Compensation Data

Part
01
of five
Part
01

Compensation Data: Base Pay

To research your request, we looked up tech businesses that matched the $500 million to a $1 billion criteria then attempted to find compensation data for HR directors. However, after extensive research that looked at company websites, press releases, industry publications, and business-related social media profiles, we could not find any direct data about compensation for HR directors. Thus, we had to apply some elbow grease to determine the information. The range of base pay for HR directors in tech companies based in San Francisco is $130,000 to $317,000 per year while the average earned is $181,793.20. Below, I will describe how we arrived at this conclusion.

Methodology

First, we looked up a list of top tech companies based in San Francisco. Via a list from a market website, we found that the companies Uber, Airbnb, and Slack match your criteria. Other top tech companies based in San Francisco, such as Shyp, do not meet your revenue criterion and thus were not included. Shyp has a revenue of $3.5 million and another top company, Medium, has a revenue of $4.4 million.

Data that directly and outright states an HR director’s compensation was not available, as stated above. However, we made the best-fit effort to determine compensation. For Uber, we found that the average HR employee is paid $78,906 with a range of $50,000 to $130,000. Judging from this information, we can deduce that the higher end of the spectrum is a director's position or that directors are at least paid close to $130,000.

Airbnb does not have a position directly labeled HR director but they have a “director of employee experience” which is analogous to human resources. Airbnb has highly paid salaries that range from $194,000 to $317,000 per year. We can assume that the director position is near $317,000 per year.

For Slack, we found that directors are generally paid $190,000 per year. While this is not specific to HR directors, we can assume HR directors are paid about that much. With the above three companies, we have a range of $130,000 to $317,000, but that range is rather large, so to temper it we found average HR director pay for San Francisco companies from Salary ($138,748) and GlassDoor ($133,094). We averaged the three companies’ HR director salaries with the two averages we found plus the two averages from the sites.

($130,000 + $317,000 + $190,124 + $133,094 + $138,748) / 5 = $181,793.2 average

Conclusion

Directly finding information to fit your criteria was difficult as it did not exist in any of the resources we searched. However, using the information we had available, we were able to deduce the likely compensation for HR directors of tech companies in San Francisco. The averages we found were close to the general averages of HR directors in San Francisco listed by GlassDoor and Salary.

Part
02
of five
Part
02

Compensation Data: Target Incentive/Bonus Pay

After an extensive search through industry sources and research databases, we were unable to find pre-compiled compensation data for director level HR/recruiting type roles for technology companies in San Francisco Bay Area. Hence, we investigated the incentive-based bonuses of competitive tech company compensation using industry and household data. We limited our research to tech companies in the San Francisco Bay Area that generate between $500 million and $1 billion in revenue annually. Bonuses vary across the industry but correlate positively with revenue.

Based on the research criteria stated above, we were able to identify three technology companies in the San Francisco Bay Area with revenues between $500 million and $1 billion: Box ($506M), LinkedIn ($975M), and Twitter ($732M). On average, annual bonuses are around $24,200 or around 15.22% of total compensation amounts for tech jobs in the San Francisco Bay Area.

According to PayScale, recruiters in San Francisco earn a median salary of $70,240. The salary range between $48,758 and $101,173, an average commission of $10,174 and profit sharing compensation average of $2,250. Assuming director level HR/recruiting type roles for technology companies earn the maximum amount as stated by PayScale ($101,173) and we apply 15.22% as indicated above for tech jobs, we would have that the total compensation bonus is about $15,399 ($101,173 * 15.22%).

These annual bonuses can vary across corporation. Salesforce and Facebook offer some of the highest average annual bonuses in tech industry: $39,959 and $33,225 respectively. On the other end of the spectrum, we see Netflix and Spotify offering mean average annual bonuses of $0.

Corporations may allocate bonuses through employee payment structures that do not incentivize performance/targeted bonuses. For example, Twitter reportedly offers a mean annual bonus of $120, despite a differential in total and base compensation (the former including “commission, tips and bonuses”) summing to $17,000.

However, evidence suggests as tech companies achieve increasingly higher returns, we could expect the performance-based component of their wages to skew higher, not only in value but also in percentage. When LinkedIn brought in nearly $1 billion in revenues in April 2017, the targeted bonus component of compensation for the corporation rose from roughly $25,000 (17.2%) to $32,216.

Given the profitable revenue reporting from Twitter and Box, there is also a high likelihood we can expect to see high target incentive/bonus pay component of compensation for direct HR/recruiting type roles in technology companies, both in percentage and absolute value.

To summarize, we seek to provide a data-driven overview regarding compensation for senior recruiting managers in the Bay Area. In conclusion, average market salaries were $159k total, with a $24.2k annual bonus.
Part
03
of five
Part
03

Compensation Data: Percentage Total Equity

In the San Francisco Bay Area, the average equity compensation for a director in the HR/recruiting department is $24,537, or 0.018% of the company's total equity. This is slightly lower than the average for tech jobs in the SF Bay Area overall, which is $42,400 or 0.027-1.2% of total equity. These figures are based on an analysis of sample compensation packages from San Francisco tech companies. You'll find a full explanation of my methodology below.

Methodology and findings

Despite extensive searching through industry reports, media coverage, and other data, I could not find compensation data specific to HR positions at tech companies in the San Francisco Bay Area (although this report from Paysa provides excellent data for tech jobs in SF overall). Instead, I conducted my own analysis of a sample of companies. First, I selected companies based on your criteria: tech companies in the SF Bay Area with company revenues between $500 million and $1 billion. I found this pre-compiled list of tech companies in the area and selected several from the $500 million — $1 billion revenue range.

From there, I used Paysa data to find the typical equity compensation for HR directors at these companies. Paysa provides equity compensation data for a given company relative to the salary range of the employee (i.e. employees in X salary range typically make Y in equity compensation). Based on my colleague's assessment of the typical base salary of HR directors at these companies (part of this research project), and a brief review of the Paysa data, I determined that HR directors typically fall in the "average" pay range at these companies. For most of the companies, the average range was roughly $100,000 to $250,000 for base salary.

Based on this assumption, I looked at the typical equity compensation for employees in the average salary range at these companies. I've reported the data in column C of this spreadsheet, which I've used to organize all the data. Based on this data for my selection of nine companies, we can estimate that the average equity compensation at these companies is $24,537. That's an average of the values in column C, rows 2-10.

Since you asked for the percentage of total equity, I then determined this percentage by finding each company's total shareholders' equity in their financial information, and then comparing that to the average equity compensation. You can see each company's total equity in column D of the spreadsheet, and then the percentage of the total that the equity compensation represents in column E. For Dropbox, for example, you can see that the typical equity compensation at the company for an employee with an average salary is $62,816, and the company's total equity is $103 million. Therefore, the average equity compensation is 0.06% of the company's total equity (62,816 / 103,000,000 = 0.06). Based on the sample, we can estimate that the average percentage of total equity at these companies is 0.018%. This is the average of the values in column E, rows 2-10.

As you can see in row 12 of the spreadsheet, I've also included Paysa averages for all jobs at tech companies in the SF Bay Area (not specific to HR/recruiting) for comparison. The numbers I found in my analysis are slightly lower than this overall data, which I would argue makes sense, since the overall data from Paysa includes those employees that would likely receive a higher percentage of company equity, such as founders, executives, and developers.

Conclusion

To summarize, the average equity compensation for a director in the HR/recruiting department at an SF Bay Area tech company is $24,537, or 0.018% of the company's total equity. You'll find all the data in the attached spreadsheet.
Part
04
of five
Part
04

Compensation Data: Total Target Pay

In the San Francisco Bay Area, the average total pay for an HR/recruiting director at a tech company is an estimated $128,728. This is based on the average base salary and the average annual bonus at a selection of tech companies in the area with revenues between $500 million and $1 billion. You'll find a full explanation of my methodology below.

methodology and findings

To determine the total annual pay for HR directors at companies matching your criteria, I referred to the following other responses by my colleagues in this project:

Base Pay

Unfortunately, upon review of these responses, I noticed a methodological error. In both cases, the analyst failed to focus exclusively on companies with revenues between $500 million and $1 billion. So, I started over fresh with a new selection of companies that do fit this criteria, the same set used in the "Percentage Total Equity" request, for consistency.

To find the average base salary for the target companies, I used data from Paysa on each company. While Paysa doesn't specify the salaries for HR/recruiting directors specifically, it does give an average salary for directors in management departments. This is the number I've provided for each company in column C on the "Base Pay" tab of the attached spreadsheet.

To address bonus/incentive pay, I again used company-specific data from Paysa. On this platform, bonus pay is estimated in relation to the employee's salary range (i.e. employees in X salary range typically earn Y in annual bonus pay). For all of the companies, the base pay identified in the previous section put the target employees in the "average" salary range. Therefore, I've included the data for bonus pay for employees in this salary range; you'll find this data in column C on the "Bonus/incentive" tab of the spreadsheet.

As you can see in the spreadsheet, the average base salary for all nine companies is $113,000, and the average bonus pay is $14,592. To find the total pay average, I combined the base salary and bonus pay for each company, which you can see in column D of the "Total target pay" tab of the spreadsheet. Then, I found an average for all nine companies, which is $128,728.

conclusion

To wrap up, the average total pay for an HR/recruiting director at a tech company in the San Francisco Bay Area is an estimated $128,728. You'll find all of the data in the attached spreadsheet.
Part
05
of five
Part
05

Compensation Data: Total Targeted Compensation

In the San Francisco Bay Area, the average total compensation for an HR/recruiting director at a tech company is an estimated $153,266. This is based on the average base salary, the average annual bonus, and the average equity compensation at a selection of tech companies in the area with revenues between $500 million and $1 billion. You'll find a full explanation of my methodology below.

Methodology and findings

The data and findings in this request are based on the four other requests in this project:

Base Pay

However, as I discussed in "Total Target Pay", there were methodological errors in the "Base Pay" and "Bonus/Incentives" responses. These have been corrected in the "Total Target Pay" response, and the attached spreadsheet contains all the correct data.

To find the total targeted compensation for each company, I added together their base pay, bonus/incentive pay, and equity compensation. You can see all of this in the "Total compensation" tab of the spreadsheet. Then, I found the average from the sample of the nine companies to determine that the average total compensation is $153,266.

As you can see in row 12 of the "Total compensation" tab of the spreadsheet, I've also included Paysa averages for all jobs at tech companies in the SF Bay Area (not specific to HR/recruiting) for comparison. The numbers I found in my analysis are slightly lower than this overall data, which I would argue makes sense, since the overall data from Paysa includes those employees that would likely receive a higher compensation package, such as founders, executives, and developers.

In addition to the data generated in the other responses, I performed a scan of industry reports, media coverage, databases, company information, and other sources to see if there are any other forms of compensation that should be taken into consideration. It seems, however, that the three types of compensation discussed in this project are the industry standard. It's worth noting that sign-on bonuses are also common practice; these are one-time compensation elements, however, not annual, so I did not add them to the data in the spreadsheet. You can see some example sign-on bonuses here, and note that the Paysa average for sign-on bonuses among tech companies is $15,900.

Conclusion

To wrap up, the average total compensation for an HR/recruiting director at a tech company in the San Francisco Bay Area is an estimated $153,266. You can find all the relevant data in the spreadsheet.
Sources
Sources