![]() ![]() #3: Big Tech: companies benchmarking against all regional or global companies. Only a smaller portion of this category offer meaningful equity to all engineers, though. Most of these companies will have a bonus scheme in place that pays up to 20% of the base salary in cash, and many offer equity to more senior engineers. For an entry-level role, this number would be €40,000-65,000. These companies would typically pay €75,000-125,000 total compensation (base salary + bonus + equity) for a senior engineering role in the Netherlands. In the Netherlands, examples of these companies would be eBay classifieds, Adyen, Nike, Disney Streaming, and well-funded, high-growth startups like Catawiki, FindHotel, Miro, MessageBird, TripActions would also be in this category. #2: Companies benchmarking against all local companies, even if they are not direct competitors. Engineers don't receive any equity - save for, perhaps, lead or principal positions in rare cases, and very little. Those that have will typically cap bonuses at 10% of the annual salary, and tie it to company performance. Most of these companies will pay a salary only: a fraction of them will have any bonus scheme in place. For an entry-level role, this number would be €25,000-40,000. In the Netherlands, these companies would pay €50,000-75,000/year for a senior engineering role in the Netherlands, everything included (apart from the hard-to-value early-stage startup equity). Startups with little capital and bootstrapped companies might fall in this category. They'd aim to pay right around or slightly above what the other local supermarkets, e-commerce sites and similar businesses pay. Examples would include IT teams for local supermarkets, or e-commerce sites and similar. Technology is not treated - or compensated - as a core competency at these companies. Most of these places call engineering as IT, and often view it as a cost center. #1: Companies only benchmarking against their local competition and non-tech companies, competing with their local competitors. Here is the split of the three groups of companies, based on their compensation philosophy: The range for #3 is almost entirely missing from most public salary data. A site that is better at capturing all three tiers is the one I'm building:. You'll find little to no compensation data on this third pillar on likes of Glassdoor, Payscale, Honeypot, Talent.io, Stack Overflow Jobs and other public job or salary portals. ![]() ![]() Which category does your workplace belong to? ![]() Most engineers are not aware of this third, Big Tech pillar and the compensation ranges it introduces, assuming compensation can not go beyond what is offered at the second pillar: There is no longer an "average" salary for software engineers in Europe / the Netherlands: just an average salary per one of the three, distinct categories. I'm seeing the software engineering compensation market becoming trimodal - split into three distinct groups that "spike" and that have little overlaps. Where is the disconnect? Tiers of Companies It's not just Uber: senior total packages have gone up by 50% from around €100,000 in 2016 to €150,000+, as part of the EU salary research I've been running (I'll share the survey reports in-detail in later blog posts - subscribe here to not miss it). Meanwhile, I've observed the average senior total compensation figures at Uber nearly double from €110,000 in 2015 to €170,000-€230,000/year by 2020. The 2021 Talent.io salary report puts the most experienced software engineering salaries in Amsterdam at €60,000/year. The 2019 Honeypot Amsterdam developer survey says, "the most experienced developers earn an average of €55,000 high as over €70,000". Interesting enough, many engineers did not notice any meaningful salary changes these years. The market - and compensation - for software engineers have moved upwards at an incredible pace over during this time. I've been a hiring manager at Uber, in Amsterdam, for over 4 years. ( Watch this article as video narrated by me, with additional context) Also see for data recorded for a growing number of countries in the three tiers. Update: dozens of hiring managers confirmed this trimodal model applies to all global markets: from the US, through Asia to Latin America as well. Menu The Trimodal Nature of Software Engineering Salaries in the Netherlands and Europe ![]()
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