The answer: A sales manager on the East Coast.
The budget? €70,000 annual salary.
Suddenly, after posting the job ad, comes the surprise:
Comparable positions in Boston – cost on average $140,000 base salary.
And that's just the beginning.
Over the past 10+ years, we've supported dozens of European tech companies with their US expansion. And the "salary shock" is almost always the first major reality check.
But here's the real problem:
Most guides about US salaries only give you part of the truth.
They talk about base salary. Maybe about "benefits." But they don't explain what that really means – and especially: what it really costs.
That's why I recently spoke with Christian Schlager. Christian heads the Austrian Desk at YER USA, a recruiting firm specializing in talent acquisition for EU companies in America. He's been helping Austrian and German companies build their first US teams for years.
His statement was crystal clear:
"Most European companies don't fail at finding candidates. They fail because they don't understand what a US employee actually costs – and what expectations come with it."
This article shows you exactly what you need to budget. With real numbers.
Let's start with the obvious: base salary.
US salaries vary massively depending on:
A concrete example from electrical engineering practice:
Position: Senior Sales Manager, Industrial Tech
| Location | Base Salary Range |
|---|---|
| Boston, MA | $120.000 - $150.000 |
| New York, NY | $130.000 - $160.000 |
| Dallas, TX | $100.000 - $130.000 |
| Remote | $110.000 - $140.000 |
In our podcast, Christian describes the main reasons:
1. Cost of Living
2. Market Situation
3. At-Will Employment
I often see that US salaries deter EU companies, but the truth is:
"Austrian companies see $120,000 and think: 'That's insane!' But for a Senior Sales Manager in Boston supporting a family, that's market standard. Not luxurious. Market standard."
This is where it gets interesting. And expensive.
In Europe, benefits are often "nice-to-haves." In the USA, they're deal-breakers.
What that specifically means:
What is it? Unlike Europe, there's no state health insurance in the USA. Employers must offer private health insurance – otherwise you're not competitive as an employer.
What does it cost?
A typical insurance includes:
Our tip:
Insurance plans also differ by deductible in the insurance policy. Offer at least an 80/20 plan – meaning the employer pays 80% of the premium, the employee 20%. Anything less becomes uninteresting in the talent market.
Christian says you should budget on average $1,000 - $2,000 per month per employee.
What is it? A 401k is the US equivalent of company pension. The employee contributes part of their salary (often 3-6%), and the employer "matches" this amount. This means this amount must be added to the base salary.
What does it cost? US standard is 3-6% matching.
For a salary of $130,000:
Why is this important? In the USA, there's no state pension like in Austria or Germany. The 401k is the only retirement provision for most Americans. The employee contributes part of their salary and the employer contributes the same amount up to a cap.
Fact in the US workplace:
If you don't offer a 401k, you lose 90% of your candidates. Period. It's not negotiable.
Cost for you: $5,000 - $8,000 per year per employee.
What is it? In the USA, a variable salary component (bonus or commission) is standard – especially in sales, but also in many other roles.
Typical structures:
| Position | Variable Pay |
|---|---|
| Sales Roles | 30-50% des Total Comp als Commission |
| Account Management | 10-20% Bonus |
| Engineering/Product | 10-15% Bonus |
| Executive Level | 20-40% Bonus |
For our Senior Sales Manager example ($130,000 base):
Important: These numbers are always mentioned in the hiring process. US candidates negotiate based on OTE, not base salary.
Cost for you: 10-30% of base salary additionally.
Christian Schlager says:
Capping good salespeople on variable pay is a mistake, because otherwise the salesperson will push important sales into the next year if they've already reached the maximum.
What is it? Especially tech startups and scale-ups offer equity (company shares) as part of compensation.
Is this mandatory? Not for established companies. But if you're positioned as an "innovative tech company," it's often expected.
What often helps when it comes to risk, especially for newly founded companies:
If you can't or won't give equity, you must compensate with a higher base salary. Or with a sign-on bonus.
Cost for you: Variable – but budget for 5-10% higher base salary if no equity.
What is it? Unlike Europe, there's no legally mandated vacation regulation in the USA.
What's standard?
Comparison:
🇦🇹 Austria: 25 days vacation + unlimited sick leave
🇺🇸 USA Standard: 15-20 days PTO (everything included)
Christian's reality check:
"Many Americans take their laptop on vacation too. Orient yourself to the market, not your EU standards."
Cost for you: Already calculated in salary – but plan with 20 days as minimum.
Other benefits that are often expected:
| Benefit | Kosten pro Jahr |
|---|---|
| Life Insurance | $500 - $1.000 |
| Disability Insurance | $800 - $1.500 |
| Professional Development Budget | $1.000 - $3.000 |
| Home Office Allowance | $500 - $1.500 |
| Phone / Internet Stipend | $600 - $1.200 |
Cost for you: $3,000 - $8,000 per year additionally.
Now let's put everything together.
| Cost Category | Amount (USD) |
|---|---|
| Base Salary | $130.000 |
| Commission/Bonus (30% OTE) | $39.000 |
| Health Insurance (Employer Share) | $10.000 |
| 401k Matching (5%) | $6.500 |
| Life & Disability Insurance | $1.500 |
| Professional Development | $2.000 |
| Home Office Allowance | $1.000 |
| Recruiting Costs (one-time) | $26.000 |
| Onboarding & Training (one-time) | $5.000 |
| Payroll Taxes & Admin | $12.000 |
| TOTAL YEAR 1 | $233.000 |
| TOTAL YEAR 2+ | $202.000 |
Converted:
Comparison to your original budget: €70,000
You would have been off by 3x.
There are a few more cost blocks that are often forgotten in talent acquisition:
| Method | Cost Point |
|---|---|
| Recruitment Agency | 20-25% of annual salary (one-time) |
| Internal Recruiter | $80.000-100.000 annual salary |
| Job Boards (LinkedIn, Indeed) | $500-2.000/month |
or our $130k Sales Manager:
Christian's perspective:
"Many European companies think: 'We'll post the job on LinkedIn and save the agency fee.' But then they're still sitting there three months later with zero qualified applicants. Time is money – especially for the first US hire."
In the USA, the following employer contributions are added:
Total: approx. 8-10% in addition to salary.
For $130k base: ~$12,000 per year
What many also overlook are all the labor law measures and HR software. One-time costs during setup:
| Item | Costs |
|---|---|
| Payroll Setup (Gusto, ADP, etc.) | $500-2.000 |
| HR Compliance & Policies | $2.000-5.000 |
| Employment Lawyer (Review) | $1.500-3.000 |
| Benefits Administration Platform | $100-300/onth |
One-time setup: $5,000-10,000
Christian gave me three areas where European companies can effectively reduce costs:
1. Remote First Approach
2. Adjust seniority level
3. Flexible Benefits
1. Health Insurance Christian is crystal clear here:
"Do NOT offer cheap insurance. You think you're saving $3,000 per year. But you lose your best employee who then goes to the competition. Wrong place to save."
2. 401k Matching Minimum 3%, ideal 5%. Below that, you're not competitive.
3. Recruiting "Cheap hiring" leads to:
Better: Invest once properly and proceed in line with the market.
Now you're probably thinking: "€200,000 for one employee?! That's insane!"
But here's what you get for it:
The US market is massive.
Let's say your technology has a Total Addressable Market (TAM) of:
A good US sales manager with $200k total comp should bring you:
ROI:
And that's calculated conservatively.
US customers often pay 20-40% more for the same products as European customers.
Why?
Daniel confirms:
"We regularly see Austrian tech products being sold for 30% more in the USA. And customers pay it – because the value proposition fits."
Unlike Europe, in the USA you can:
This reduces your risk enormously.
Christian summarized it like this:
"The biggest mistake isn't that European companies want to pay too little. The biggest mistake is that they have the wrong mindset."
What he means:
Many EU companies think:
The reality:
Top candidates in the USA have 3-5 other offers.
If your offer isn't competitive, you're out.
There's no "But we're a cool European company!" bonus.
Christian's advice:
"Pay the market rate. From day 1. Or don't bother. Everything else just wastes your time and burns your reputation in the market."
3 resources we use:
Important: These often show average values. For top candidates, you need to add 15-20%.
Partners like YER USA have live data on:
Cost: Usually free initial conversation and consultation
Talk to:
Insider tip from Christian:
"Post a test job ad without salary and see what salary expectations applicants have. You'll learn more in 2 weeks than from 10 salary reports."
If you're thinking: "Okay, that's a lot of information. What do I do next?"
Here's my recommendation:
Sit down with your CFO and calculate:
Find out what your specific role in your specific location costs.
Use:
Decide:
If GO:
Important: Plan 1-3 months from posting to hire.
Yes, US employees are expensive.
A Senior Sales Manager who would cost you €60,000 in Vienna costs $200,000 in the USA.
That's about 3x as much.
But here's the perspective:
The US market is 10-20x larger than your current market.
If you do it right:
At StateMinded we say:
"The question isn't whether you can afford US employees. The question is whether you can afford NOT to be present in the US market."
At StateMinded we can help with our "US Talent Bridge" program:
Next article in this series: "401k, Health Insurance & Co: US Benefits Explained for German Companies"
Additional Resources:
This article is based on an interview with Christian Schlager, Director Austrian Desk at YER USA. YER USA specializes in recruiting for Austrian and German companies in the USA.
Did you find this article helpful?
Share it with other European tech entrepreneurs thinking about US expansion.
And if you have questions: Write to me on LinkedIn or book a free 30-min assessment.
I look forward to hearing about your US plans.
Daniel