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Ask HN: How to increase SWE salaries in Europe?

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221–230 of 974 posts

Re: Ask HN: How to increase SWE salaries in Europe?

#221

Do engineers in Europe get as much of their comp in stock as the do in Silicon Valley? My hypothesis on why salaries have gone up so high here is if you want to hire folks away from successful companies, that success means their stock grant is likely worth loads more than it was when they signed on, which you now have to match to compete. If hypothetically every engineer at Apple hired in 2017 got $100k/yr (say $70k…

> If hypothetically every engineer at Apple hired in 2017 got $100k/yr

https://www.levels.fyi/?compare=Apple&track=Software%20Engin...

ICT2: $165k

ICT3: $214k

ICT4: $315k

ICT5: $440k

ICT6: $681k

Point: $100k/yr total comp is pretty low for Apple's standards.

Re: Ask HN: How to increase SWE salaries in Europe?

#222
Major US tech companies earn a profit-per-employee of $200-400k[0]. That's across every employee, so depending on how you attribute value the profit-per-SWE is much higher. That gives a lot of headroom to drive up salaries when competing for hires, and in part sets the market price.

I suspect that low European software salaries are just a function of low profitability of European software companies. e.g, spotify is (at best) around $44k per employee, SAP is $41k.

[0] https://fortune.com/2020/08/24/apple-microsoft-facebook-amaz...

Re: Ask HN: How to increase SWE salaries in Europe?

#223
post #189
post #147

Earlier quoted context omitted.

In what way? Unless I've missed something significant the visa options for those emigrating from Europe to the US are limited. What options are there other than the H1B?

Some paths are quota based by country of origin, so getting a green card is exponentially harder for a Chinese or Indian citizen than an Aussie, for instance.

> Some paths are quota based by country of origin

Yes, but that has little effect on H1B visas. European applicants are in the same pool as everyone else.

> getting a green card is exponentially harder

Nobody mentioned getting a greencard, which is a problem in itself. Just a work visa. Which, if you're a European citizen, is dependent on a lottery.

Yeah, it's easier for an AU citizen to get a visa (because there's a special program for them), but you haven't said why it's easier for an EU citizen to get one. Please back up your claim.

Re: Ask HN: How to increase SWE salaries in Europe?

#224

Earlier quoted context omitted.

EU engineers should vote with their feet. That's the only way.

But they don’t because having an average pay in Europe is still preferable to having a high pay in America.

I suspect you don't have any evidence for this claim. Looking at immigration numbers, a far higher percent of Europeans move to America than Americans move to Europe.

Re: Ask HN: How to increase SWE salaries in Europe?

#225

I got my higher education for free. I expect to save nothing for my children or their education. I expect to have to put aside very little for retirement. The thing is, I just can’t find an argument why I should be able to get very rich doing my job. It’s a comfortable job. It pays a good salary. I got here by taking no risk at all. I wouldn’t want to switch jobs just to drive up my pay even if I could. I have other…

You are taking a risk. The risk is that you assume your government will be able to provide you with a comfortable life even when you can no longer work. And when the time comes for your children to get higher education and retire themselves eventually you hope the government will also be there to step in.

It works, until it doesn't. In America you can compensate yourself for this risk by simply getting a job where you are paid a higher salary than the average. Then you don't really care what happens with the social safety net, you've already hedged against it by saving and investing for yourself, and possibly becoming very rich.

Personally I'd be stressed if I were in your position. Government welfare isn't some liquid asset. If you decide you want to go live in some other country with a higher standard of living, such as the United States, is your government going to give you $100k or more to go start a life there at the same standard of living you're used to? I doubt it. You'll have to start from scratch, little to no savings, no real credit history, and paying much more for things that were a lot cheaper back in your home country. And if you were to retire in the US, I have a dim view of your future if you have no savings for retirement. If you are already close to retirement and haven't saved anything, you simply will not be able to retire.

Basically you're locked in to your home country, and have no realistic options for leaving unless you become richer. If the country goes to shit, so do you. This is not the case somewhere like America, where how well off you are is decoupled from how the country is doing as a whole. Government risk is eliminated, your cash flow and net worth is all that matters. That's much easier to understand and helps you sleep at night.

Be careful.

Re: Ask HN: How to increase SWE salaries in Europe?

#226
Costs don't scale linearly with size when you're a tech company that doesn't make physical objects, so large tech companies are insanely profitable because their revenue goes up a lot faster than their costs as their grow. Even small companies can raise a ton of funding if investors think they have the potential to become very big. Some of this money trickles down to the engineers.

It's a lot easier for US companies to become large because the domestic market is huge and there is a common language and regulatory framework. The EU does have a common market but there are still more language/regulatory barriers to expansion than in the US. The EU is also much poorer than the US. France has a lower GDP per capita than Alabama, and they are one of the wealthier EU states. This means it's harder to make money selling to European consumers.

Re: Ask HN: How to increase SWE salaries in Europe?

#227
1. The culture around equity should be changed. There are too many companies where employees are only offered equity if they ask for it, and people don't understand it. We can educate the SWE community about matters of financial literacy and normalise equity for all full time employees. I personally will not accept a job at any company without equity.

2. Focusing on salary. We need a european alternative to glassdoor and it needs to become popular. People need to know what they are worth. We are quite shy when it comes to discussing salary. TC info is more readily accessible in the US.

3. Europe needs to grow tech giants that demand top tier talent. That's the main problem with Europe, there isn't a huge amount of ambition to home grow 100bn+ companies that attract the best talent globally. Europe is at a disadvantage because it takes fewer risks and it's also more likely to sell out before reaching tech giant status. We are all using Google, Facebook (or some product of) and Amazon (in countries where amazon can effectively avoid taxes). And the UK sold off ARM, though there is ongoing discussion about that.

If you look at industries that are world leading (i.e banking in London for example), you'll find opportunities to double or triple your salary. Turns out that enough of us are turned off by the idea of working in the banking sector that it doesn't appear to translate into pressure for talent. We are also very well educated so it's not as hard to find people

Re: Ask HN: How to increase SWE salaries in Europe?

#228
post #100

Asking: Do European tech companies just offer lower salary, or do they also offer less equity? In the US, most people I know made a significant chunk of their wealth from their equity growth, especially as equity grants grow much more than salary, as people get promoted.

Equity is not really as thing, most companies you end up working for are not publicly traded and if they are of that size they're generally not offering equity to hire you.

We tend to say: stock doesn't pay the rent.

Re: Ask HN: How to increase SWE salaries in Europe?

#229
post #213

Earlier quoted context omitted.

I am a W2 employee for a consulting firm. They pay me a salary with some benefits and some vacation time and bill be out to clients. I'd say it's a cultural thing why we don't use it. Working hard and making big money is the dream. I'm not saying my company forces me to not take the vacation time. Heck they try to tell us all to use it more! (PTO is a liability on the books, FYI). But culturally, it's just not a prio…

Work to live, don't live to work. Your company at the end of the day doesn't care about you, those 5 weeks you could've spend on a trip doing a hike or just chill on the beach. That is what you'll remember later in life. That deadline you crushed, your boss enjoyed but won't be remembered in a few years, and if your "team needed you" comes up, your company overworks you and needs to hire additional staff.

I don't disagree. And I mean this much more generally, I have worked quite a long time for quite a lot of companies. The amount of PTO that is given up, which I was privy to, was staggering.

The interesting thing is I used to try to force people who worked for me to take more time off and they would complain. I think in many ways it was the example I set, which was bad, of always working. It's a regret I honestly have. I'm also happy now that I am just an individual contributor. I don't have to try to change that culture anymore. I only need to change me.

Re: Ask HN: How to increase SWE salaries in Europe?

#230

Earlier quoted context omitted.

As far as my experience goes, managers make about the same, or less, as an engineer at a similar experience level. They may end up at a higher compensation level if far enough in the career ladder, but I don't think it's significant in the bigger picture. The average CEO earnings in the Netherlands, including bonuses, is only 5x-6x the average engineer salary.

That’s mind blowing

That's the way it used to be in the US, too.
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