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Should you get paid more?
I believe that one of Europe’s biggest challenges when attracting Talent is low salaries.
(Thread)
I believe that one of Europe’s biggest challenges when attracting Talent is low salaries.
(Thread)
Data is clear.
Tech salaries in Europe are lower than in the US, even adjusted by cost-of-leaving.
Why? Less tech companies, more talent, better safety net.
I call this the Europe Trade-off: lower salaries in exchange for a better quality of life.
Tech salaries in Europe are lower than in the US, even adjusted by cost-of-leaving.
Why? Less tech companies, more talent, better safety net.
I call this the Europe Trade-off: lower salaries in exchange for a better quality of life.
And it made sense.
Each country was an isolated Talent Market. If you lived in City ABC comp was determined by supply/demand in that market.
You were restricted to a Geo Area so if market-rate was €34k then that's what you were worth (at that place in that point in time).
Each country was an isolated Talent Market. If you lived in City ABC comp was determined by supply/demand in that market.
You were restricted to a Geo Area so if market-rate was €34k then that's what you were worth (at that place in that point in time).
Time and Place have a BIG impact on compensation.
Imagine City A, B, and C over time:
A –––①––––––––––––>
B ––––––––––––②–––>
C ––––––––③–––––––>
Your compensation would be different ①, ② and ③ even if everything else remained equal (skills, nationality, age).
Imagine City A, B, and C over time:
A –––①––––––––––––>
B ––––––––––––②–––>
C ––––––––③–––––––>
Your compensation would be different ①, ② and ③ even if everything else remained equal (skills, nationality, age).
How do we change that?
You can’t move back to a different point in time in the past but you can either:
(A) wait for a different point in time in the future
(B) access a different Talent Market (by moving or working remotely)
You can’t move back to a different point in time in the past but you can either:
(A) wait for a different point in time in the future
(B) access a different Talent Market (by moving or working remotely)
A decade ago, if you wanted $200k/y you either waited or moved to Silicon Valley.
But that's changing.
Nothing stops you from joining @stripe (avg. salary €173k/y) renting an 8-bedroom French castle for €2.5k/m and have and still have €11,9.k. https://www.zumper.com/blog/6-castles-that-are-cheaper-to-rent-than-an-apartment-in-sf-or-nyc/
But that's changing.
Nothing stops you from joining @stripe (avg. salary €173k/y) renting an 8-bedroom French castle for €2.5k/m and have and still have €11,9.k. https://www.zumper.com/blog/6-castles-that-are-cheaper-to-rent-than-an-apartment-in-sf-or-nyc/
The other side of that that is that, if you are a company, you need to start thinking long and hard about how you compensate employees.
• @stripe – €173k
• @buffer – €99k
• @automattic – €105k
• Barcelona – €44k
• Paris - €39k
What do you think will happen?
• @stripe – €173k
• @buffer – €99k
• @automattic – €105k
• Barcelona – €44k
• Paris - €39k
What do you think will happen?
This is a lesson on trade-offs, supply and demand, and mobility.
More (including the consequences of getting left behind) on a previous edition of Seedtable. https://editions.seedtable.com/european-tech-salaries/
More (including the consequences of getting left behind) on a previous edition of Seedtable. https://editions.seedtable.com/european-tech-salaries/
