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I'd be surprised if the average package for SWE is $1M/year (fully loaded).
by johnbellone 1y ago
I'd be surprised if the average package for SWE is $1M/year (fully loaded).
- YetAnotherNick 1y agoGenerally package is around half of what company spends per extra engineer. And $500k average for a tech heavy product company doesn't sound too far off.
- MrDarcy 1y agoThis is just wrong. What exactly do think companies are spending 500k on per engineer beyond the TC package?
- throwaway98797 1y agooffice space of course!
- andruby 1y agoHR, marketing, sales, management, office space, servers, licenses, insurance, etc. It seems on the high end, but not too unrealistic.
- hug 1y agoIt’s wildly and hugely unrealistic. The rule of thumb that employees actually cost a business roughly twice their salary is based on two things: 1. Retention. Hiring costs are “huge”, and so if you have a higher or lower average retention, may make up a disproportionate cost compared to salary. Ramp up time and institutional knowledge loss is no joke either. 2. A spread of average wages. 500k is not average, and a huge number of the costs are relatively fixed. $1,000 a month worth of software licensing isn’t an uncommon number and is fully 1/3 of the salary of a $3k a month or $36k/year junior clerk. It’s peanuts when you look at it next to a $500k/year salary. It may be that the clerk is, all in, costing the company 3x their salary after indemnity insurance and so on. The dev will never reach 10%.
- purplepatrick 1y agoNon-salary cost such as payroll taxes, benefits, workers comp, training, equipment, space add another 25-50% typically.
- MrDarcy 1y agoThey don’t, those are fixed. Even taxes are capped because TC includes equity. For a 500K dev GP is correct, additional expenses will never reach 50K for someone making 500K.
- Loudergood 1y agoUS Health Insurance is stupid expensive as well.
- xeromal 1y agoIt's really not at scale. It's on the order of 500$ a month per dev for "gold" level care for a company of 50 people. I'm sure it's less the larger you get.
- dgoldstein0 1y agoIt might depend on the state and the age pool but I have to pay a percentage and based on that it's more like $10k/year. So you are almost 2x undercounting ... But maybe if the average employee of a company is 25 they could get a better deal
- jesseendahl 1y agoI haven't traditionally seen these areas of spend rolled into Eng costs in the budgeting process.
- hiddencost 1y agoNope. 2x total comp is standard fully loaded cost.
- nialv7 1y agoHoly hell I need to ask for a raise.
- klooney 1y agoWhen people say they get 500k they mean they get paid 200k in salary and got 300k in RSUs, with the details mixed around the edges. ICs aren't getting 500k salary except in a few rare cases.
- rafram 1y ago> $500k average for a tech heavy product company doesn't sound too far off. Tailscale puts salary ranges on their job postings. The salaries aren’t bad, but no, they aren’t $500k.
- YetAnotherNick 1y agoDidn't knew that. It's significantly lower than $500k.
- xeromal 1y agoFunny enough, you could double that to 70 engineers and that's still a TINY amount of engineers.
- udev4096 1y agoThis might be true for HFT companies. They usually start at 200-300k and mid senior engineers probably make close to a million