An update on salary transparency in job posts
directlyapply.com
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Recently saw a Senior Security Engineer role for Netflix, $100-$700k salary range.
How is someone supposed to reasonably negotiate that role? $100k is clearly a joke, $700k is clearly a salary someone got during the bubble.
Do I come in at $400k? Is $250k a bargain rate?
Slow patch times are often a feature. Laws that solve problems can seem irrelevant when those problems go away.
Personally I would ask for clarification, and if they refuse to provide any, ask for near or above the top-end of the range. Theres plenty of $215k salary jobs currently, so if you happen to not land this one, then no loss of what you never had. But if you happen to get this job, making $700k, simply for asking, then congrats!
It's a bit like saying "Employee - $10K-$10M p/a" - It's not very useful in a job posting, as you might reasonably assume someone being paid the top salary is not actually doing the same role as at the bottom range.
Heck, even in government they often aren't, though the rules governing government hiring force people to superficially hire as if they were.
This pricing scheme punishes people trying to be honest about their skill set. Otherwise why stop at the average? Just max it out and ask for $700k. Another $300k/yr won't break Netflix's bank and everyone else is getting rich that they won't care to call you out either.
That market comparison is fraught with conditions and often only follows ill-defined job titles.
If you take a look at one of these postings - https://jobs.netflix.com/jobs/292552236 - you'll note that the way it's written, there aren't any exceptional job requirements here. It's hard to see why the salary range has such a high ceiling.
Obviously in the interview, they could have much higher requirements, but we don't know that unless someone from Netflix chimes in.
For example,
>You have knowledge of various regulations and controls (SOX, PCI, CCPA, GDPR, etc)
how much is knowledge of each of those worth towards the final salary? Pricing each of those would add more fidelity to the market's signals, but companies often don't do that. Same with technical skills or knowledge of individual products: how much is AWS knowledge worth at the beginner, intermediate, and expert levels to a job that needs AWS knowledge?
This is like buying a publicly traded stock (not yolo'ing) with roughly 80% of the company information not available to you. That information is there for a reason because it promotes market efficiency. It allows you to more easily compare two companies that do similar work.
This is what is meant by honesty, but the job market hides this information. And the job market is often dishonest because it does not price these things, because it is hiding information from applicants, because that gives an advantage to employers. An extremely wide salary range here only serves that goal.
And on the employee side, it would mean that I can go learn AWS to a certain level, and I know that skill would contribute $X amount to the final salary that I can ask for. I don't have to play games trying to sell my skills for more than they're worth.
I've really liked the rare company that advertises a narrow pay range and then makes a single, non-negotiable offer for the most they can get the candidate.
The company has more data. The company has an existing pay structure. The company knows its own budget. They should offer what they're willing to pay. Anything else is extremely disrespectful, frankly, despite being the norm.
But does this mean that no one who is "worth what the salary range is" should be paid in the bottom half of the range?
Even GitHub, which pre-Microsoft was more stingy with its money, is offering $160k for entry-level new-grad hires last time I checked.
Get a competing job offer.
A minimum price lets labor sellers know if it is worth applying or not, and trends in supply and demand for that type of labor (based on which way the minimums are moving industry wide).
But say you don’t want to forge one for just any company because that might not be legal. You could make your own company with a site and make offer letters that way.
FWIW I've done this several times (multiple offer scenarios where I have companies compete against each other for me) and never once has a company asked to see actual proof of the other offers on condition of hiring me. If that was a condition, I would say, sorry, I'll go with one of the other ones
You really don't want to bring up a "competing offer" unless you're prepared to take the counteroffer/just walk away.
If I happen to already have a competing offer, sure. But when job searching I'm not carpet bombing resumes, I'm targeting specific companies that I think would be a match.
Though, in at least a somewhat healthy company, adjusting down nominally leaves too much of a bad taste, so layoffs are used instead where the remaining employees’ pay to qualify of life at work ratio goes down (more work responsibilities, more hours, less amenities at work, etc).
Also the last few places I've been at have made a conscious attempt to reset once a year or two to combat this effect. I can't speak to prior employers as that was before I started to be privy to how the sausage was made. Companies that don't reset compensation aren't worth working for.
You'd be surprised how many companies will simply pull you out of the candidate process and decline the offer. Companies you would probably work for, to be honest.
This works when you're pitting say, Netflix vs Meta or Apple vs Microsoft, or Google vs Amazon etc. but if you go down the ladder just a little, you'd be shocked at how much this doesn't work, is all.
I feel like its too general of advice to say you can simply play two companies off each other.
There's other tactics too, like setting a high minimum acceptable amount of compensation upfront, that one can use.
Its all a little risky in a way
I've done the "two competing offers" thing four or five times at companies big and small. I've never had a company rescind an offer or ghost. In fact they all seem to expect a competing offer; all have asked "Are you interviewing anywhere else?" at some point.
I agree with discussing a minimum early on in the interview process. It's a good smoke test to ensure neither party's time is being wasted.
As a hiring manager, I’ve certainly never done it, because I basically don’t care where else you’re considering working. I’ll put our situation (project, team, comp, culture, etc) forward and you decide if you think it’s your best option. We might negotiate a tiny amount, but if you find a place that’s a lot better for you, you should go there, but I’m not pulling back the offer we made.
More often, alot of times the company will say something about going with the other offer, like you stated, or something in that ballpark.
A couple times though, I had a company dutifully try and convince me that the perks and work-life balance were better, even thought the salary maybe was not. That was an interesting one.
But I haven't been in a true job hunt where I'm just hoping someone picks me out of a pile for over 20 years.
Even worse, im just now getting interviews/rejections for jobs I applied to months ago.
For this reason always try to cluster job interviews together as much as possible so that the offers come out around the same time. This situation is generally going to be very favorable for you as an engineer!
Consider that some hiring manager probably has been played games with for months in terms of head count and interviewing poor candidate after another. When they extend that offer to you, they want you seated yesterday. Mentioning "I have 2 offers, I've had 100% offers for every interview so far, and btw I'm interviewing at a FAANG tomorrow." - that will perk up some interest and can elicit a pro-active better offer.
I've had one outfit ask me, "How much for you to just stop interviewing and come work for us?" This sense of urgency on the employer side is the only time where an engineering employee has more power than the company. Most employers will try everything to make this window of time short - usually by trying to get you to stop interviewing and do no salary negotiation, or give you an exploding offer, or counter and say there are competing candidates.
It's also a risky maneuver. There are a lot of companies that will immediately, as a matter of policy, reply "then take one of those offers".
That's not to say it isn't a gamble worth taking, of course. Just that it comes with some risk.
Have they ever said that? Why would they interview you or make a job offer? I find this sentence hard to believe. Having a job offer is a signal that someone else did due diligence on you and is willing to commit capital at a year rate for your talents. Skin in the game.
Sure other companies don't have to compete on the price is if what you are trying to state that, but you didn't state that clearly.
Yes.
> Having a job offer is a signal that someone else did due diligence on you and is willing to commit capital at a year rate for your talents.
Sure, but applicants can and do lie about the existence of such offers, so ignoring such statements is not a terrible strategy. And that another company did "due diligence" is not as valuable as you might think. The investigation prior to an offer letter is often cursory, and different companies have different concerns they're looking for as well as differing levels of scrutiny.
Some companies also view an applicant leveraging other offers as a negotiation tactic as a bit of a red flag, depending on the sort of applicant they want to hire.
I'm not saying any of this is universal, nor that any of it is smart or appropriate. I'm just saying that I know there are a nontrivial number of companies that think like this.
> Sure other companies don't have to compete on the price is if what you are trying to state that, but you didn't state that clearly.
No, that wasn't what I was saying.
Not that I necessarily agree with location based pay scales. I haven’t really thought about this idea tbh. On one hand, a company can get location based pay scales simply by having an office in a different area. On the other, if you’re hired in San Fran and working remotely in (some much cheaper to live place) then it’s not really the same. Obviously, the state is benefiting much less from this scenario.
For that role it's most likely, they're hiring multiple security engineers and will level based on experience - most people they hire will probably make $200k-$350k. But the right person (10+ YoE in Security, relevant experience at competing streaming companies, strong interview performance) could definitely negotiate themselves to the top end of that range.
Research a bit about Netflix's comp philosophy and this will make more sense.
It's not bubble compensation. They aim to beat what someone else will pay for your skills, as long as they want you working there.
Until recently, they also only hired at a single IC level so the range was probably narrower.
So what happened in 2020-2022 where everyone was willing to pay more and more for the same skill sets?
I think we're agreeing on the same thing here, I am saying they will never pay $700k now, but they probably have someone at that comp level, so they have to list that in the range.
Netflix has always paid top of the market. They haven't dropped their salaries. Period, end of sentence.
But the company needs to fill particular niches, right? So if their philosophy doesn’t allow them to advertise for more or less experienced coders, it seems like they are signing themselves up for a more difficult filtering problem?
I guess that’s why they are unusual. If this sort of thing became really widespread, it would be easy to write a law with more onerous reporting requirements. Maybe we should require a distribution of salaries for that role, for example.
Ask for what you want.
If I'm making a salary I'm excited to earn, why do I care if I left money on the table? I'm happy!
If I'm happy, somebody else being a better negotiator than me doesn't make me unhappy.
If something in the future makes me unhappy about the salary I'm earning, then I'll address that in the future.
Salary range is what they can offer, but you should know your own value. If you think your time is worth $400k then ask $400k. It is simple as that.
At one point you should know what amount of money would drive you to get out of bed and do whatever client wants.
Netflix does actually compensate within this range, though.
The alternatives to these wide ranges are:
1. Create a lot of different postings with different ranges. This is how companies end up with Junior Engineer, Engineer, Senior Engineer, Staff Engineer, Senior Staff Engineer and other titles for what might be the same headcount. If someone comes in with skills and compensation expectations that don’t match the job they applied for, they get bumped to a different job listing. Nothing actually changes, but now the salary ranges are narrower in the job postings.
2. Give everyone similar base compensation and make the difference up in bonuses and RSUs, which aren’t posted in the job listings. These listings usually have lower compensation listed to signal the candidate that RSUs are going to be significant. For example, you’ll see Meta posting jobs with comp down to $129K even though everyone knows they’re going to get more RSUs than base comp. I’ve seen more companies claim to pay everyone the same, with the fine print being that equity grants can vary greatly from person to person.
Really though, I think highly compensated devs need to acknowledge that this law wasn’t made for them. It was made for the people applying to jobs where they don’t know if the typical compensation is $18/hr or $30/hr, or people who have been earning $45K for years who haven’t realized that their peers are getting $60K.
When someone is applying to $450K jobs at Netflix, they have numerous resources from levels.fyi to Blind that will reveal far more than a number on a job listing will. The law is not for highly compensated SWEs applying to the top 0.1% of jobs.
White collar pay has gotten totally out of hand.
Now, I agree that pay ranges across our economy are completely out of touch with reason, but in this context it would be downright stupid to take $100k for that role when non-FAANG could pay you more.
Conversely, you should have some idea of how much you're worth and where you fit in that $100-$700K range.
That’s my data, not my gut. So yes, there are absurd ones, but it’s not the vast majority by far. So don’t throw the baby out with the bath water based on some outliers
[1] https://www.aihr.com/hr-glossary/range-spread/#:~:text=A%20g....
$100K is easily a junior salary. $700K is a Principal plus salary in "big tech". A huge portion of that is RSU's and there may be weight thrown into personal performance with certain goals that align to company objectives. There are certain SRE jobs that are designed this way, especially if you're on the policy or proactive software development side of SRE work where the products you build (policy or software) take time to build and have huge associated returns in terms of monetary and customer trust.
For reference, my first SRE job was $75k/year.
Given the specific level, the salary range is indeed absurd.
No clue if there's any truth to that though.
https://californiapayroll.com/blog/sb-1162-california-pay-tr...
I don't think I fully understand this question. When I apply for a position, I already know what my minimum salary requirement is, and I negotiate based on that. Any published salary range doesn't affect that, except that if my minimum is above their maximum, then I know not to bother applying.
These are just your assumptions, but I aggree. However, when I see job posts with ranges like these, I just avoid the company, since it shows me that the company is: -lowballing employees -not transparent (i.e., posting nonsense salary ranges just to tick off the requirement)
That’s my data, which you requested, so yes, there are absurd ones, but it’s not the vast majority by far. So don’t throw the baby out with the bath water based on one outlier you just found
[1] https://www.aihr.com/hr-glossary/range-spread/#:~:text=A%20g....
> If a company violates the new requirement [2], “a job applicant or an employee” is entitled to remedies, according to a state Legislature website. Those remedies could include up to $5,000 in compensation [3].
[1] https://www.seattletimes.com/business/months-after-wa-employ... ("Months after WA employers required to share pay info, a flood of lawsuits")
I'm simultaneously shocked to see it's that low in states that require it. I suppose I shouldn't be — no law is obeyed 100% afterall — but I would have expected higher than 60%. This makes me think there needs to be higher penalties for failing to follow it.
I’m really surprised you say that. 90% of the jobs I look at for ‘software developer’ do not state salary. I have seen a couple with a ‘salary range’ but most don’t mention it or say “dependent on experience”.
I’ve been working in software for 15 years now in the UK and that’s always been my experience. Even though it’s standard, I still don’t see it as normal that such a vital piece of information is always missing.
Employee desperation to have income and health insurance means it's worth going into the interviews blind.
Without explicit salary ranges, the market functions through implicit cultural expectations about what an appropriate salary should be. Which of course has a lot of problems. For example, US software engineering salaries are stereotypically bimodal, and one of the staples of our mid 2010s job market discourse was people who'd only seen one hump insisting that the other can't possibly exist. (The question of whether there's actually two humps or just a wide range, I don't know if I've ever seen resolved.)
But usually it seems like they are used to claim superiority. "As a <identity politics tribe member>, this is why my perspective is more important than yours and you are wrong."
it's actually very simple, surprisingly many job posts still miss them:
* location, remote or relocation or hybrid
* pay range
* job description
this saves both sides' time in the end.I also like the 'simple apply' and in fact I only apply for those jobs, i.e. just send out resume, instead of filling out lots of personal info. if the employer needs that, please parse the resume yourself with a script.
Most job boards I've seem correctly parse salary ranges buried in job descriptions about 75% of the time.
Also, this is just one job board; in all my time using internet career websites, I have never even heard of directly apply, so the headline seems a bit sensational in terms of what's being claimed.
It's still of limited utility though, since one has to still use an external source to identify bonus percentage and possible range of equity values.
Maybe non native language speakers, immigrants, the immigrants’ kids, etc. more transparency in labor prices is helpful to at least the people earning less than the highest earners to show them where they can earn more.
If you don't do this, somebody qualified for Sr Staff will see a ridiculously low minimum, assume that's total compensation, and ignore your listing.
Secondly how many of those are ranges like $70,000-$150,000, or $15/hr-$30/hr type positions?
If bonus was actual profit sharing, I would agree that it would be a different thing more akin to a bet, but the bonus is contingent mostly on your personal “performance” with some bail options if company hits the skids, but salary is a bet in that case as well, as you are an at will employee.
My personal "performance" was fine.
However performance without clear goals is useless, and with clear goals becomes a gamed metric.