The technological salaries in Spain They no longer depend so much on how good you are at programming, but on the type of company you work for. The same senior profile can earn from figures typical of a small traditional SME to salaries that compete with the best engineers at Google or Meta, just for changing the type of company.
At least that theory is what emerges from a salary analysis carried out by the technological employment platform Manfred, based on the observations of a former Uber engineer: in technology there is not one type of salary, but there are three, and it depends on the type of company in which you work.
The “trimodal” model of technological salaries. The “trimodal” concept explains that the technology salary distribution It does not form a uniform continuous line that brings together the entire sector, but rather three distinct groups with little overlap between them. Depending on what type of company you are working for, this is how good your salary will be.
The analysis is based on the observations of Gergely Orosz, former head of engineering at Uber, who analyzed on his blog the distribution of technological salaries in Europe and highlights that these groups arise from how each company decides to compare itself with the competition when setting compensation. If an SME only needs to compete against other SMEs, their salaries will be lower than those of large corporations that want to compete among themselves.
Manfred has adapted that model to the reality of salaries in Spain and shows that a senior engineer can earn from 35,000 euros to 130,000 euros gross annually depending on his company group, even carrying out a job with similar responsibilities. This division makes individual talent matter less than the company’s salary strategy, creating huge gaps for equivalent profiles.
Trimodal distribution of salaries in Spain. Source: Manfred
Group 1: local companies with technology as support. The companies in the first group see technology as an internal service, similar to an IT department and, at a salary level, they are only compared with close competitors in your sector.
In Spain, Manfred describes them as consultancies and large non-digital corporations, with basic selection processes and very hierarchical structures. This first group presents the greatest labor concentration of all of them, but offers the lowest salary rangeplacing 40,000 euros at its most common average. Given that their market is local, their salary structures are within the usual margins in Spain.
In this group, the work is predictable, with a good balance between work and personal life, but without significant variable incentives, beyond a possible 10% of the base salary linked to the company’s performance.
Group 2: “Scaleups” and technology companies. The second group brings together companies that compete with the entire local and some international technological fabric, raising their salary offers to attract talent or capture it among your competitors. This group includes technological startups that have already surpassed their maturity and are now seeking both national and international growth, with tougher and greater hiring processes. emphasis on autonomy.
The salaries of these companies no longer only compete for the best talent at a local level, but also expand it to a European level, which is why they usually offer salaries above 60,000 euros and offer bonuses of up to 20% of the base salary in cash and shares to more experienced engineers, although not always on a general basis. That is, their remuneration is slightly above the average in Spain.
Group 3: giants competing on a global scale. Companies in the third group measure themselves with the international market, attracting talent from anywhere in the world. We are talking about jobs in large technology companies such as Amazon, Uber, Google or Meta, as well as large financial entities that are developing large technological infrastructures.
In this group they are shuffled international level salaries in order to attract the best qualified talent regardless of their place of origin. However, to access these positions you also have to overcome much more competitive selection processes.
These firms offer salary ranges above 100,000 euros and cash bonuses of around 40% or 50% of the base salary are offered for those employees who achieve all their objectives and actions for all levels, even for junior employees.
Not everything is money, what career do you want? Beyond money, each group offers a very different style of work. In Group 1, local companies prioritize stability and work-life balance, with schedules that allow for some flexibilityin addition to offering a greater number of job offers.
Instead, Group 3 of global giants brings greater instabilitywith frequent rounds of layoffs when you don’t meet expectations and high turnover because they pay so much to attract only the best. Teleworking is a common practice in Groups 1 and 2, but the large corporations in Group 3 practically they have removed it of their offers and sometimes ask to move close to their main offices in Madrid or Barcelona.
The number of job offers in Groups 2 and 3 are much lower than those in Group 1, so it is also more complicated to access a company with these characteristics, making it difficult to jump from one company to another within that same group.
Image | Unsplash (Sigmund)
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