Set a hiring budget by comparing roles with similar work, level, location, and compensation definitions. Use current, traceable sources and keep the company's budget decision separate from a claim about the entire market.
An internal job database can help organize evidence. Its size alone does not make it a representative compensation survey.
Define the role before collecting figures
Write the responsibilities, decision scope, management expectations, working location, and essential expertise. A title such as “founding engineer” can cover materially different jobs.
If the mandate changes while you collect examples, reassess which comparisons still apply.
Create a comparability worksheet
| Field | What to record |
|---|---|
| Source | Public posting or authorized compensation source |
| Date | When the information was published or checked |
| Role scope | Responsibilities and level |
| Location | Applicable geography and work arrangement |
| Pay definition | Base, target cash, OTE, contract rate, or another measure |
| Other components | Equity and benefits, kept separate |
| Limitations | Missing details or reasons the example may not match |
Do not average unlike measures into one salary figure.
Separate evidence quality from quantity
Remove duplicates and stale records. Check whether the source describes an advertised range, a reported offer, or actual compensation. Those are different kinds of evidence.
Illustrative comparison: A fictional team finds one engineering posting with a base-salary range and another sales posting with OTE. Combining them would not produce a useful engineering salary benchmark, even if both have similar numbers.
A smaller set of well-matched examples can support a clearer discussion than a large collection of mixed records.
Make the budget decision explicit
Bring the comparison, business requirements, available budget, and internal compensation approach to the person who approves the role.
If the desired scope exceeds the approved budget, choose among changing scope, changing the budget, or delaying the search. Do not ask recruiters to resolve an internal tradeoff by presenting an unrealistic package.
Explain which parts of the package are approved and which can vary.
Keep public claims narrow
If publishing a salary guide, disclose the source, date, selection method, sample limitations, and pay definition. Do not publish private individual compensation or identifiable small-group information.
Refery's salary data methodology explains the limitations of its public posting sample. Use those guides as transparent examples of advertised ranges, not a claim about accepted offers or every startup.
For candidate communication, use cash and equity explained separately.