Junior, mid-level, and senior engineers will command different rates as well as specialists from various locations. Together with the Team Lead (if you have any), outline the responsibilities and expectations for each role. Look at job boards, salary surveys, and industry reports to understand the average hourly rates for software engineers with similar skill sets and experience. To accommodate negotiations, set your initial rates slightly above what you're prepared to offer, but still within the range of industry standards. Stay compliant with minimum wage laws, overtime regulations, and any relevant standards. When communicating hourly rates to potential candidates, be transparent about how you arrived at the figures. This helps build trust and demonstrates that you've done your research. Adjust hourly rates based on performance reviews and contributions to the team. This encourages software engineers to excel and grow within the organization.