Shortlist salary benchmarking: What engineers can earn

From the newsletter

Salary benchmarking data in engineering, product, HR and operations leadership positions show stark salary disparities across African countries. Top engineering leaders earn at least  $59,500 to $91,000 annually, with South Africa paying the most, followed by Kenya, Nigeria and then Egypt. The data is provided by Shortlist, a leading recruitment agency in Africa.

• South Africa’s premium rates for the top engineering role in a company is 30% higher than Kenya’s and 53% higher than Egypt’s. Despite South Africa and Egypt having an almost similar hydrogen market growth, economic conditions differentiate salary scales.

• With hydrogen still emerging as a separate sector, the analysis benchmarks leaders more broadly among renewables executives.

More details

• Rather than a minimum and maximum, this data set is based on a threshold rate below which good candidates are hard to find and a retention benchmark that in most cases ensures long tenure in a role.

• South African salaries in comparable roles are approximately 30% greater than those in Kenya. Conversely, Nigerian salaries are roughly 10% lower than Kenyan salaries, and Egyptian salaries are about 15% lower. This points to the different living standards which vary across the regions.

• The data shows South Africa leads with premium salaries overall, reaching up to $227,500, while Egypt and Nigeria trail significantly. Regarding minimum annual pay, South Africa pays senior engineers $91,000 compared to Kenya ($70,000), Nigeria ($63,000), and Egypt ($59,500). The pay scales for product leaders and engineers are similar across the countries.

• The minimum annual pay for human resource leaders is similar to that of product and engineering leaders. However, retaining them attracts higher pay rates than the other two, with those in Kenya needing $120,000, South Africa attracting the highest pay at $156,000, Nigeria at $108,000, and Egypt at $102,000.

• Product leaders, on the other hand, have the lowest retention benchmarks across the leadership roles. In Kenya, they start from $80,000, South Africa $104,000, Nigeria $72,000 and Egypt ranks lowest at $68,000. Operations leaders’ threshold rates are comparable to other leadership roles, but their premium rates are generally lower than HR Leaders, despite their strategic importance.

• It's important to consider that differing living standards across countries mean higher salaries don't automatically equate to better financial well-being. Numerous other factors can influence the actual value of compensation. For example, the cost of living in South Africa is considerably higher compared to Egypt. Furthermore, fluctuations in currency exchange rates can also significantly affect the real value of earnings.

Our take

• The presence of extremely high premiums for certain roles suggests organisations are willing to pay a premium to attract or retain top talent in engineering and product positions. Meanwhile, roles like HR and Ops might have more standardised or capped ranges.

• Organisations are willing to pay top dollar for roles that directly influence scalability, innovation and competitive advantage. These roles are not just rewarded for tenure but for impact, as evidenced by the high premium salaries for engineers and operations leaders.

• The retention benchmark for HR leaders is higher than that of product and engineering roles, even though their premium salary cap is lower. This suggests that mid-level HR leadership is critical to keeping the organisation stable, especially during rapid scaling. It’s a subtle shift, but it indicates growing respect (and reliance) on people's leadership as a strategic lever, not just a support function.