While some know it, others don’t! Paywatch has been around for one year now. In this one year, Team Paywatch has been continuously studying salary data and bringing interesting insights to you. Till date, we have covered salaries of 15 different technologies in Pune and pan India for eight experience brackets in the form of different beautiful graphs. These graphs can help IT companies, recruiters and IT candidates in crucial salary decisions, career growth and salary negotiations. So, it is important for us to explain how you can read these graphs and what kind of salary decisions can be made based on these readings. Let’s see how you can actually read these graphs.
Reading Paywatch Salary Distribution Graph for <Technology> (<Years of experience>) in <Location>
Here are the 5 things that you can read from Paywatch Salary Distribution Graphs for each technologies, experience ranges and locations.
1) Data Sample for Salary Distribution Graphs
Behind each of the salary graphs, there is data (source : Job portal). This data consists of the current salaries (CTC in lakhs per annum INR) that IT candidates/developers are currently earning. That means these salaries are being bagged home by the IT candidates currently and not what they should be offered on changing jobs. Our sample size is large enough to give us a bell-shaped distribution.
2) Bucketing for the Years of Experience
Each of the 15 technologies on Paywatch has 8 different sub-pages based on experience brackets.
The salaries offered in IT industry change, not just according to technologies, but also experience ranges. Our research says that there is not much difference in salary in a bracket of two years. Hence, we have done bucketing of two years i.e. 0 to 2 years, 2 to 4 years…and so on.
3) Plotting the Salary Distribution Graphs
X-axis represents salaries in Lakhs/annum (L/a) INR and Y-axis represents percentage population of the IT candidates with the given years of experience in the given location. Red bar indicates the percent population of the IT candidates that are earning the given current salary. For example, 2nd red bar in this graph shows that 9 % of Java J2EE developers in the job market of Pune are earning between 6 to 8 L/a INR currently. Salary bars start here from 4 L/a INR because there was no Java J2EE developers earning less than this salary. Salary bucketing of 2 lakhs is done here smoothen the graph and attain a bell-shaped curve without showing too many red bars.
4) Amount of Standard Deviation in the Salary Distribution Graphs
The Standard Deviation (SD) is the measure of how spread out the salaries are. The positive and negative deviation of salary from the average salary (mean) gives the average salary range (SD – Mean to SD + Mean). This means that the maximum number of IT candidates are getting salaries between the average salary range. Any salary below this range is considered low salary and any salary above this range is considered high salary. Generally, low salary is linked with low performing candidate but in some cases, low salary can be a result of working for a low paying company or a less funded startup despite being a good performer. Similarly, high salary is linked with high performing candidate but it can also be a result of working for high paying company despite being an average performer.
Less standard deviation means that the salaries of the maximum number of IT candidates are spread out in a smaller salary range. This can be attributed to less demand for such IT candidates in the job market or more supply of such IT candidates in the job market. Similarly, more standard deviation means that the salaries of the maximum number of IT candidates are spread out in a larger salary range. This can be attributed to more demand for such IT candidates in the job market or less supply of such IT candidates in the job market or increase in the number urgent requirements that makes way for IT candidates to have an upper hand in salary negotiations.
5) Shape of the Salary Distribution Curves
Like most of the graphs in economics, salaries of IT candidates also follows a bell-shaped curve, also known as normal distribution curve. A perfect bell-shaped curve means perfect balance between demand and supply of IT candidates.
Left-skewed curve is shown when the left-tail of the salary curve is dragged towards left. This left-skewed salary distribution means that there is less demand for such technology skills for the specified experience level. Because of such imbalance in the job market, some candidates accept very low paying jobs also.
Similarly, right-skewed curve is shown when the right-tail of the salary curve is dragged further right. This right-skewed salary distribution means that there is more demand for such technology skills for the specified experience level. Due to this imbalance in the job market, good IT candidates are able to bag salaries higher than the market in salary negotiations.
We hope that this article will help you read the Salary Distribution graph from Paywatch Salary Reports well and understand the salary trends for IT professionals. Next article will further describe other graphs from Paywatch Salary Reports. To keep up with Paywatch, please subscribe Rezoomex Newsletter.
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