Mastering Salary Negotiation: A No-BS Guide for Software Engineers
Key Fact: Once you nail the interview and start talking salary with HR, you're the one holding the cards. You want the job, but they want you to sign on the dotted line. HR usually lowballs you by about 20% to see if you'll bite. Accept that first offer, and you're leaving serious cash on the table. Negotiate like you mean it to get what you're worth.
Why Negotiation Matters
Negotiating your salary isn't just about a fatter paycheck—it's about valuing your skills and setting up bigger earnings long-term. In tech, companies expect you to push back, and not doing so can cost you big over the years.
Here's how the math works against you: Say HR offers $150,000, and you take it without a word. You just saved them $20,000 to $30,000 that they were prepared to spend. Fast forward three years—with 4% annual raises, you're at $169,000. But if you'd negotiated to $170,000 initially, you'd be at $191,000. That's a $22,000 difference, and it only gets worse over time. Now imagine if you'd pushed harder and landed $180,000—you'd be looking at $202,000 by year three. One conversation determines whether you're a $169,000 engineer or a $202,000 engineer doing the same job.
And here's the kicker: if you counter with $160,000 and they accept immediately—like, suspiciously fast—you've just discovered they had way more budget than that. I've seen engineers receive instant "yes" responses and realize they could have asked for $180,000 or even $200,000. That quick acceptance isn't them being generous; it's them trying not to laugh at how much money you just left on the table.
What You Can Negotiate
Base Salary - This is your guaranteed money. If they offer $150,000 but the market rate is $180,000, don't settle for it. Counter with $185,000, knowing you'll land around $170,000.
Relocation Package - Moving to SF or Seattle? That's expensive. Request $10,000-$20,000 to cover moving trucks, temporary housing, and even house-hunting trips.
Signing Bonus - One-time payment that helps offset the equity you're leaving behind at your current job—usually $15,000-$50,000, depending on the level.
Equity/Stock - RSUs, options, whatever they call it. This often scales with your base salary, so negotiate that first.
Performance Bonus - Annual bonus tied to company/personal performance. Get the criteria in writing.
Before You Walk Into That Room
Research what you're worth. Levels.fyi is gold for this. Don't just look at base salary—total compensation is what matters. A $160,000 base with $40,000 equity beats $170,000 with no equity.
Set your floor and ceiling. Know the minimum you'll accept and aim for 15-20% higher than that. If your floor is $160,000, ask for $190,000.
Understand your leverage. Multiple offers? Great. Rare skillset? Even better. If you're just happy to have an offer, focus on signing bonus or relocation money.
The Actual Negotiation
When they throw out that first number, pause. Then say something like, "I was hoping for something closer to market rate," and state your researched number.
If they respond immediately with your request, you may have aimed too low. File that away for next time.
If you have another offer, use it: "I'm excited about this role, but I do have another offer at $165,000. Is there any flexibility here?"
When they say the salary is fixed (they always say this first), pivot: "I understand the salary range might be tight. What about a signing bonus to help with the transition?"
Common Mistakes That Kill Deals
- Taking the first offer - They lowball everyone by 15-20%. It's not personal.
- Revealing your current salary - This anchors the negotiation at a low level. Just say, "I'm looking for a market rate for this role."
- Making it about your expenses - "I need $160,000 for my mortgage" is weak. "My experience with [specific tech] typically commands $160,000 in this market" is strong.
- Negotiating without data - Don't wing it. Come with numbers from Glassdoor, Levels.fyi, or Blind.
Real Scenarios That Work
| Situation | Your Move | What Happened |
|---|---|---|
| First tech job, low offer | Researched market rate and asked for $130,000 instead of accepting $110,000 | Received $125,000 + $10,000 signing bonus |
| Senior role, capped salary | Pushed for equity when the base wouldn't budge | Kept $170,000 base, got extra $20,000 RSUs |
| Relocation required | Asked for moving package when salary was firm | Got $15,000 relocation + temporary housing |
| Multiple offers | Mentioned competing offer tactfully | Bumped from $155,000 to $165,000 |
The Bottom Line
Companies have salary bands, not fixed numbers. That "final" offer usually has $10,000 to $30,000 of wiggle room built in. The worst they can say is no, and I've never seen anyone rescind an offer because you negotiated professionally.
Your goal isn't to squeeze every last dollar out of them. It's to get paid fairly for what you bring to the table. Do your homework, ask confidently, and don't settle for their first offer just because you're grateful they want to hire you.
Remember: they already decided you're worth hiring. Now, make sure they pay you as if it were.