Well in this specific case LinkedIn makes it so you have to report your salary to see other salary data, so that right there is one place where people have an incentive to add junk just to get the data.
But the more important problem is the selection bias.
There are massive incentives to lie about how much you make. It's not hard to imagine this tool will be used by HR compensation experts to determine wage parity. With that in mind, the higher the average, the better positioned you will be to negotiate a higher salary, therefore everyone who reports how much they make is ultimately incentivized to state more than they make in hopes of driving up the wage index for their field.
It would be neat if the IRS / CRA / national tax body would publish summaries based on people's actual tax returns. Although you don't specify things like industry, and other career specific quirks on your tax returns. (i.e. Ruby on Rails developer vs Dynamics CRM developer)
What's an outlier? I bet a lot of people feel they're shortchanged by about $10k, and will report that much higher to set a baseline. Outlier sounds more like "AngularJS developer making $250,000 in Cleveland"
it means more accurate baseline calculation as well as median salary which will rule out things like "AngularJS developer making $250,000 in Cleveland"
This is the first salary listing I've seen that actually looks somewhat accurate (at least for some titles) I am confused why you guys aren't using the title standardization. You're surfacing and getting different results for "Senior Software Development Engineer" and "Senior Software Engineer" (whatever those mean). You should talk to someone in SNA about this. I think Qi is the guy now.
Also you're having sampling bias that's effecting levels. There's no way the median salary for a staff engineer is higher than a senior staff's. Again talk to Qi.
Why didn't you buy industry standard employer wage reported surveys like any employer of size does? They are readily available and the cost would be a drop in a bucket for LNKD.
Well, if everybody else thinks that programmers make $200K/year, there's a chance that somebody might consider paying $200K/year. That seems like an incentive to me.
Nope. Lots of places can't pay that money. They'll still try to interview and hire people but they can't compete.
There is a very wide range of salary, skill and experience in tech. A single figure is not of much use. If anything it might be ruined by the vast majority of cheap companies (i.e. outside of Google/Apple/Facebook/... )
Outside of lying, I've not seen an implementation of this that fully accounts for compensation outside of base salary (bonus, options, 401k matching, benefits, etc). I suspect some are entering only base, some base+bonus, or similar.
Not necessarily lie. People, that earn less, are likely to be ashamed (even anonymously) of their salary, while big earners are prone to boast on every occasion.
How do you know that the data on Glassdoor is too low? What is your source of truth? Anecdote? Glassdoor currently reports the average base salary for the job title "Senior Software Engineer" in SF Bay Area to be ~$130K which sounds about right to me, again, with nothing but anecdotal truth reference.
If you go by what people say on HN, then of course everyone in software makes $300K a year and has millions in stock options (and gets 5 job offers in their inbox a week).
I know how much I am paid, how much some of my coworkers are paid, how much my company pays new grads, and what the average salary on Glassdoor is for my company. The average is lower than what new grads got in 2016.
On top of the incorrect base salary, the information on bonuses/equity is extremely limited. The average that is listed is also incorrect.
Assuming you wanted to work for LinkedIn and Microsoft I'd definitely encourage you to lie about your current salary just in case they were so inclined to look it up and leverage it against you.
But the more important problem is the selection bias.