Early-Stage Startup Salary Breakdown for Tech Roles
Have you ever felt like you're not being paid what you're worth? Do you find yourself comparing your salary to others? If so, you've come to the right place!
Aditi Sharma
Sep 12, 2024 • 7 min read
Have you ever felt like you're not being paid what you're worth? Do you find yourself comparing your salary to that of your friends and colleagues? If so, you've come to the right place!
Today, we are going to discuss all about salary, your expectations – well, not really– but all about how well you are compensated at your current job, and what factors decide how much you get paid broadly.
Salary components at a startup:
When it comes to startup compensation, you've got the usual salary and benefits, but the real draw is the equity – a stake in the company that can potentially be worth a lot if the startup succeeds. Of course, the catch is that equity isn't a sure thing, and startups can be risky businesses.
How do you determine your next salary?
Figuring out your salary expectations for a startup job involves taking into account a few key things: your experience, your skills, and the cost of living in the area.
It's also smart to research salaries for similar jobs at other startups, so you have an idea of what's competitive. Also, do consider the compensation for in-office and remote jobs.
No further ado, let’s see what your salary should be at an early-stage startup:
Early-stage startup salary:
Early-stage startup salaries, while often lower than those offered by established corporations, reflect a unique compensation structure. Apart from traditional salary and benefits, startups typically offer equity, providing employees with a stake in the company's potential success. This equity can prove immensely valuable if the startup thrives Our comprehensive data, sourced from reputable sources like Payscale and Radford showcases salary ranges across various roles in different countries. Understanding your worth at an early-stage startup involves considering factors such as experience, skills, and regional cost of living. Dive into our detailed breakdown to gain insights into what to expect in compensation within the dynamic world of early-stage startups.
India | USA | UK | Canada | China | South Africa | |
---|---|---|---|---|---|---|
Salary Range (INR) | Salary Range (USD) | Salary Range (GBP) | Salary Range (CAD) | Salary Range (CNY) | Salary Range (ZAR) | |
Designer | 300k - 600k | 80k - 120k | 35k - 55k | 60k - 90k | 300k - 500k | 300k - 500k |
Developer | 400k - 800k | 100k - 150k | 40k - 65k | 70k - 110k | 400k - 600k | 400k - 600k |
Product Manager | 500k - 1M | 120k - 180k | 50k - 75k | 80k - 130k | 500k - 700k | 500k - 700k |
Engineer | 600k - 1.2M | 140k - 200k | 60k - 85k | 90k - 150k | 600k - 800k | 600k - 800k |
QA Tester | 200k - 400k | 60k - 90k | 30k - 45k | 40k - 60k | 200k - 300k | 200k - 300k |
SAP Consultant | 700k - 1.4M | 160k - 220k | 70k - 95k | 100k - 170k | 700k - 900k | 700k - 900k |
Salary Components at a Startup in 2024
When it comes to startup compensation, you've still got the usual salary and benefits, but the equity component remains a significant draw. However, the landscape has shifted:
- Base Salary: Many startups are offering more competitive base salaries to attract talent in a tighter job market.
- Equity: While still a key component, the perceived value of equity has been tempered by recent market volatility.
- Benefits: There's an increased focus on comprehensive benefits packages, including mental health support and flexible work arrangements.
Different stages of startup and their salaries
The relationship between company maturity and compensation seems pretty straightforward - more mature, more money. However, the increase in pay between stages tends to get smaller as companies mature.
Hold on! This is not it.
Salaries based on experience:
Let’s see some data based on the experience level (based on the USA):
All data is taken from the internet – Payscale.
Years of Experience | 0-1 | 1-3 | 3-5 | 5+ |
---|---|---|---|---|
Designer | 50k - 70k | 70k - 90k | 90k - 110k | 110k+ |
Developer | 70k - 90k | 90k - 110k | 110k - 130k | 130k+ |
Product Manager | 80k - 100k | 100k - 120k | 120k - 140k | 140k+ |
Engineer | 80k - 100k | 100k - 120k | 120k - 140k | 140k+ |
QA Tester | 50k - 70k | 70k - 90k | 90k - 110k | 110k+ |
Data Scientist | 80k - 100k | 100k - 120k | 120k - 140k | 140k+ |
Surprisingly, the size of a company's tech department doesn't have a huge impact on compensation.
Graph and insights are taken from Creandum.
Startups vs. Corporate
If you are someone who is coming from a corporate company, then this graph can give you a broad insight into how salaries differ for the roles at the different organization levels.
Startups are usually tight on cash compared to big companies, so they can't pay super-high salaries. Instead, they offer equity, which can be more valuable than a higher salary in the long run.
Job Title | Startup Salary Range (USD) | Corporate Company Salary Range (USD) |
---|---|---|
Designer | 50k - 90k | 70k - 130k |
Developer | 70k - 130k | 90k - 160k |
Product Manager | 80k - 140k | 100k - 180k |
Engineer | 70k - 130k | 90k - 160k |
QA Tester | 50k - 90k | 70k - 110k |
Data Scientist | 90k - 160k | 110k - 200k |
Now, the only part left is to understand how broadly these salaries get calculated.
Let’s take an example of Buffer, and how they do it:
How does Buffer calculate salaries?
Buffer uses a salary formula to calculate everyone’s base pay, and it's designed to keep things fair and equal. This formula factors in your role and where you live, and gives out a salary that's fair for everyone.
Their formula is (your role) x (cost of living) = your salary.
Here's how they figure out how much to pay for each role:
- They compare each role to data from a company called Radford. Radford surveys a bunch of companies twice a year to see what they're paying their employees. They use data from San Francisco for role benchmarks because it's a really competitive job market there.
- And now for the cost of living factor, they take the benchmarked salary from San Francisco and multiply it by a factor that considers the cost of living in the employee's location.
- There are four geographical areas that they consider, and each one has a different cost of living compared to San Francisco.
This calculator is different for every organization. However, going through the surveys and reports is what is widely used, and that’s how organizations end up having similar ranges across the country.
The Tech Job Market in 2024: Slowdown and Recovery
The tech industry has experienced significant changes since 2022:
-
Slowdown and Layoffs: The industry saw major layoffs in 2022 and 2023, with over 200,000 tech employees losing their jobs. While the pace has slowed in 2024, caution remains.
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Market Correction: After the post-pandemic boom, many companies are right-sizing their workforce, leading to more strategic hiring practices.
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AI Impact: The rapid advancement of AI has led to job displacement in some sectors, but also created new opportunities in AI development and implementation.
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Remote Work Evolution: The shift towards remote and hybrid work models has stabilized, influencing compensation structures based on location.
How Startups Are Adapting Their Compensation Strategies
- Location-Based Pay: With remote work now common, many startups are adjusting salaries based on employee location.
- Skills-Based Compensation: There's a growing trend towards compensating based on specific high-demand skills rather than just job titles.
- Retention Bonuses: To combat turnover in a volatile market, some startups are implementing retention bonus structures.
- Flexible Benefits: Offering customizable benefits packages to cater to diverse employee needs.
Negotiating Your Salary in 2024
- Research Thoroughly: Use platforms like Glassdoor, PayScale, and industry-specific salary surveys to understand current market rates.
- Consider Total Compensation: Look beyond base salary to equity, benefits, and growth opportunities.
- Highlight Your Skills: Emphasize skills that are in high demand, especially those related to emerging technologies.
- Be Flexible: Consider negotiating for other benefits if there's limited flexibility on base salary.
If you're starting out and nervous about negotiating salary, you're not alone! It can feel intimidating, but it's worth advocating for yourself to get the compensation you deserve, to learn more about it, head over to - Negotiating your first salary.
Conclusion
While the tech job market has faced challenges, early-stage startups continue to offer competitive compensation packages to attract top talent. As you navigate your career in 2024, stay informed about industry trends, be prepared to showcase your unique skills, and consider the total compensation package when evaluating opportunities.
It's essential to do your research and stay informed about competitive salaries in your industry and find more relavant jobs and remote opportunities in startups accordingly. Remember, in the dynamic world of startups, your skills, adaptability, and potential for growth are often as valuable as your current market rate.
Happy job hunting!