How to 1.5x your salary through negotiation
careercutler.substack.com
careercutler.substack.com
I did that, and got my 1.5x offer. My employer dutifully offered to match it, but by that point I liked the idea of the new job better anyway. They panicked and made further offers and desperate manoeuvres to keep me, but it was too late.
I am certain they still have that policy in place.
I've seen colleagues stay for years with golden handcuffs and it has never paid off. It leaves them with psychological misery and have made it much harder for them to get the next job.
But I will see if the pay/bullshit ratio is high enough to be worthwhile after my four year anniversary next year and all of my initial stock vest is completed.
But at 49 years old, my shit tolerance level is very low.
https://news.ycombinator.com/item?id=36306966
Anything that takes away from my lifestyle is a non starter.
I swear HR have access to a website with playbooks with whole exercises like this
And when you point out a couple of offers with higher pay, they say “there will always be companies that pay more on the higher end, your pay is consistent with the average or slightly above average” and then we set OKRs to try and figure out why we haven’t hired any experienced people in 3+ years
When I was interviewing post-graduation in Uk and Germany I consistently got offers between 27 and 50k Euros/Quid. That imho, was too low compared to what companies in US were willing to pay me.
We don’t.
I actually went back to the first company a year later but negotiated properly and got a good bump from even that. Realizing that jobs outside the Bay pay people with my skills that well was a game changer.
Edit: I should clarify this was a W2 contract position. I was an employee of a contracting company that "loaned" me to the client.
The point the commenter is making is that they asked for $120,000/year, but the recruiter thought that was too much hearing "120" as a per-hour rate, so countered with $90/hour. Hilarity ensues. The OP got more than they were asking for because of the ambiguity.
I sometimes joke that, when contracting, I spend 80% of my time billing work for client projects and the other 80% (unpaid) getting new projects, leaving me only 80% (unpaid) of my time to spend managing relationships with clients and collaborators, doing taxes, and maintaining the existing business.
Also consider your retirement savings and what you're missing out on from employer 401k matches.
Finally, keep an eye on cost of living and adjust your rate accordingly. The dollar is worth at least 20% less than it was 3 years ago. Charge 20% more.
- 80 hours federal holidays
- 160 hours PTO
- 240 hours (6 weeks) to find another job or contract.
But this was also considering both a w2 contract job working through an agency and my wife worked part time in the school system for benefits. If it was a 1099 contract, I would have to consider self employment tax.
I had a great network of recruiters between 2012-2018 when I was going back and forth between contract and permanent positions and the local development market was hot for your standard enterprise DEVs with experience.
e.g. $31/hr ≈ $62k/yr
To turn things the other way, take the annual wage in thousands (e.g. $80k), divide it by 2 (e.g. $40k) and chop off the thousands (e.g. $40).
e.g. $72k/yr ≈ $36/hr
So in the story, OP was making ~$52.50/hr and wanted to make ~$60/hr, but the recruiter thought they wanted ~$120/hr but could only get them ~$90/hr. Not too shabby.
Life-hack: take your hourly rate, multiply by two, add three zeroes.
90 * 2 = 180. 180 + 000 = 180k.
That assumes: - 40 hour work week - 50 weeks / year (2 weeks vacation)
That’s not taking into account W2 vs 1099 and if it’s a contract the lack of health care, 401K matching, company paid unemployment funding, time between contracts, etc.
Recruiter: So what are you looking to make?
Me: Well I'm making 55 now, so more than that.
R: That's $55/hour?
M: No, I make $55k/year.
R: ...
M: And now you understand why I'm looking for a new job.
Never tell how much you’re paid because your first negotiating mistake will carry on throughout your career. Instead state how much you want without basing it on your current comp. Hopefully you know that by now.
In my opinion, this is the true value you get from negotiation; just as useful as the extra salary itself. If you end up winning the negotiation but you see resentment and a lack of respect in the process, it should give you some information about the kind of party that you are dealing with. Additionally, it should mean you can get all of your offers up to the max reasonable range you'd expect, and then you have the option of going with the one that feels the best, where you're most convinced you'll be working with good people.
That's the critical part. You want to max your salary but not compromise integrity in the process -- if you make another 2% in first year salary but you end paying much more in sanity, poor fit, burnout, or lack of growth opportunities, you won't end out ahead. Get what you're worth in the short term, but be greediest about the long-term.
I had an offer from a Silicon Valley company that would have paid a lot better, but it wasn't full remote (or even hybrid) and I would have had to relocate. So I went into the less well paid no-name with full remote. I tried to negotiate at the beginning with the very real argument of a better paid offer, but they denied. Well, whatever I guess, I tried and full remote was more important to me (still is).
1.5 years later, I realized the environment was a bit too dysfunctional and toxic for my liking and I learned all I wanted there. Fished a new job quite easily a couple weeks ago (several offers), with a bit better pay and a nicer project where I think I can make a better impact and have a nicer environment.
Before I quit I talked with some people and tried to see if they may offer me a better salary. They wanted to keep me and were not happy about me quitting at all, but they were absolutely unable to offer me even just 10k more. What was a bit shocking to me is that HR tried to blame the workers and pointed to a "broken market" for SWEs. I was so taken aback by this delusion that I had no regrets quitting after and I will care even less about "doing it for the team" and I will certainly consider hopping more often again.
So, it highly depends on the company if you can negotiate. However, if you cannot even get the smallest of gestures towards your direction, then that's a pretty big red flag. I don't have regrets. With just 2 years of experience, I'm happy I learn these lessons early on.
My ultimate goal is to start my own company and I'm actively working on that on the side, so hopefully this farce of pretending to care making profits for other people will end soon.
In hindsight this should be a “how I quadrupled my salary” story. But I’m sharing it in case anyone who feels anxious about negotiating is selling themselves way too short. Go get more money. Relax about it unless you don’t want to. You’re gonna get more money regardless.
Unfortunately, this is how most "I tripled my salary in X years" stories look when you dig into the details.
I've spent a lot of time coaching people on interviewing and negotiating. With some people, half the battle is detaching them from their original compensation anchor point and re-centering on real market data.
On the other hand, I've also had to gently convince a lot of eager students that they can't expect $300K full-remote FAANG offers right out of college, despite whatever they heard on Reddit and Blind.
The only unfortunate thing is how many people don’t find their way to the same story. That’s why I shared it the way I did. I thought I was asking a lot, and many people will too. When I just… got it… I realized my negotiating position.
1. Hiring a negotiation consultant, and 2. Get offers from 3 FAANGs.
The consultant just told me what to say/email, and I did it. Not sure it would happen now 2 years later.
The consultant previously worked at both Amazon and Facebook. I was working at Amazon at the time, and got competing offers from Facebook and Google.
Even with the competing offers I’m very happy I spent $3k for the consultant. Lots of good drafts of emails ( I did still need to carry the email ), but lots of great advice about strategy, and about what buzzwords to say and to avoid, which company to talk to first and what number to ask for that would be very easy for them to hit.
We ended up pushing FBs offer up to the limit before triggering an escalation then sent that to Google to beat. I would NOT have done as well without them.
They even told me “FB is gonna try and pressure you with a time limited offer. The time limit is not real. Don’t feel the pressure.” Stupid info like this was itself worth the money.
I did have a job at the time, though.
1. Each level has a range of salary/stock that they can't go above and you can infer the range by looking at the reported info on levels.fyi. For my company you have no possibility of negotiating into a higher level.
2. If you haven't been offered a signing bonus just say the words and 10s of thousands of dollars will magically appear.
3. You can push back on their offers many times. Previously I'd only ever made one negotiation move but I think there were 3 rounds of back-and-forth for my current job.
buried the lede.
securing offers from 3 FAANGs is something very few people can do. that alone is immense leverage.
Nowadays after they cut all those people - yeah, definitely
* No US country so 300k+ TC is as rare as hens teeth
* Paid probably top 5% ile local comp I guess
* Equates to about $130kUS TC
* Don’t want to relocate
* A tiny chance of getting one of those coveted “remote” jobs (instead of remote-but jobs where the “but” is being in the US with rights to work there)
How can I go about getting an extra 25% or more from current employer? Remember I wont get a local offer higher than what I am on now unless I time travel and make myself a HFT C++ person, or a senior manager of 1000+ indirect reports.
Now I do get $120k on occasion, as long as it lasts (doesn't always last for long). But how I do it is my competitive advantage, like trading strategies there's not zero but negative incentive for me to generously share it with "everyone". In this area it's everyone for themselves :P
He didn’t tell me anything I didn’t know. But he had it all on the tip of his tongue, but I had to think about it for several hours.
I have some ex-coworkers and acquaintances working remotely from Europe for Bay area companies and they definitely have way higher compensations even without taking in account stock options.
This may not be the case for you, but I think most people's only experience with the United States (or any faraway foreign country, really) is from the news and / or temporarily visiting 1-2 major metros, making them woefully ignorant of what living there is actually like.
The United States has it's issues, for sure, but there are plenty of cities that provide ample conditions to live a "good life".
Urban planning is garbage. The likelihood of being able to walk or commute by something besides cars is close to zero.
Healthcare, guns, politics... Why would I pick this over anything in Europe?
The food is garbage.
The food is... whatever you buy or make. If you buy garbage food, you'll eat garbage food. If you buy healthy food, you'll get healthy food. Simple as. Urban planning is garbage.
Agreed. Every city in the United States that developed after the highway system was built in the 1950s has a long way to go to correct decades of poor urban design. Most cities are
actively taking steps to correct this, but we still have many decades to go. There are plenty of solid places to live, with human centric urban design, in the United States, however, you're just going to to pay a premium. Otherwise you get used to driving, which really isn't all that bad given how focused all of the infrastructure is on making it convenient, hah. I'd still take walkable communities any day, though. Healthcare
Anyone with an average professional job will have good health insurance through their employer.Anyone retired will have ok health insurance through Medicare.
The above cover the majority of the population. Anyone else definitely suffers, for sure. Obamacare is very expensive. I would gladly take a single payer system over the existing system, but if you're working professional, what we have is fine.
Guns
Gun violence is just not a lived reality for basically all Americans outside of the news and outside of certain economically depressed areas, like south Chicago. Doesn't mean we shouldn't have stricter gun control, though. Politics
Populism is definitely a real bummer, but the United States is not unique in this trend.Every state also has its own unique political environment. Federal politics is only a small part of the lived political reality for Americans. Local state politics are far more impactful, and there are plenty of liberal states enacting policies Europeans would be proud of.
Why would I pick this over anything in Europe?
America is a pretty sweet place to live along a significant number of important dimensions, but by no means is perfect, for sure.No European country is perfect either, even if many of them have a leg up on the United States along important dimensions like urban design.
Live wherever you want to live, but be careful of basing your life off angry social media posts and the news. They're not going to be very representative of reality.
I want to find a company and encourage the sort of company that pays all its employees fairly, well and with regular cost of living adjustments along with promotions (or raises), that I can remain with and see through it.
As employees, we should be encouraging companies to grow a culture of employee retention; and employers should be efforting toward the same.
This race to the bottom needs to stop; and, "Hacker News" wants to be a place full of startups. That is, a place full of companies that can make those decisions for their whole staff early and cultivate that style, themselves.
It’s fine to stay where you are. Stick around, know the place inside out, embrace the culture, be the culture!
But, if the goal is to maximize take home pay, the answer is to regularly find a new workplace. That’s the only way to maintain an annualized compensation growth rate that exceeds inflation.
There's a lot of books on it, "Staff Engineer: Leadership beyond .." is a good one (more towards Staff rather than Mgr/Director).
I rarely see people being hired at those levels, it's usually people from within the org that gets promoted with time.
If Bob from Accounting convinces Dave the VP your number is suboptimal or worse, counterproductive, you're gone, after 20 years of loyal and probably underpaid service.
If I in the UK ask for £150k outside of very few FAANG or finance companies, it just ain’t gonna happen!
Successful remote work is a function of company culture. Assuming you are allowed to work remote more than your peer how are you going to create a successful culture?
Usually from the discussions I gather, is that anything above 60k is a pain point from the recruiter perspective, even if it means having 2-3x the xp (say, 10y vs 3y) and somebody productive within the first month versus 6+ months of training.
> Hi HN! You really like if-else statements, right? Let me frame a humane conversation like salary negotiation as a bunch of conditionals so that it is within your comfort zone. If they say X, then repeat after me: "..."
Then HN follows the advice and comes back and complains about being stuck in a soulless job that they just learned to "remove their feelings from it". Just look at these comments as a tiny example.
About me: I have the final say in all of our hirings at a stable startup that many people have told me would be their dream job.
I will not hire a person who follows this process. Sure, against a recruiter you may be able to negotiate to push the number up. That's because they are looking for their bonus and only care if you finish your probation. Against me, you are trading off your image, because I try to see your role 2 to 5 years down the road. That's when a position truly pays off for us.
Basically, I am trying to understand if I can make you happy now, and keep you happy in the coming years. For that, you have to help me see you as a person WHO KNOWS WHAT YOU WANT.
Now, let's follow this article's advice on salary negotiation, and see where that lands us:
1. I ask you for your salary expectation. 2. You return the question back to me. (“Yeah, I have some thoughts around it but I was actually wondering what the salary range for the position is?”) 3. I either answer you or re-return the question back to you. 4. You give me the answer to question #1 anyways.
You are not negotiating. You are running a subroutine. You are also telling me that you are not an open nor a direct person. There is no "money on the table" that you can get from me by just asking the right order of questions. I want to know what satisfies you based on your lifestyle, what you heard from your friends, and what you saw online. I don't want to play mind tricks or be played. In the era of ChatGPT, I have seen it all. You hiding behind intricate words does no favor.
Same goes with what the article suggesting about leverage. In our previous posting, we got 500+ applicants. If I give you an offer, it is not for bargaining. I think I am a fair person and I try my best to meet your need. If you come back to me and ask for more because Adobe is offering you something interesting, I realize you don't really care about us vs Adobe, you are going for the best bid. Again, I want you to think about that 2-5 year timeframe, would I be in the right mind to count on you? Probably not. So I suggest that you take Adobe's offer and we move on to a candidate that we feel sees something special in us.
That being said, I get why people may try these tactics. people are worried that they are giving too low of a number and if they had said something higher, it would have been fine anyways. Well, you can ask me how do I ensure that people get their fair share and what policies we have to keep salaries competitive through promotion.
Trust me, it will be clear.
> I realize you don't really care about us vs Adobe, you are going for the best bid.
Er yeah. It's a job. Unless you're OpenAI right now, you'd be hard pressed to find a candidate who means it when they say they love your company vision. It's all theatrics and gate keeping by ego massaging. It's a rite of passage for junior devs to believe words like yours until they find fresh grads earning double their pay, and getting dumped onto the streets during layoffs.
To the junior devs: Passion and enthusiasm are positive attributes for a team's productivity, but they are equally fantastic traits for hiring managers to exploit. Never forget that. From: A very jaded senior engineer who has seen a lot from startups to tech shops to big tech.
So yeah salary is the most important common denominator, simply because at the end of the day, it's a written number and you know you're going to get it.
> I realize you don't really care about us vs Adobe, you are going for the best bid.
But do you (at least a bit) care about candidate? Why candidate should care about you and your company if on the first sign of any troubles (that completely unrelated to candidate) you will just fire him immediately?
And tell me that you will not fire him and work with loss. Tell me please.
Unless you’re profitable, there is no such thing as a “stable” startup and not even then.
Of course now you’re going to talk about “equity” which in a non public company is statistically meaningless.
If they are VC backed, all of the talk about caring is meaningless. Even if the founders are Mother Theresa reincarnated, the only thing that the VCs care about is an exit.
> There is no "money on the table" that you can get from me by just asking the right order of questions. I want to know what satisfies you based on your lifestyle, what you heard from your friends, and what you saw online. I don't want to play mind tricks or be played.
Asking people to give their number first is you very much playing mind tricks. I don't want to play mind tricks, I just want you to pay me fairly.
As a hiring manager, you have more of an insight into fair compensation than I do based on my lifestyle or what I heard from my friends. And you also want me to compromise my negotiating position by telling you a number first?