchmarking against their local competition and non-tech companies, competing with their local competitors. Here is the split of the three groups of companies, based on their compensation philosophy: The range for #3 is almost entirely missing from most public salary data. A site that is better at capturing all three tiers is the one I'm building:. You'll find little to no compensation data on this third pillar on likes of Glassdoor, Payscale, Honeypot, Talent.io, Stack Overflow Jobs and other public job or salary portals. Which category does your workplace belong to?
#RAD TECH SALARY IN NY SOFTWARE#
Most engineers are not aware of this third, Big Tech pillar and the compensation ranges it introduces, assuming compensation can not go beyond what is offered at the second pillar: There is no longer an "average" salary for software engineers in Europe / the Netherlands: just an average salary per one of the three, distinct categories. I'm seeing the software engineering compensation market becoming trimodal - split into three distinct groups that "spike" and that have little overlaps. Where is the disconnect? Tiers of Companies It's not just Uber: senior total packages have gone up by 50% from around €100,000 in 2016 to €150,000+, as part of the EU salary research I've been running (I'll share the survey reports in-detail in later blog posts - subscribe here to not miss it). Meanwhile, I've observed the average senior total compensation figures at Uber nearly double from €110,000 in 2015 to €170,000-€230,000/year by 2020. The 2021 Talent.io salary report puts the most experienced software engineering salaries in Amsterdam at €60,000/year. The 2019 Honeypot Amsterdam developer survey says, "the most experienced developers earn an average of €55,000 high as over €70,000". Interesting enough, many engineers did not notice any meaningful salary changes these years. The market - and compensation - for software engineers have moved upwards at an incredible pace over during this time. I've been a hiring manager at Uber, in Amsterdam, for over 4 years. ( Watch this article as video narrated by me, with additional context) Also see for data recorded for a growing number of countries in the three tiers.
Update: dozens of hiring managers confirmed this trimodal model applies to all global markets: from the US, through Asia to Latin America as well. Menu The Trimodal Nature of Software Engineering Salaries in the Netherlands and Europe
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