There is a very loud cohort of devs who will roll their 4 (or whatever) years of stock options/RSUs into what they present as their annual salary number, greatly inflating it.
Typically the higher paying jobs are in very high cost of living areas
Not all do but these salaries simply dont exist here. Even when an american company hires in Europe they pay easily 50% over market. Stock is salary and most can be cashed out eventually.
Also FAANG salaries are also quite high in europe. Just look at levels.fyi. In local or non-tech companies in the US salaries are also much more in-line with europe and actual difference will be much much smaller
I can see statistics of US companies vs non US companies where I am and they consistently pay 30-80% above market value. I havent seen one go below 30% over. Its not only FAANGS. They just pay much more
Typically the higher paying jobs are in very high cost of living areas
This can’t be understated. Companies like Google, Microsoft, and Amazon can pay their entry level engineers in the US around $120k/year, but some sources state that the bare minimum salary to be happy in places like Seattle, where these engineers need to be located, is around $117k/year.
Apple earns $2.4m per employee per year… and most of their employees are sales/support staff. They don’t have hundreds of thousands working in R&D. The other big tech companies earn less, but still well above the salary for any employee except for C-level executives.
The reality is they should probably pay even more than they are. Every small tech company I’ve worked for spends nearly 100% of their revenue on salaries (without paying well compared to the big tech companies).
but some sources state that the bare minimum salary to be happy in places like Seattle, where these engineers need to be located, is around $117k/year.
Those sources also state that worldwide the number to be minimally happy is $95k. I’m going to assume Europe is at least at the global average and likely a bit above since the US on average is at $105k. So if you go by those studies then the new grad in Seattle making $120k is minimally happy while the seasoned engineer in Germany making $90k is not. Not that I agree but if we’re going by the study you mentioned then that’s the conclusion.
So if you go by those studies then the new grad in Seattle making $120k is minimally happy while the seasoned engineer in Germany making $90k is not.
Not really, that would be a silly comparison. Income influences happiness because it determines how/where you live, what you can afford in terms of basic needs, what’s your disposable income, etc. Some countries, due to the way their society is organized, offload more living expenses to their citizens and ultimately lead low earners to simply not afford some basic services. One example is of course access to healthcare. In Germany you have access to public health care and employers are required to pay social security contributions consisting of a percentage of what they pay you, and in turn you have far more affordable and accessible healthcare. Consequently, the $90k you’d get paid in Germany will ensure you have a better quality of life right from the start by the simple fact that a single trip to the doctor won’t bankrupt you.
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Not all do but these salaries simply dont exist here. Even when an american company hires in Europe they pay easily 50% over market. Stock is salary and most can be cashed out eventually.
Also FAANG salaries are also quite high in europe. Just look at levels.fyi. In local or non-tech companies in the US salaries are also much more in-line with europe and actual difference will be much much smaller
I can see statistics of US companies vs non US companies where I am and they consistently pay 30-80% above market value. I havent seen one go below 30% over. Its not only FAANGS. They just pay much more
This can’t be understated. Companies like Google, Microsoft, and Amazon can pay their entry level engineers in the US around $120k/year, but some sources state that the bare minimum salary to be happy in places like Seattle, where these engineers need to be located, is around $117k/year.
Apple earns $2.4m per employee per year… and most of their employees are sales/support staff. They don’t have hundreds of thousands working in R&D. The other big tech companies earn less, but still well above the salary for any employee except for C-level executives.
The reality is they should probably pay even more than they are. Every small tech company I’ve worked for spends nearly 100% of their revenue on salaries (without paying well compared to the big tech companies).
Those sources also state that worldwide the number to be minimally happy is $95k. I’m going to assume Europe is at least at the global average and likely a bit above since the US on average is at $105k. So if you go by those studies then the new grad in Seattle making $120k is minimally happy while the seasoned engineer in Germany making $90k is not. Not that I agree but if we’re going by the study you mentioned then that’s the conclusion.
Not really, that would be a silly comparison. Income influences happiness because it determines how/where you live, what you can afford in terms of basic needs, what’s your disposable income, etc. Some countries, due to the way their society is organized, offload more living expenses to their citizens and ultimately lead low earners to simply not afford some basic services. One example is of course access to healthcare. In Germany you have access to public health care and employers are required to pay social security contributions consisting of a percentage of what they pay you, and in turn you have far more affordable and accessible healthcare. Consequently, the $90k you’d get paid in Germany will ensure you have a better quality of life right from the start by the simple fact that a single trip to the doctor won’t bankrupt you.