Pay Determination for Software Engineers: What Factors Should You Consider?

Hi all,

Please help me understand how to determine pay across levels. What factors are to be kept in mind for pay determination?

Waiting for a revert.

Hi Azurehr,

This is a very vast topic. Here are a few suggestions:

1. Have a professional benchmarking company like Mercer or Hewitt conduct a study and provide you with a report on salary parity in organizations similar to yours. Then, decide on the various salary ranges according to bandwidths.

2. Consider factors such as the technology/domain, qualifications, nature of the business, industry competitors, availability of skilled resources, etc.

3. It's essential to consider the HR budget for employee compensation. These factors determine the compensation received by certain professionals, e.g., software engineers.

What exactly are you looking for? Are you interested in factors affecting salaries or components of a salary, such as Basic/DA/PF, etc.?

If you search for salary breakups, you will find that this topic has been widely discussed and can be very helpful.

Regards,
Preeti

Thank you, Preeti, for your suggestions. I have recently joined a software company, and they want me to suggest suitable salaries for all positions based on market trends and the salaries paid by competitors.

Shieba