7 ms·
What incentive do people have to lie about their salary (assuming it's anonymous)?
by hamandcheese 10y ago
What incentive do people have to lie about their salary (assuming it's anonymous)?
- wdewind 10y agoWell in this specific case LinkedIn makes it so you have to report your salary to see other salary data, so that right there is one place where people have an incentive to add junk just to get the data. But the more important problem is the selection bias.
- tyingq 10y agoOutside of lying, I've not seen an implementation of this that fully accounts for compensation outside of base salary (bonus, options, 401k matching, benefits, etc). I suspect some are entering only base, some base+bonus, or similar.
- oarsinsync 10y agoLinkedIn Salary appears to be reporting base salaries and total compensation.
- kbart 10y agoNot necessarily lie. People, that earn less, are likely to be ashamed (even anonymously) of their salary, while big earners are prone to boast on every occasion.
- vostok 10y agoEmpirically, we see the opposite happening and compensation data on websites like Glassdoor is actually too low.
- thesimpsons1022 10y agoto be fair, glassdoor still averages in salaries from 5 years ago into the current salary
- vostok 10y agoThat's part of it. People with higher salaries don't contribute for privacy reasons. They're also missing bonus/equity data for many firms.
- ryandrake 10y agoHow do you know that the data on Glassdoor is too low? What is your source of truth? Anecdote? Glassdoor currently reports the average base salary for the job title "Senior Software Engineer" in SF Bay Area to be ~$130K which sounds about right to me, again, with nothing but anecdotal truth reference. If you go by what people say on HN, then of course everyone in software makes $300K a year and has millions in stock options (and gets 5 job offers in their inbox a week).
- vostok 10y agoI know how much I am paid, how much some of my coworkers are paid, how much my company pays new grads, and what the average salary on Glassdoor is for my company. The average is lower than what new grads got in 2016. On top of the incorrect base salary, the information on bonuses/equity is extremely limited. The average that is listed is also incorrect.
- deleted 10y ago[deleted]
- patcheudor 10y agoThere are massive incentives to lie about how much you make. It's not hard to imagine this tool will be used by HR compensation experts to determine wage parity. With that in mind, the higher the average, the better positioned you will be to negotiate a higher salary, therefore everyone who reports how much they make is ultimately incentivized to state more than they make in hopes of driving up the wage index for their field.
- chrisdbaldwin 10y agoAnd who is to stop a software company from doing the opposite? If they want lower wages, they could spam a region with fake workers with lower wages.
- patcheudor 10y agoThus to the original point: self reported data is questionable.
- mfoy_ 10y agoIt would be neat if the IRS / CRA / national tax body would publish summaries based on people's actual tax returns. Although you don't specify things like industry, and other career specific quirks on your tax returns. (i.e. Ruby on Rails developer vs Dynamics CRM developer)
- deleted 10y ago[deleted]
- twokul 10y agoone of the engineers from Salary team. we talk about privacy and accuracy at length in this blog post https://engineering.linkedin.com/blog/2016/10/bringing-salary-transparency-to-the-world https://engineering.linkedin.com/blog/2016/10/bringing-salar.... TL;DR; we do outlier detection.
- ones_and_zeros 10y ago
- clifanatic 10y agoWell, if everybody else thinks that programmers make $200K/year, there's a chance that somebody might consider paying $200K/year. That seems like an incentive to me.
- user5994461 10y agoNope. Lots of places can't pay that money. They'll still try to interview and hire people but they can't compete. There is a very wide range of salary, skill and experience in tech. A single figure is not of much use. If anything it might be ruined by the vast majority of cheap companies (i.e. outside of Google/Apple/Facebook/... )
- ghurtado 10y agoMaybe, but you would need massive collusion with millions of developers that you have never met in order to pull this stunt. I don't think that sounds very plausible.
- clifanatic 10y agoWell, we have you and we have me - who else is on board?
- ghurtado 10y agoHate to say it, but you only have you so far.
- plandis 10y agoAssuming you wanted to work for LinkedIn and Microsoft I'd definitely encourage you to lie about your current salary just in case they were so inclined to look it up and leverage it against you.