What Do Great Engineering Managers Need To Know About Compensation and Equity?

Today we’re going to do a whirlwind tour of compensation. Hopefully, you’ll learn a bit along the way, and I’ll share an exercise for managers called a compensation review.

What Do You Need To Know About Salary?

  • The largest expense for engineering organizations is usually salary. 
  • Salary is mostly determined by supply and demand. Engineers are fortunate to be an industry with high demand. Companies have to compete based on salary and benefits in order to hire good engineers. 

Structured Pay and “Pay Equity”

Some companies use structured pay. Structured pay is when there is a “system” for determining pay:

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