Scouut's Half Year 2024 Software Salary Guide! (For Start-Ups & Scale-Ups)
Hello - Matt, Co-Founder of Scouut again!
6 months of 2024 down, another 6 to go, and it’s been an eventful half year to say the least (more on that to come in our EoFY Market Update next week!)
As always, comp and salary levels have been a major talking point in my conversations recently, and for good reason too, given there’s been significant movement happening over the past few weeks and months.
Today we’ll be bringing you up to speed, and making sure you’re well aware of what the market’s high performers are moving for in the current climate.
And if you want the TL/DR - almost all salary levels are peaking higher than ever seen before, including during the post Covid boom.
Want the specifics? Best be reading on then!
In case you don’t know who Scouut are, or where our data comes from.
Scouut is the Talent Partner for Technology & Design positions in the start-up & scale-up space, and we’re the recruiters behind the tech talent at some (many) of Australia’s most famous start-up & scale-up success stories.
The data being showcased in this guide is based on real salary information, from real candidates and clients that we’ve partnered with in recent months.
We aren’t interested in self reported salaries that are often inaccurate.
Nor do we put stock into the salary ranges displayed for advertised roles that do not get filled.
Our salary data is pulled solely from accepted job offers, as these are the only figures that truly reflect what strong talent is moving for in the current market.
A handful of things worth mentioning:
Now without further ado, let’s begin!
Median average is the most accurate and relevant figure, and is noted in (brackets)
Each job title has been given a definition that we (and most of our clients) work toward. Again, this isn’t gospel, but it should help you get a better grasp of how the market defines the relationship between a title and it’s respective responsibilities.
Junior: Average experience 6 months - 2 years:
Not to be confused with entry level, Junior candidates have commercial experience. Large amounts of training will absolutely be necessary, and they are unlikely to be able to deliver much of value without significant help.
Front End: $85K-$110K ($100K)
Full Stack: $90K-$110K ($100K)
Back End: $95K-$110K ($105K)
Mobile: $85K-$110K ($100K)
(In all honesty, demand at this level is almost always very low for us, and our data is quite limited, so take the above with a pinch of salt).
Trend: Junior roles started the year off the back of a slow downward trend. For now, things have remained stable, but it’s not a great market for inexperienced talent to begin with, as almost all companies are focused on securing more experienced hires.
Junior-Mid, average experience 1.5 - 2.5 years:
Stepping up a little, Junior-Mid level candidates have respectable experience under their belts, and most importantly, solid exposure to how technology teams operate within a business. They are starting to gain independence, but still need a lot of guidance and help.
Front End: $105K-$125K ($115K)
Full Stack: $110K-$130K ($120K)
Back End: $110K-$130K ($120K)
Mobile: $110K-$130K ($120K)
Trend: Ever so slightly up. Demand has been steady, but low, similar to ‘Junior’ positions, with the small salary increases we are seeing mostly as a result of the knock on effect from growth at more Senior levels. All in all, there is still fairly good candidate availability at the Junior-Mid level.
Mid, average experience 2.5 - 4 years:
For our clients, the most important skill that a Mid Level engineer brings to the table is the ability to work autonomously, with the sense to recognise and research their own mistakes. They still get stuck and need a hand here and there, but it’ll be less frequent, and they can bring much more value to the table without constant shadowing.
Front End: $125K-$145K ($135K)
Full Stack: $125K-$150K ($140K)
Back End: $130K-$150K ($140K)
Mobile: $130K-$150K ($140K)
Trend: Slightly Up. Mid level salaries have been mostly stable over the past 6 months, but, particularly over the past month or so, we have started to see quite a noticeable change in demand (and comp on offer) at this level. We believe this is partially down to a recovering market and the bounce back associated with that, but also as a result of higher salaries further up the ladder and the knock on effect that’s taking place.
As you will see, the salary increases for more senior titles are significant, and so to an extent, the cost of more senior talent may be becoming somewhat prohibitive for those with tighter budgets.
Mid-Senior, average experience 3.5 - 5.5 years:
Often not far from being the finished product, a Mid-Senior level engineer can deal with 90% of obstacles put in their path, usually only having to ask help for problems they have never seen before. Code quality is rarely an issue, and the training needed at this level is limited.
Front End: $150K-$165K ($155K)
Full Stack: $155K-$170K ($160K)
Back End: $155K-$170K ($160K)
Mobile: $150K-$165K ($155K)
Trend: A significant increase across the board. In our most recent experience, top end salaries for Mid-Senior level Engineers are peaking beyond levels that we have ever seen before.
However, there is a very notable preference for high potential engineers (understandably), and in particular, engineers that have a strong determination to progress through to Staff level and beyond, with the right training and support.
In the past, demand for Mid-Senior Engineers has mostly been from businesses that ideally want a Senior, but can not afford them. In the current market, most of the demand is coming from very top-heavy teams, that are prepped and primed for a high potential engineer that can be mentored.
Senior, average experience 5.5 - 7 years:
The finished article. Senior Engineers identify problems and deliver solutions. They will rarely need assistance with anything, and can act as a point of expertise for other engineers in the team. Often times, they will help with interviews, code reviews, and other non hands on tasks.
Front End: $170K-$180K ($175K)
Full Stack: $175K-$190K ($180K)
Back End: $175K-$200K ($185K)
Mobile: $170K-$190K ($175K)
Trend: Significantly Up. As with Mid-Senior Engineers, salary levels for Senior Engineers are at an all time high. Most of this growth has come over the past couple of months, but it is a trend that we have slowly been seeing throughout all of 2024.
However, it is key to note that for the higher end of these bands, very solid experience with System Design and Architecture fundamentals are a must. We have heard reports of many ‘Senior by title’ Engineers being classed as Mid-Level recently, as they are lacking experience in these areas.
As usual, candidates with less common but still in demand skillsets (Golang, Rust, Kotlin, very back-end focused TypeScript for example) or exposure to certain industries such as AI can secure close to the top of the range quite comfortably.
Staff, average experience 7 - 8 years+:
Not many engineers reach this level for a number of reasons, but those that do develop further expertise in specific areas beyond what is expected of a Senior Engineer. Often they sit at the same level as Lead Engineers, without people leadership responsibility. No matter how their role is defined, they have progressed beyond their Senior level peers, and expect the financial reward for it. You could call it a “Senior Senior Engineer” if you like.
Front End: $190K-$220K+ ($200K)
Full Stack: $190K-$220K+ ($215K)
Back End: $190K-$220K+ ( $215K)
Mobile: $190K-$220K+ ($205K)
Trend: Significantly Up. Whilst salaries are up, demand for Staff Level Engineers has actually cooled slightly from the start of the year, more than likely as a result of the increase in expected salary and comp levels. However, compared to this time last year, the demand is far higher than what the market has generally been used to, and Engineers at this level are very aware of what they are worth.
Whilst demand to secure these Engineers has dropped slightly, counter offers have become quite common, and a willingness to go above and beyond to keep existing Staff Engineers in the team is very palpable.
Often when figures like this are presented, I am met with a scoff and a ‘how are we supposed to match these mega rich big tech businesses?’. Please make no mistake, the demand for Staff Engineers is across the board, and one of the biggest players (and payers) are pre-Series A start-ups.
Principal, average experience 8-10 years+:
In a bit of a world of it’s own, sitting almost at CTO level, whilst remaining very hands on. Likely to be the most Senior developer within the business, focusing on big picture thinking, product architecture, roadmap setting and overall elevation of the tech team’s capability, whilst not needing to get bogged down in CTO responsibilities such as budgets, hiring & firing, supplier negotiations and so on.
Whilst a Principal Engineer will likely add value to all technical teams and verticals across a business, it is unlikely that they will have any direct reports.
Salary: Typically within the $230K-$250K range.
Trend: Slightly Up. As the role of a ‘Principal Engineer’ gets more defined in Australia, many businesses are realising they would prefer a Staff Engineer for their specific needs. However, where a Principal Engineer is required, it is the only sensible choice, and the money demanded is in line with the impact sought from a hire at this level.
Something worth noting is that many start-ups seem to conflate and confuse a Lead Engineer and a Principal Engineer. As you will see, this is quite problematic, given there is often a salary discrepancy of up to about $60,000.
Lead, average experience 7 - 8 years+:
Often still somewhat hands on, but the primary focus is technical leadership across a small team/squad. Usually no budgetary responsibility at this stage, but still focused heavily on mentoring, training, and improving the ability of others. Front, back or full stack makes no notable difference at this level.
Web: $170K-$190K+ ($180K)
Mobile: $170K-$190K+ ($180K)
Both: $180K+ ($180K)
Trend: Mostly Unchanged. “Lead” level is still the hardest hit when it comes to demand. It was one of the worst casualties of the redundancies in 2023, and we are still finding that most businesses are choosing to hire Staff or Principal engineers instead where they can afford to.
Where that’s not an option, hiring a Senior and giving them a Lead title seems to be the preference over hiring an existing Lead.
Lead Engineers are the only engineers that we are still seeing take salary cuts to secure work.
As mentioned above, there are a fair few companies attempting to hire Staff or Principal Engineers on a Lead title, but this is mostly attracting Senior Engineers, as the salary difference for candidates at other experience levels is far too large to be attractive.
Founding Engineer, average experience ?…
A ‘Founding Engineer’ is typically (not always) the first engineer being employed by a start-up. As a result, the business is almost always at Seed stage, and under 5 people.
Experience wise, it varies greatly, and we have placed Mid Levels through to Principal Engineers into ‘Founding’ roles, but most commonly, it has been a Staff level engineer that has secured the job.
It's a very niche role that doesn't really follow the usual rules from a salary perspective, and can be very equity dependant (but not always).
Founding Engineer placements over the past 6 months have varied from $150K-$230K + Super + Equity. Equity has been between 1-1.5%.
If you're thinking about hiring a Founding Engineer, we'd strongly suggest a conversation with us, where we can answer any and all of your questions based on the successful (and unsuccessful) examples we have seen.
It's perhaps the most important role you’ll ever need to hire for, and without a doubt one of the hardest to get right.
Finally, here’s some other trends to keep in mind:
An Exciting Announcement!
Over the past few months, we have been working hard on something that we’ve never done before, and that we truly believe will bring immense value to start-up Founders and Hiring Managers across Australia.
We’re delighted to announce our upcoming book, outlining the secrets and strategies we use with our clients to consistently beat the competition to Australia’s best Software Engineering talent.
Start Up Hiring Blueprint: The Secrets of Recruiting Elite Software Engineers (the name might change, suggestions welcome!) will be releasing to the public in the coming weeks for less than the price of a couple of coffees!
We’ll break down everything you need to know about hiring Australia’s best Software Engineers from a start-up centric viewpoint, and address some of the most common misconceptions, mistakes and challenges that we help clients overcome every week.
If you’re even remotely involved across software hiring in start-ups, you’ll absolutely want to pick up a copy, and can register your interest via the quick Google Form below for 15% off, as well as a notification when the book is available to purchase.
https://forms.gle/Thr7itE4yeTH8fD16 - ?? Register your interest here!
Thanks for reading!
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For those that are new here, I post (mostly) fortnightly content, addressing the nuance, challenges and secrets of placing talented engineers and designers into Australia’s best start-ups & scale-ups.
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