When setting salary for your software company or computer programming department, it's important to have access to computers and software industry salary tools. Knowing what to offer job candidates or how to reward hard work from current employees can be tricky, but there are plenty of resources you can use.

One of those tools—a software industry salary survey—should clue you in about the going rates for computer programmers and other related fields. You'll want to set up parameters so that you offer a competitive yet fair wage to both current and prospective employees.

Recent salary statistics indicate median annual earnings of $79,780 for software engineers. But as a hiring executive you know that many factors go into wage compensation policies and decisions, including:

1. A computer programming salary range will depend upon the applicant's education. Most will need to have at least a bachelor's degree and then continued education to update their knowledge of the latest technical information.

2. Salaries in the computer industry depend largely on pertinent on-the-job experience.

3. Salaries in the software industry vary by job function as well, with software publishers earning at the highest levels.

Action Steps
The best contacts and resources to help you get it done

Research software industry salaries

Many companies calculate salaries through business surveys. Find a software industry salary survey online. Basic information is usually free, while more detailed findings may registration and fees.

I recommend: Find compensation and benefit information in the interactive/new media category at Vault.com. Mercer also offers salary survey information for the information technology (IT) sector.

Work with a consulting firm to set software industry salary guidelines

If you need to re-vamp your existing compensation policies or start from scratch, you may want to hire a salary consultant or a firm with expertise in that area.

I recommend: Pearl Meyer & Partners provide independent and comprehensive advice in the areas of reward and compensation policy. Review the basic consulting services provided by Villareal & Associates.

Use software to calculate computer industry salaries

Software programmers designed it-now you can utilize your own industry's handiwork. A number of software options exist when it comes to calculating and implementing compensation policies. Make sure to test out all of the features to make sure the software or application will meet your individual company's needs.

I recommend: Learn more about the pay structure generator application offered by Fox Lawson & Associates and then contact them regarding payment options. Sign up to receive more information from CompensationMaster, which offers consulting and software services.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Starting software industry salaries with bachelor's degrees ranged from $53,000 to $99,000, depending on the field of study. Those who studied computer engineering averaged $56,000 while those with a computer science degree earned $53,000. Those starting as software engineers earned from $66,000 to $99,000 and network engineers, $65,000 to $90,000.