January 21, 2025

What does a Product Engineer do and what is their salary?

John Kim

Co-founder @ Paraform

In this blog

What do Product Engineers actually do?What skills and qualifications do Product Engineers have?What’s the average salary for a Product Engineer?How location impacts Product Engineer salariesHow company stage influences compensationEquity vs. salary: striking the right balanceTips for startups hiring a product engineer

So, you're building a startup. You've got the vision, the market research, and maybe even a killer MVP.

Your next step is hiring a Product Engineer, a key player in your team who can handle everything from designing and testing to fine-tuning products, working closely with different teams, and tackling any hiccups that pop up during production.

Let's get down to the specifics–what exactly do Product Engineers do and what kind of compensation do they typically command?

What do Product Engineers actually do?

Startups often bring to mind visionary founders, scrappy teams, and fast-paced innovation. But there’s one role that often flies under the radar: the Founding Product Engineer. They're not just engineers; they're product visionaries, tech architects, and pretty much the glue that keeps the early team together.

Here’s what they do in a nutshell:

Shape the product

Forget just coding features. Founding Product Engineers are deeply involved in defining the product itself. They're the ones asking the tough questions: "What problem are we really solving?" and "How can we build something users will actually love?"

Build the foundation

Think of them as laying the groundwork for the entire tech stack. They're choosing the programming languages, frameworks, and tools that will power the company for years to come. A big responsibility, right?

Wear many hats

In the early days, it's all hands on deck. They might be coding one minute, debugging the next, and then hopping on a call with the product users. They're adaptable and ready to tackle whatever comes their way.

Here’s a glimpse into their whirlwind of responsibilities:

• Coding: Writing and shipping features that directly impact the user experience.
• Debugging: Solving tricky production issues to make sure there are no bugs and everything is running smoothly from a technical point of view.
• Product collaboration: Teaming up with designers, marketer,s and software developers to make sure everyone is on the same page about what users want and what features everyone should build first.
• Investor relations: Explain the tech strategy to investors and show them how it's going to make the company a success.

Champions the user

Founding Product Engineers aren’t just thinking about how the product works; they’re laser-focused on how it feels for the end user. They obsess over the user experience, constantly asking:- “Is this intuitive?”

-“Does this solve the user’s problem effectively?”

- “How can we make this simpler, faster, and more delightful?”

This user-first mindset is what sets great Product Engineers apart. They know that building something functional isn’t enough—it has to be something users love to use.

What skills and qualifications do Product Engineers have?

At the core of every Founding Product Engineer is a strong technical skill set. Here’s what it takes to build and scale a product in the early days of a startup:

1. Proficiency in programming languages

They’ll need expertise in a range of programming languages to handle everything from backend logic to front-end interfaces. Startups often favor languages and frameworks that enable rapid development, such as:

• Backend: Python, Node.js, Ruby on Rails.
• Frontend: React, Vue.js, or Angular for building user interfaces.
• Mobile Development: Swift or Kotlin for native apps, or Flutter for cross-platform solutions.

2. Familiarity with Agile development

Startups move fast. Familiarity with Agile methodologies like Scrum or Kanban ensures you can iterate quickly, adapt to feedback, and deliver results without unnecessary delays.

3. Tech stack design and implementation

Founding engineers will be responsible for choosing the tech stack that powers the company. This includes selecting the right:

• Database: MySQL, PostgreSQL, or NoSQL options like MongoDB.
• Infrastructure: Cloud services like AWS, Google Cloud, or Azure.
• DevOps Tools: Containerization tools like Docker and orchestration platforms like Kubernetes.

4. Prototyping skills

The ability to quickly build MVPs is crucial. Tools like Figma for design or low-code platforms for prototypes can help you test ideas fast.

While a degree in engineering, computer science, or a related field can provide a solid foundation, it’s not a hard requirement to succeed as a Product Engineer. In fact, many standout engineers have achieved success through hands-on experience, self-learning, and a passion for building.

What really matters is their ability to solve problems, create value, and contribute to a team.

What’s the average salary for a Product Engineer?

The salary for a Product Engineer can vary significantly based on location, company size, and the engineer’s level of experience. Here’s a look at the general benchmarks:

Nationwide Averages in the U.S.

• Average annual salary: $117,541
• Typical range: $107,125 to $130,294

These averages give you a general idea, but hiring a Product Engineer is a key decision in your startup journey so be prepared to be flexible and consider other things when making an offer.

How location impacts Product Engineer salaries

Geography plays a major role in determining salaries due to the cost of living and regional demand for tech talent. Here’s how salaries vary across major cities in the U.S.:

• San Francisco, CA:
  • Average Salary: $139,551
  • Total compensation, including bonuses, can climb up to $212,693 annually in this competitive market.
• New York, NY:
  • Average Salary: $136,584
  • Product Engineers in NYC earn some of the highest salaries due to the city’s growing tech scene and high cost of living.
• Austin, TX:
  • Average Salary: $115,073
  • Known for its burgeoning tech industry, Austin offers competitive salaries without the sky-high living costs of the coasts.
• Remote work:

Salaries for remote Product Engineers vary widely. While some startups may offer lower compensation for engineers in lower-cost areas, others maintain competitive pay to attract top talent globally.

How company stage influences compensation

The stage of a startup significantly impacts how much you can expect to pay a Product Engineer. Let’s break it down:

Seed-stage startups

• Salary: $85,000 - $120,000
• Equity: 0.5% - 1.0%At this stage, startups may offer lower salaries to preserve cash flow but sweeten the deal with meaningful equity. Engineers who join during this phase have the opportunity to make a big impact and potentially earn significant returns as the company grows.

Series A and B startups

• Salary: $100,000 - $150,000
• Equity: 0.2% - 0.5%With additional funding secured, startups typically offer higher salaries to attract mid-level or senior engineers. Equity allocations tend to decrease compared to the seed stage, but they still provide long-term incentives.

Series C and beyond

• Salary: $130,000 - $185,000
• Equity: 0.05% - 0.2%At this stage, companies are more established, and salaries are competitive with those offered by larger tech companies. Equity allocations are smaller, but the reduced risk and increased salary appeal to most experienced engineers.

Equity vs. salary: striking the right balance

For startups, compensation isn’t just about salary—it’s also about equity. Offering equity allows startups to attract talent by offering a stake in the company’s future success.

• Early-stage startups: Tend to offer higher equity percentages in exchange for lower base salaries.
• Growth-stage startups: Offer a more balanced compensation package with competitive salaries and moderate equity.
• Mature startups: Focus on salary and bonuses, with equity playing a smaller role.

Tips for startups hiring a product engineer

1. Know your market: Research local and remote salary benchmarks to make sure your offers are competitive.
2. Leverage equity wisely: Equity can be a powerful tool to attract top talent without overextending your budget.
3. Highlight the role’s impact: Emphasize the engineer’s influence on the product and company growth to attract candidates who value meaningful work.
4. Offer flexibility: These days, nearly 30% of workers in the United States want a job where they can work remotely. Remote work options and flexible schedules can make your offer more attractive, especially for candidates seeking work-life balance.

Finding the perfect Product Engineer for a startup can feel like searching for a needle in a haystack. You need someone with the skills, the drive, and the vision to thrive in the fast-paced startup world.

That's where Paraform comes in–a recruitment marketplace connecting startups with top-tier recruiters.

We recently helped Eight Sleep, the sleep tech leaders, hire a founding Product Engineer. They came to us and we not only found them the perfect candidate, but we also helped them fill the role way faster than they expected.

Try Paraform if you want an unfair advantage in recruiting for your startup.