Pave reposted this
๐ ๐จ๐ซ ๐๐ฆ๐๐ซ๐ข๐๐๐ง๐ฌ, ๐๐ข๐ซ๐ข๐ง๐ ๐๐ซ๐ข๐ญ๐ข๐ฌ๐ก ๐๐๐ฅ๐๐ง๐ญ ๐๐๐ฌ ๐๐๐ฏ๐๐ซ ๐๐๐๐ง ๐๐จ๐ซ๐ ๐๐ญ๐ญ๐ซ๐๐๐ญ๐ข๐ฏ๐ Happy July 4th. At this time 248 years ago, the main import/export debate between England and the US was centered around tea leaves and Boston. โ๐๐ ๐ก๐๐ฅ๐๐ก๐๐๐ ๐ค๐๐กโ๐๐ข๐ก ๐๐๐๐๐๐ ๐๐๐ก๐๐ก๐๐๐โฆโ 248 years later, the modern-day import/export debate is around how to hire offshore talent in the UK. ๐๐ก๐ฒ ๐ข๐ฌ ๐ข๐ญ ๐ฆ๐จ๐ซ๐ ๐๐ญ๐ญ๐ซ๐๐๐ญ๐ข๐ฏ๐ ๐ญ๐ก๐๐ง ๐๐ฏ๐๐ซ ๐๐จ๐ซ ๐๐ ๐๐จ๐ฆ๐ฉ๐๐ง๐ข๐๐ฌ ๐ญ๐จ ๐ก๐ข๐ซ๐ ๐ข๐ง ๐๐ง๐ ๐ฅ๐๐ง๐? The Pound (GBP) is at one of its weakest states ever relative to the USD. Today the exchange rate is ~1.27, down from ~2.1 in 2007. Many things have contributed to this trend including the 2008 global financial crisis, Brexit, and interest rate differentials in favor of the USD. A silver lining for England? A weaker currency is good for exportsโincluding labor. ____________ ๐๐จ๐ฐ ๐ญ๐จ ๐๐จ๐ฆ๐ฉ๐๐ง๐ฌ๐๐ญ๐ ๐๐ ๐๐ฆ๐ฉ๐ฅ๐จ๐ฒ๐๐๐ฌ Keen to get in on the fun and start hiring in England? Letโs take a look at UK comp on three dimensions, all directly from Pave's market data. 1๏ธโฃ ๐๐๐ฏ๐๐ฅ ๐ โ ๐๐ซ๐จ๐๐ ๐ ๐๐จ ๐๐ข๐๐. First, consider the broad-based geo diff between the USA and the UK. According to Paveโs Global Location Insights product which triangulates across real-time data points from almost 8k customers, ๐ญ๐ก๐ ๐๐ซ๐จ๐๐ ๐๐๐ฌ๐๐ ๐ ๐๐จ ๐๐ข๐๐ ๐๐๐ญ๐ฐ๐๐๐ง ๐ญ๐ก๐ ๐๐๐ ๐๐ข๐๐ซ ๐ ๐๐๐ซ๐ค๐๐ญ๐ฌ (๐๐๐, ๐๐ , ๐๐ญ๐) ๐๐ง๐ ๐ญ๐ก๐ ๐๐ ๐ข๐ฌ ๐.๐๐. So, if an employee is making $100k in one of your USA - Tier 1 office locations, as a general rule they should be making $63k (or ~ยฃ49 GBP) in the UK 2๏ธโฃ ๐๐๐ฏ๐๐ฅ ๐ โ ๐๐๐จ ๐๐ข๐๐๐ฌ ๐๐ฒ ๐ฃ๐จ๐ ๐๐๐ฆ๐ข๐ฅ๐ฒ. Different job families are subject to different labor market forces around the world. For instance, while the geo diff for USA โ UK average across all job families is 0.63, it is ๐.๐๐ ๐๐จ๐ซ ๐ฌ๐จ๐๐ญ๐ฐ๐๐ซ๐ ๐๐ง๐ ๐ข๐ง๐๐๐ซ๐ข๐ง๐ , ๐.๐๐ ๐๐จ๐ซ ๐ฌ๐๐ฅ๐๐ฌ (๐ฐ๐จ๐๐ก), ๐๐ง๐ ๐.๐๐ ๐๐จ๐ซ ๐๐๐จ๐ฉ๐ฅ๐ ๐๐ฉ๐๐ซ๐๐ญ๐ข๐จ๐ง๐ฌ. The main callout here is that UK sales comp is much closer to the USA whereas other job families (including software engineering) have a larger geo discount. This generally makes sense given that Sales compensation is so tightly coupled with the mathematics of how much $ a rep hunts and is likely less influenced by localized labor market forces. 3๏ธโฃ ๐๐๐ฏ๐๐ฅ ๐ โ ๐๐๐จ ๐๐ข๐๐๐ฌ ๐๐ฒ ๐ฅ๐๐ฏ๐๐ฅ. Lastly, you should consider how the geo diff varies based on the level within a job family. As a general principle, ๐ฆ๐จ๐ซ๐ ๐ฌ๐๐ง๐ข๐จ๐ซ ๐ซ๐จ๐ฅ๐๐ฌ ๐ข๐ง ๐๐ง ๐จ๐๐๐ฌ๐ก๐จ๐ซ๐ ๐๐จ๐ง๐ญ๐๐ฑ๐ญ ๐ก๐๐ฏ๐ ๐ ๐ฌ๐ฆ๐๐ฅ๐ฅ๐๐ซ ๐ ๐๐จ ๐๐ข๐ฌ๐๐จ๐ฎ๐ง๐ญ than their junior counterparts in the same job family. However, donโt take this for granted; it is prudent to go deep and conduct a family-by-family analysis yourself. See the attached analysis for an example. #pave #marketdata #benchmarks #comp #uk
Mindy Wei
1mo
This huge difference in compensation is also why I see so many UK-based people moving to the States.
James Jennings
1mo
Re: tech job family diffs: there are two ways to frame this: 1) There's a steeper discount for international tech talent. But I actually think a more accurate read is this: 2) US tech companies place an insane premium on local tech talent.
Charlie Nelson
1mo
Great breakdown and very timely as we're expanding our customer-facing teams into the UK.
Vishal Rana
1mo
Quite tounge in cheek for a late day post on July 3rd.
Ashish Raina we were just talking about hiring in London...
Very helpful!
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1moSeeing very similar data in Australia