In the first half of this year, we’ve covered AI/ML Pay Premiums & Salary Structures for Engineers, but this month we’re looking at how different types of engineers are paid at private companies… and how the compensation shifts as they move up the career ladder.
We’re digging into six different job families – software, systems, electrical, mechanical, quality and R&D – across four levels – associate, engineer, senior and lead/principal to see how the median total cash shifts. All data was pulled from the Thelander Private Company Compensation dataset on the Thelander platform.
Housekeeping item: Thelander defines total cash as a combination of base pay + bonus, or just base salary if no bonus was awarded. Each data on the platform includes each individual comp lever plus the number of data points.
First Up: Associate Engineers
At the entry level, the overall median total cash is $90,000. The difference in job title are relatively small overall, ranging within ~$10,000 of each other across various titles.
- Systems engineers are making the most at $92,000, followed by electrical and R&D
- Mechanical, software and quality engineers come in slightly below the overall median – ranging from $85,000 to $83,200
Key takeaway: What kind of engineer you are at the entry level matters much less than your level.
Engineer II: Biggest Divergence at the Median
This is where the data starts to get interesting. The overall median has increased to $110,000 – and software engineers are coming in $20,000 higher at $130,000 in total cash.
- Systems engineers aren’t far behind at $119,954, followed closely by electrical and mechanical engineers.
- Quality and R&D engineers are on the lower end, slightly below the overall median.
Senior Engineers: Software Engineers 🤝 Electrical Engineers
Not to be outdone, senior electrical engineers are ~$16,000 more than the overall median at $164,639, followed closely by senior software engineers.
- R&D engineers moved up to third, closely followed by systems engineers
- Quality and mechanical picked up the rear, hovering within $1,000 of each other in terms of median total cash
The biggest difference in median total cash can be seen between senior electrical and software engineers and the remaining four titles.
Lead/Principal Engineers: Another Shakeup
Last, but certainly not least, the lead/principal engineers. Systems engineers move into the highest paid position at the median, but what’s interesting is that all of the titles except for quality are around or above the overall median of $180,426.
All of the lead/principal engineers are within ~$11,000 of each other, ranging from $180,000 to $190,782. This tells us that engineers with more experience, the actual job title is less relevant than the level of seniority.
What’s the bottom line? Compensating your engineering employees looks different at every level, and the job title can make a difference – but it depends on the level of seniority. The biggest divergences show up in the middle of the ladder at engineer and senior engineer, with less at the entry level and lead roles.
To see how equity comes into the mix, or how your current staff-level compensation compares to market, participate in the no-cost Thelander Private Company Compensation Survey today. You’ll get access to real-time benchmarks for all the job titles you input data for.