The Trimodal Nature of Tech Compensation — and What to Do About It
Three tiers of tech companies pay vastly different salaries. Here is why great engineers are still drawn to FAANG, what employers outside the top tier need to compete on, and how job seekers should think about negotiation.
Hot off the press: a review of engineering salaries across the globe, with insightful analysis by The Pragmatic Engineer and Levels.fyi.
There are three tiers of companies paying vastly different salary ranges. It’s why great engineers are always tempted by FAANG-like companies despite the competitive and demanding culture and high process overhead: the compensation is simply a step-function higher.
If you’re trying to hire top talent
If you can’t compete on dollars, your founders’ story and company vision must be extremely compelling. It’s an employer’s market, but top talent is still mighty scarce — and they are writing their own ticket. What stories, culture, and benefits do you offer that make your company the best place to work?
If you’re a job seeker
This data should give you confidence to negotiate your compensation. Don’t just accept the initial offer. I know — it’s easy for me to say. I do understand that the idea of negotiating can be scarier than the interview itself.
There are services where you can mostly delegate the salary negotiation process. Check out Levels.fyi and interviewing.io — high-priced, but likely to pay for themselves many times over.
I also know a couple of experts who do this as a side hustle on the down low (their full-time job is making offers at big companies and negotiating against you, so they know a thing or two). Reach out if you’d like an intro.
