skip to content

How do you judge whether public compensation data is usable for the level you are interviewing at?

level: seniorimportance: nice to knowfreq 27%

answer

  1. Audit the sample before trusting the band
  2. Count what survives level-tagging
  3. Spread tells you more than a median
  4. Triangulate kinds of source, not more of one
  5. Thin sample means a range, not a point

basics

~20 s

Audit the sample before trusting the band: how many entries are tagged to a level, whether they share a location tier and company stage, what each total includes, and how recent they are. Untagged self-selected entries describe nothing.

solid answer

~50 s

Public compensation aggregators are crowdsourced, so their entries are voluntary, self-reported and skewed toward people who felt good about their number. That is usable data if you audit it. For each source, check how many entries are tagged to an actual level rather than a title, whether they share a location tier and a company stage, what the reported total includes, and whether the sample is dominated by one employer. Prefer a percentile spread over a single median, because the spread tells you how much disagreement the sample contains. Then triangulate: a band stated by a compensation partner is real information with a known direction of bias, and peers in the same market are a third source. When the level-tagged sample is genuinely thin, widen the geography deliberately and record a range rather than pretending to a point estimate.

go deeper

for a junior

Know that crowdsourced pay data is self-reported and unverified, so a number you read there is a data point rather than a fact, and it needs a level and a location attached to mean anything.

for a middle

Be ready to describe the audit itself: level-tagging, tier and stage matching, what each total includes, recency, and whether one employer dominates the sample.

for a senior

Show judgment when sources conflict or the sample is thin — deciding whether a discrepancy is a mapping error or a real market difference, widening deliberately, and recording a range instead of inventing a point estimate.

for a principal

Own the standard of evidence you will act on: how much uncertainty is acceptable before you set a position, what you would need to see to change it, and the cost of over-confident benchmarking to the people you advise.

## Why the data needs auditing at all Public compensation aggregators and crowdsourced pay databases are genuinely useful, and they are also the least controlled data you will use for anything important. Entries are submitted voluntarily by individuals, with no verification, in whatever structure the site asks for. The result is a dataset with three predictable biases: - **Self-selection.** People are more likely to submit a number they are pleased with, so the upper part of a sample is usually better represented than the lower part. - **Level ambiguity.** Many entries carry a title the submitter typed rather than a rung the employer administers, which reintroduces the whole title-versus-level problem at the data layer. - **Composition drift.** One entry reports cash only, the next reports a whole package, and the site displays them in the same column. None of that makes the sources unusable. It makes them a sample you audit before you draw a band from it. ## The audit, as a short checklist Run these questions over every source before any figure from it lands on the benchmark sheet: 1. **How many entries survive level-tagging?** An aggregate over hundreds of untagged entries is worth less than a dozen entries you can tie to a described rung. If you started with 23 entries for a senior-level security engineering role and only 9 carry a level you can map, your real sample is 9. 2. **Do they share a location tier?** Entries from different tiers widen the band for a reason that has nothing to do with the rung. 3. **Do they share a company stage?** A pooled sample spanning early-stage and large employers mixes packages of different composition. 4. **What does each total include?** Cash, cash plus variable pay, or a whole package including an equity component. 5. **How recent are the entries?** Bands move. Old entries describe a band that may no longer exist, and the sites rarely make staleness prominent. 6. **Is one employer dominating?** A sample where most entries come from a single company is that company's band, not the market's. 7. **Which direction does the bias run?** Self-reported samples usually skew upward; an employer-stated band usually skews toward the part of the range the employer would prefer to pay. ## Percentiles beat a median A single median invites you to treat one number as the answer. A percentile spread shows how much the sample disagrees with itself, and disagreement is information: a tight spread across level-tagged entries in one tier is a strong band, and a spread so wide that the upper end is nearly double the lower end usually means the sample is still pooling rungs, tiers or stages. Since your target and walk-away are expressed as percentile positions, the spread is also the thing you are actually using. ## Triangulate across kinds of source Use more than one kind of source rather than more of one kind: - **Crowdsourced aggregators** give volume and percentiles with self-selection bias. - **A band stated by a compensation partner** is authoritative about that employer's own range for that rung, with a known direction of interest. - **Peers at your level in your market** give small, high-quality samples with detail no site captures — but be careful with a single friend's number, which is one point, not a band. - **Published ladder descriptions** do not carry pay, but they let you map rungs, which is what makes every other source usable. When two kinds of source disagree sharply, the usual cause is a level mapping error rather than a market anomaly. Re-check the rung before you re-check the market. ## When the sample is genuinely thin Niche roles in smaller markets often yield too few level-tagged entries to support percentiles at all. Three honest responses, in order: 1. **Widen deliberately and record it.** Add an adjacent tier or an adjacent stage, and write on the sheet that you did, so the resulting band carries its own caveat. 2. **Move from a point to a range.** Set the target as a region of the band rather than a percentile point, and keep the floor conservative because your evidence is weaker. 3. **Say what you do not know.** A thin sample honestly labelled is stronger than a confident number nobody can defend — including to yourself, three weeks later, when you have forgotten where it came from. What you must not do is fill the gap by reverting to a title-keyed aggregate. That produces the illusion of precision from exactly the data problem the audit exists to catch.

  • Your level-tagged sample and a band stated by a compensation partner disagree sharply. What now?
    Re-check the level mapping first, because a whole-band discrepancy is more often a rung error than a market anomaly. If the mapping holds, treat both as real: their band is authoritative for that employer's rung and skews toward what they prefer to pay, while a self-reported sample skews upward. Record both on the sheet rather than discarding one.
  • How many entries do you need before a percentile band means anything?
    There is no threshold worth quoting, and any number I gave you would be invented. What matters is how many survive level-tagging, tier-matching and stage-matching, and how tightly they cluster. Nine well-tagged entries that agree beat a hundred untagged ones; if the spread stays very wide after filtering, the sample is still pooling something.

saying these in an interview costs you the question

  • Reading one median off an aggregator and calling it a band
  • Pooling entries that were never tagged to a level
  • Trusting a self-selected sample without noting its upward skew
  • Treating an employer-stated band as neutral market data
  • Quoting a precise number from a sample of a few entries

context