Wednesday, September 13, 2006

The Salary Summary

Rahul, from the 2003 batch, had done a survey of the 2003 batch to get some information on the salaries, industries, and tried to arrive at a formula that would help predict the expected salary for someone in a company based on the number of years of experience he had and the size of the company.

Therefore, if someone has 10 years of experience, and works at Oracle (which has 55,000 employees), (s)he should be earning =1.47*10+(3.3-LOG(55000))
= 13.26 lakhs per annum. Don't know if this is a 'CTC' or 'AGP' figure...
If there were more data points and some more attributes then some more variables could be added to this equation to account for things like the employee's role, his managerial or individual contributor level, etc... to account for these variations. After all, someone with 10 years experience may be a vice-president or a an engineer or something in-between. The current equation does not handle these variations...

Then there are people and recruiters who love parading a magic formula like "years x 2.5" if you have less than "n" years, and "years x 2" if you have more than "n" years, and "years x 1.5" beyond a certain number of years.

As Amitabh Bachchan tells Om Prakash in Sharabi, "munshiji, ye duniya paise ki itni diwani kyon hai?"

8 comments:

Kay Yes said...

Any analysis of Pre-PGSEM / Post-PGSEM salaries? :)

Abhinav Agarwal said...

Sure - why not... it would be interesting in its own right...

Anonymous said...

Two Points..
1. Good effort
2. This can remain valid with tolerance of +/- 20% if u stick to software industry..jump to any other industry..e.g..10 years in Finance ..you got to be between 30-60..for sure..High time for change

Ujwal Tickoo said...

Great Analysis.
1) I have often heard the (No. of Years x 2) as a thumb rule from several consultants. I guess if you are +/- 20% in this Nx2 salary range you are well within the standard range based upon where and when you entered the job market.
2) From some more empirical data points I have, it seems your formula projects CTC.
3) Some salary skews might come depending upon when and from where you started in the job market. Example 2000-2001 was bad across the board. Again empirical data -- several companies tend to give a higher starting salary to IIT engineering graduates.
4) Would be interesting to do a separate projection for Engineering, Marketing, Sales, IT, and Biz Dev jobs in the IT industry.
Regards

hawkeye said...

something has to be wrong here. there are 5 year experienced people who earn 10 p.a...

Anonymous said...

The formula could also have taken the company's revenues and margins in to consideration.

saru said...

.....just want to get some ideas...what abt salary if some one is doing work on diff technology(i.e kernel devloper, device driver, and QA black box and white box) :-)

Richard said...

Hi,



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