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▲How to negotiate your salary packagecomplexsystemspodcast.com
161 points by surprisetalk 4 days ago | 133 comments
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ryandrake 3 hours ago [-]
Patrick's "salary negotiation" piece has made the rounds here a number of times, and I always have the same reaction to it: It probably works, if you are already a software celebrity like Patrick, or some other highly sought after Captain of the software engineering industry. For us rank-and-file employee number 12887's, I just don't see it working--I've really never negotiated compensation significantly successfully in my 25+ year career. Here's how salary negotiation usually goes if you're not someone like John Carmack:

Them: We'd love to have you join the team! Here's your compensation letter, please get back to us within the next 2 weeks and we'll move forward.

You: Thank you, I believe my background and skills would suggest a compensation of $1.5X instead of $X. Is this possible with your hiring budget?

Them: The offer is for $X and we believe it is appropriate for your level.

You: Maybe my level should be higher then?

Them: Ha Ha

You: Looking at [website A, B, C] I see the average compensation for this role is $1.25X. Surely there is room to move this upward.

Them: We don't agree with that data. The offer is for $X. Shall we move forward?

You: What about equity or bonus, is there any flexibility with those numbers, or vacation time, or...?

Them: The offer is for $X. If you don't want the job, we can move on to one of our other 20 candidates who are in the pipeline for the role.

That's basically how salary negotiations went for almost the entirety of my career. If your results have been different, I'm kind of envious!

sokoloff 3 hours ago [-]
If you don't have a strong BATNA (Best Alternative to a Negotiated Agreement), you're not going to get very far with just asking.

"I received your offer for $X. I really enjoyed the interviews, meeting the team, and am intrigued by the problems I'd get to solve with them. Unfortunately, I have a competing offer for $1.25X from another company and I need to make sure my family is provided for. If you would match it, I'm excited to join, but if your offer is firm at $X, I'm afraid I won't be taking it."

If they really just need someone to hold down a chair, they'll probably not budge. If they really want specifically you, they're more likely to bend if they believe that's their only move.

entropi 1 hours ago [-]
Last time I got a job offer the hiring process took ~4 months with seven steps, and I had to answer within 3 days.

I do not get how is anyone realistically supposed to coincide the multiple offers they get. Unless you are already in an extremely privileged position, I cannot even imagine how you can do that.

Magmalgebra 31 minutes ago [-]
> I had to answer within 3 days.

If you re-read the transcript, I hope you will come to the understanding that this is a lie. The company is trying to leverage your desperation for a job.

> Last time I got a job offer the hiring process took ~4 months with seven steps

Just like increased compensation, gettting the timeline you want requires leverage. When interviewing I always communicate that I expect an offer from a peer competitor within the next few weeks - this expedies my interview process. I always end up with a minimum of 4 competing offers to use as a BATNA.

Something the article winks at here is that negotation has only a small expected payoff if you've navigated your career such that you're a "small fish in a big pond" so to speak.

Someone who can barely pass a FAANG interview likely can't negotiate much with Google but probably could negotiate at lower tier company like SAP.

flatline 2 minutes ago [-]
This was the standard advice 2-3 years ago when the market was hot, I can’t imagine this being feasible for most people right now.
bigs 7 minutes ago [-]
It happened for me once by pure chance.

I was looking to leave a secondment I was on, and received an offer, right as the leader of the client I was seconded to said we’d like to take you on permanently and we’ve cleared it with your company, here’s the offer. I used that as leverage and left.

Otherwise, I agree, it’s a snowball chance in hell to coincide them.

sokoloff 40 minutes ago [-]
If you’re applying to Google, apply to them way ahead of the others…
rsanek 43 minutes ago [-]
you tell everyone up front what your timeline is, months ahead of time. that way, all of them coincide and you get maximum leverage.

last job search i got 4 offers to line up that i could use in negotiations.

ryandrake 3 hours ago [-]
Basically correct. I guess my point is Patrick could have saved a lot of typing and simply wrote "Have one or more competing offers."
roncesvalles 1 hours ago [-]
In my experience, the proclivity of a company to negotiate entirely depends on how quickly they need to hire someone. If the requirement is to scale up immediately, once at the offer stage you're the fastest person on the planet who can start working in the role, and this gives you significant leverage.

If the company can afford to onboard someone any time in the next few months, they don't need to negotiate. They just need to keep the pipeline flowing until some candidate accepts their lowball number.

atrettel 2 hours ago [-]
In my experience, some employers don't even care if you have a competing offer. They will change nothing. I've written about this before [1]. To me, the best thing about having multiple offers is that you can at least make a choice.

[1] https://news.ycombinator.com/item?id=43598192

zem 2 hours ago [-]
honestly I have no problem with that if they are firm about not negotiating - I actually respect that stance greatly and see it as a green flag. it just bothers me if I am shortchanging myself working somewhere that other people have successfully negotiated higher salaries for and I have not.
aianus 1 hours ago [-]
This just means you'll be working with people that had no other option. Massive red flag.
zem 1 hours ago [-]
or that i'll be working with people who also appreciate a culture where your salary is not based on your negotiation skills, and you don't have to worry about making less than someone doing the same job as you simply because you were less convincing or had less leverage when you joined.
jt2190 3 hours ago [-]
Do you consider yourself an _excellent_ negotiator already? It really feels like you’re trying to suggest that negotiation can’t ever work for anyone except a handful of celebrities, even for those who are excellent negotiators.

Someone’s already asking about your BATNA, and I’m wondering if you negotiate all benefits (amount of time off for example) since your story focused on salary alone.

ryandrake 2 hours ago [-]
Based on my results, I am clearly not a skilled negotiator! I have found most companies to be inflexible around everything, from salary to equity to vacation time to health benefits to 401(k). The package is what it is, and if you don't want to take it, you can leave it.
jt2190 2 hours ago [-]
Interesting. I think there’s definitely a “meta-game” that negotiation requires you to prepare in advance if you want success. For example, knowing if the job opening is in a “cost center” or “revenue center” for the company, or how the job is funded. Clearly a well-funded department can offer more salary, and a revenue increasing job can pay more than a cost-savings one, since revenue has no upper bound and savings is bounded. Companies that have high revenue per developer can pay more in general. Companies that have to compete globally for talent have pay more than those that only have to compete in a local market. I can go on but you get the idea.
sokoloff 59 minutes ago [-]
As a hiring manager and someone who’s an employee rep on the 401k committee, I can’t even imagine how I could customize the 401k for an individual candidate. I think the same is true for health insurance.

If someone came with that request, I’d probably be amused but I doubt I could change anything.

danjl 1 hours ago [-]
We're you willing to walk away if you didn't get what you wanted? Or were you just hoping they would capitulate? IMHO, The key to negotiating is knowing where your red line is, and being willing to walk away if you don't reach it.
systemf_omega 8 minutes ago [-]
I can imagine many people's view of negotiation is asking "Can I have X" and when they get rejected just moving on with "Ok that's fine".
lazide 2 hours ago [-]
Sure, because you personally aren’t in a place you can just leave it.

If you don’t have a good competing alternative offer/option, you’re not negotiating, you’re begging.

And chances are, they have alternatives.

pcl 1 hours ago [-]
I don’t get the impression that his brand is based on conciseness.
k__ 2 hours ago [-]
I mean, they don't know AND you only need one "yes"...
zem 2 hours ago [-]
pretty much, my first bigco job I made the mistake of only applying to the one place (had a job already, was looking for a change but without any urgency), and they would not budge on salary, just said the offer was already very generous and at the top of their salary band for my level. the next time I was job hunting I had just been laid off and so was frantically applying to a lot of places, ended up getting several offers and that definitely made a difference (though interestingly enough no one was willing to negotiate on base pay, but they would on things like stock and signing bonuses)
pinoy420 45 minutes ago [-]
[dead]
whiplash451 2 hours ago [-]
> If they really just need someone to hold down a chair

I would not jump to this conclusion. The company might have a very deliberate compensation strategy. Giving $Y instead of $X to a newcomer at a given level without aligning other people at the same level to $Y raises serious concerns.

As a company, you don't have to let yourself bullied by other companies.

sokoloff 1 hours ago [-]
Agreed. If they just need a chair spring compressed, they won’t budge. That doesn’t mean if they don’t budge that they just need the spring compressed.

P implies Q doesn’t necessitate Q implies P.

2 hours ago [-]
octo888 2 hours ago [-]
"rank-and-file employee number 12887"s don't tend to find it easy to get multiple job offers at once to use as leverage ! Even more so in today's climate
xondono 19 minutes ago [-]
I’m hardly a “Captain”, and I’ve successfully negotiated salary increases several times.

The only thing you need is leverage, and yes, rank-and-file are not going to have a lot of leverage at a FAANG.

You can’t negotiate if you’re not willing to let the job go through.

wrsh07 2 hours ago [-]
I actually strongly disagree with this take and

1) after reading the original post immediately linked it to a friend who had an outstanding offer. She got a significant raise from fairly light negotiating

2) personally, I don't think of myself as a particularly aggressive negotiator. However, I have been able to truthfully discuss compensation using the tactics described with recruiters to get leveling and comp where I've wanted it to be for my last couple of jobs. Yes, I always had multiple offers. That's part of negotiating.

More generally, though, I think spending 30+ minutes (reading the piece and more) thinking about negotiating has helped me build a better mental model for what to bring to the table.

whiplash451 2 hours ago [-]
> She got a significant raise from fairly light negotiating

Either she had a competing offer, or the company she is interviewing for has weak processes. A company yielding "a significant raise from fairly light negotiating" is very worrying IMO.

Think about it: what does that tell you about the next newcomer that will come after you?

wrsh07 2 hours ago [-]
It was a different era, she was a particularly strong candidate and they had given a low-ball offer. I don't think she had a competing offer fwiw

(Less process is normal at smaller orgs, so that's also something to consider)

closeparen 1 hours ago [-]
L5 at FAANG and adjacent companies (Airbnb, Uber, Stripe, Block, Databricks, etc) is a rank and file, employee number 12887 rule. Yet it is compensated in the mid six figures, and the ranges are easily more than $100k wide. Position in the range depends on a number of factors, famously stock market timing is a big one, but competing offers and negotiation are certainly in there.
jstummbillig 32 minutes ago [-]
I would find this less confusing of a top comment, if it did not ignore vital information and advice that already is in Patricks piece (and apparently ignored, even after having seen it "a number of times"?). To anyone agreeing with this position, I would recommend giving it another read.

Which is not to say that this advice must lead to a raise for everyone who reads it, but if your current assessment of the piece is "this only works for super stars" then you have definitely not really ingested the ideas offered (but you might be making excuses for why that is).

tptacek 1 hours ago [-]
This could not be less true and I really wish people would stop spreading this idea, because it's costing other people lots of money. In fact, the Venn diagram mapping "software celebrities" like Patrick and expert negotiators has not much overlap at all. You've never heard of some of the best-compensated developers I know (and they don't work on "celebrity" projects, either); meanwhile, I can think of multiple "celebrities" who have gotten extremely raw deals --- one, for instance, was brought in to lead engineering & R&D at a security company working against organized crime, and didn't even get any equity.

Patrick is right: compensation is much more about negotiating skill than it is about reputation or (especially) notoriety, holding everything else equal.

lnsru 3 hours ago [-]
I am the 12887 too. Luckily applied at the place in emergency mode and was perfect fit. Negotiated +6%. Yeah! In the second year it was reduced by 3% coupling my bonus to unachievable goals. As someone wrote on HN: it is not their first rodeo. HR knows how to attract and get to the right salary level afterwards. What can I do? Swallowing is the only way. There are no job ads in my area.
lostlogin 2 hours ago [-]
> HR knows how to attract and get to the right salary level afterwards.

This has to be the key point. They do this all the time as part of their job. You do it every few years, or maybe every decade. Of course they are better at it.

Lu2025 3 hours ago [-]
How about extra vacation time? Does anyone have experience getting it when asked (and actually being able to take that time off)?
wrsh07 2 hours ago [-]
I expect this is one where if you're coming from an Etsy or Google that gives 5 weeks after 5 years of tenure you could negotiate for preservation of that perk, but it seems like it could be challenging depending on your batna (see definition elsewhere in comments)
jandrewrogers 1 hours ago [-]
Yes, I once added two extra weeks of vacation time.
marcinzm 3 hours ago [-]
You still got 3% in a market that’s not in your favor. And likely you’d have had -3% otherwise and not 0%.
psanford 49 minutes ago [-]
One of the key points to patio11's article is that there is only upside to negotiation with no downside. You are basically saying: negotiation doesn't work so why bother. Please stop.

I once negotiated a large raise at a job where afterwards my boss told me that he could not have justified giving me that raise on his own, but because I asked for it he was able to make the case.

Negotiating often works. It has no downside for you (besides making you feel uncomfortable) and major upsides that last well beyond your current role.

dan-robertson 22 minutes ago [-]
Maybe this is a stupid question, but it wasn’t clear to me reading your comment: how many times did you attempt negotiation and have it fail in roughly the way you describe?
whiplash451 3 hours ago [-]
You indeed have little to no leverage if you don't have a better offer elsewhere.

Was true in 2012, remains true today.

systemf_omega 2 hours ago [-]
You don't have to be a star programmer, fame isn't the only form of leverage.

If you're in demand, and you're good at what you do, the road is paved for you. Top companies have already set the bar.

Them: we offer 250k-350k

Me: I don't consider anything below 500

The answers I get vary. Some tell me to politely fvck off. Some tell me they need to discuss with leadership. Some just go for it because they know how hard it is to fill that role.

The justification is simple: why would I take a job with you if I can land an HFT gig at twice the pay?

dcsan 2 hours ago [-]
You had me until HFT...
systemf_omega 2 hours ago [-]
Doesn't have to be finance. AI can pay just as well. Tech too depending on seniority.
ipdashc 2 hours ago [-]
> You don't have to be a star programmer

> 250k-350k

> land an HFT gig

Respectfully, your perspective may be a bit skewed? OP's context was "us rank-and-file employee number 12887's".

systemf_omega 2 hours ago [-]
Many people working in these companies are as rank-and-file as it gets. Non existent public profile, no open source contributions, no flashy portfolio.

Not really in the same category as Carmack

deadbabe 2 hours ago [-]
The proliferation of AI and LLMs has completely obliterated leverage.

Don’t want the job for the salary offered? Too bad. Hire a cheaper person armed to the teeth with the best LLM coding tools and move on.

Unless you’re coming in with significant clout that will move revenue and relations to bridge partnerships across other companies, you will not be worth the extra $250k on skills alone.

Magmalgebra 1 hours ago [-]
This is situational - as a strong engineer I have more leverage than ever to demand ever more eye watering compensation.

Weaker engineers and junior engineers are in more the situation you describe. This is tough and I feel for these folks but it is possible for many people to become stronger engineers if they choose to put in the work.

I'd encourage you to not take on a feeling of hopelessness here.

systemf_omega 2 hours ago [-]
That's what bottom-tier companies always tell me. Last decade it used to be outsourcing. I was getting low balled left and right with phrases like "I can pay a guy from Asia a lot less for the same work".

Now it's LLMs. Same old.

deadbabe 2 hours ago [-]
Except now it’s for real.
lazide 2 hours ago [-]
Outsourcing was and is real too. It had and still does have tradeoffs.

LLM’s have similar if not worse trade offs imo.

spike021 36 minutes ago [-]
the people who can negotiate, especially when changing jobs, are almost always the ones who can get multiple offers.

i'm usually lucky if i can get one offer when interviewing. no room to negotiate that way...

shepherdjerred 3 hours ago [-]
I didn't try to negotiate my first job (I was just happy to be employed, especially at AWS)

My two jobs since I've been able to get more by... just asking for more, even without competing offers.

scarface_74 5 minutes ago [-]
I’m not a captain of industry by any means but I’m very credentialed in my niche of AWS cloud consulting specializing in app development since 2023 - 7 years of experience, 3.5 years working at AWS (Professional Services) open source contributions and a major contributor to popular official open source “AWS Solutions” in a certain niche - and I was not able to negotiate more than 5-10% for certain opportunities and some I couldn’t push them for more money at all.

My comp is good for non FAANG especially seeing that I work remotely in a non HCOL no state tax city. But it’s hard for normies to do significant negotiations. I also have “unlimited PTO” and fully plan to take 20-25 days at least.

whatshisface 2 hours ago [-]
You really have one option per scenario over a total of two scenarios as #12887, and they are "yes I will take this job," and "if you want me to leave my present employer, you would have to offer more than my current salary."
itronitron 2 hours ago [-]
I'm curious what your thoughts are on the "salary expectations" question in the initial phone screen or first stage. In my experience, I have never been asked that question and then moved onto the next step in the process, regardless of whether or how I answer the question.

So I am left thinking they are just collecting salary metrics for the position.

whiplash451 2 hours ago [-]
Never (ever) respond to this question early in the process. The company is just collecting market data.

Tell them that the salary should be negotiated at the end if the process is successful.

If they tell you "but we need this to make sure we're not wasting your time and ours", tell them "well give me a range for what you can do and I'll tell you if you're wasting my time"

acrooks 3 hours ago [-]
There are two fundamental ways to win a negotiation. By "win", I mean achieve an outcome outside the norm, such as an above market rate salary.

1. Negotiate from a position of strength

You pointed out a couple of these, like when you have a strong personal brand (like Patrick) or when the market dynamics favour employees. The former is not something you can control so, when the market is in this place, you should take advantage of it to propel yourself. However, the former is completely within your control. You can spend some time and effort building a personal brand. Many people discount the value of a brand and the effort spent building one, but it totally works. I have marketing-savvy friends who, since early in their career as juniors, spent a lot of time on LinkedIn thought leadership & brand building. And it totally works. In fact, I have one such friend who was recently part of a restructuring layoff (i.e., not related to performance). Because of the brand they built, once they posted about the layoff on LinkedIn, they had 12 offers within a week all higher than their previous salary.

Another area where you can gain leverage is when you already work at a company that wants to retain you. The only time a business will bend over backwards for an employee is when the conversation is about retention. To make the conversation about retention you need to be completely willing to walk, and your negotiating position is strengthened if you have counter offers. To maintain your political capital (which will be important if you stay) you need to be careful about how you play this game. I've worked with people in the past who approached the business confrontationally, saying "if you don't give me $X, I quit" - that strategy only works once. But there are ways to structure this conversation where you don't leave a bad taste in anybody's mouth.

2. Care about something different than your counterpart

Often the person you're negotiating with cares the most about optimising certain metrics. You should try to spend some time figuring out what those metrics are and see if there is something different that makes a difference in your life.

e.g., your employer might be really under the gun about managing fixed salaries. This is very common in a lot of businesses to try to manage their headcount. So they might be more willing to give you a $50k cash bonus compared to a $25k salary increase. Or maybe they're more open to an extra week or two of vacation vs. salary.

This phenomenon has been really helpful for me in the last year. I run my own business, but my business is fully bootstrapped, so I don't have a board or any investors to please. As a result, I'm not as motivated by ARR as other SaaS companies. Sometimes I encounter customers who would rather pay me a 3-4x one-time fee instead of ARR. By making these deals I immediately guarantee what would have otherwise been four years of cash (potentially with a cancellation risk during the term). A VC-funded SaaS business would almost never make a deal like this, because such a deal would not have a material impact on valuation.

Another example - I was moving recently and sold some furniture. I was chatting with somebody who was an optometrist who wanted to buy a few things, which I listed at $200. They offered $100. I countered, asking for the right to use their employee discount, and ended up getting $500 in value.

So you should also spend some time trying to figure out what your negotiation counterpart cares about. Maybe there is an arbitrage where you can both get exactly what you want, instead of needing to find an outcome where one person wins and the other one loses.

smokel 1 hours ago [-]
Why would one negotiate on a few hundred dollars when they're apparently capable of negotiating deals worth hundreds of thousands? In my opinion, the marginal benefit does not outweigh the potential downside of being perceived as petty.

The only reasonable conclusion I can draw is that they simply enjoy the negotiation process itself. I guess most of us do not.

Ifkaluva 3 hours ago [-]
In my experience the only thing that works is competing offers.
setheron 3 hours ago [-]
If you say a number, even 1.5x you've already lost. Replying with either yes (accept) or no are the only two responses that work.
brunooliv 22 minutes ago [-]
In my experience this never worked for me for the simple fact that I never had the skill and time to even GET a second offer to bargain against. I wouldn’t say I’m a bad developer, but I’m definitely horrible at interviewing and having to jump through several different steps at different companies just to bargain for a higher end of the range makes me feel like either the market is the problem or the expectations from companies are way unrealistic
dan-robertson 14 minutes ago [-]
I think expectations are often realistic in the sense that companies are generally able to hire sufficiently many people at acceptable prices. But I think it’s also the case that there are fashions in interviewing such that companies are mostly all trying to hire the same subset of candidates that do well at the current thing. So if you’re bad at the current style of interviewing it’s going to be more work than someone fortunate enough to do well at the current fad.
andy99 48 minutes ago [-]
I regularly exchange currency at the bank. There is a posted rate that I can get online. If I go to the teller, they will propose that rate as well, at which point I say "can I have the premium rate" and they say, ok, I can give you x - something 1% better or so.

Point is, I'm not negotiating with the bank teller, they have a flow chart they need to follow. For a lot of positions with big companies, it's going to be the same. There might be a path on the flowchart you can access, but you're not really negotiating. In some cases you may be able to break though this if there's a real person (not recruiter) that will push for you, but talking to recruiters / talent is like talking to the bank teller.

dan-robertson 20 minutes ago [-]
So even if you’re just advancing down a flow chart, the ‘negotiation’ option is better, right?
Sytten 5 hours ago [-]
That reads like something written pre LLM, pre mass layoffs and pre section 174. Reality is that engineers have way less bargaining power that they used to.

Aside, as a small startup I am generally upfront with the salary since if you are not in the range we can afford it is not worth having a discussion.

mgraczyk 5 hours ago [-]
If you have ~5+ years of experience and live in the US, things haven't changed. Regardless, negotiating matters more than ever.

At startups you negotiate for equity instead of salary but a lot of the same advice applies.

danjl 4 hours ago [-]
Startups also have more non-cash options. E.g. they can offer more than 4 weeks of vacation, unlike many enterprise companies. As a CEO, when I gave people 6 weeks of real vacation, they would never leave, since they cannot get that at bigger companies in the US. (We also stongly encouraged them to use their vacation, because a healthy work-life balance is better for the company.) Startups also have more flexibility on WFH, travel options, and other non-cash benefits like providing more authority over your schedule and tasks. They are typically strapped for cash, unless they are not actually startups anymore because they raised $100M, and just like the moniker.
autarch 31 minutes ago [-]
I'm working at a mid-size company, c. 5,500 employees. We have unlimited vacation (for US employees). I have taken about 6 weeks every year with no issues. I made sure to check that this was okay before accepting the offer, because unlimited can also mean "no one ever takes vacation".
danjl 27 minutes ago [-]
The problem with unlimited vacation is that the majority of engineers never have the guts to ask for it, just like they don't know how to negotiate. Unlimited vacation is a benefit for the company not the employee. It avoids taxes and complications due to carryover constraints.
autarch 14 minutes ago [-]
To clarify, unlimited vacation is the company policy for all US employees. I'm just saying you don't need to work at a startup to get 6 weeks PTO.
0x5f3759df-i 4 hours ago [-]
Maybe if you have 5+ years experience at FAANG or something.

I have 5+ years experience at a no name place and can’t even get an interview anywhere. Maybe my resume is shit but I’ve tried many different versions with no luck in the last 4-5 months.

braden-lk 3 hours ago [-]
There's been this vein of advice from the past decade that's in the realm of "just work at FAANG". Always rubbed me the wrong way; they make it sound so easy, lol. The couple of interviews I managed to get after hundreds of ghostings, I was absolutely demolished in the interviews. It seems like if you get nervous doing math problems in front of people who really don't want to be there (and tell you to your face), you don't get to work at FAANG.

Just started my own business instead.

marcinzm 3 hours ago [-]
Theres a difference between something being easy, and something being achievable given a large investment of time and effort. FAANG is the second. Not for everyone but if you have anxiety then practice, therapy and possibly prescribed medications for anxiety. I’m sure there whole groups of people who mutually pair mock interview to get over anxiety like this. Or that you can pay to interview you.
braden-lk 2 hours ago [-]
Totally; and big respect to the people who put in hundreds of hours of prep. I did leetcode, practice interviews, 4.0 gpa, all that. I think the big hang up for me was, no matter how many practice interviews I did, there were only 4 real ones, with long waiting periods between attempts. And honestly... 3/4 my FAANG interviewers were really rude/late/apathetic. I actually did make it to second round at Google on the third try, but at that point I was so exhausted with the process, I took an offer from a company that at least pretended to give a shit whether I joined them or not. Had a wonderful 3 years there building green-field B2C products.

Getting some work experience and then starting my own thing was a better fit for me.

MichaelZuo 3 hours ago [-]
Clearly the advice can’t be for the literal 50th percentile HN reader in 2025… because nowadays there are hundreds of thousands of readers.

And all the FAANG combined probably don’t even have half that many positions, with negotiable salaries, in total worldwide.

rsanek 31 minutes ago [-]
i mean, even if we only include Apple Microsoft and Google you're already up to more than half a million employees
mgraczyk 4 hours ago [-]
You may want to try moving to the bay area or NYC for a few years if you're not already in one of those places. It's much easier to get a good job, then you can move away after you have the "right" experience. Also follow the advice in the article, in particular find people you want to work for and DM them
SoftTalker 2 hours ago [-]
Only consider equity if there is actually a market value for it. Early stage startups hand out equity options that likely will not ever be worth anything.
ikiris 4 hours ago [-]
Startup equity is the equivalent to the old Foxworthy bit

"You can't write me a check?" I said, "No, I -- a check? Hell yeah, I can write you a check! I thought you needed money. Tell you what, I'm just gonna pay the whole thing off right now! I'm gonna be a congressman when I grow up."

mgraczyk 4 hours ago [-]
It's not really, because it's finite. You don't generally dilute the options pool when you hire new employees, you give them some slice of a scarce options pool
achierius 4 hours ago [-]
Sure, but there's an extent to which the the board and its constitutive shareholders already expect to be giving away options for new employees, and as such will have allocated a pool for such purpose -- both for the "standard" package, and for "hard negotiators". For traditional tech startups (i.e. ones not so flush with cash as OpenAI), giving these away is far easier than giving away more real-world, honest-to-god cashflow, because that directly drains your runway, while all equity does is make your cap sheet look marginally worse.
mgraczyk 4 hours ago [-]
> all equity does is make your cap sheet look marginally worse

But at the time the employee is negotiating this has already been decided. The company has some valuation and you are offering some known percentage of that scarce resource. You could argue that the valuation itself is the thing being manipulated (which is partially true), but that doesn't change the cost of the offer to the company in units of equity %

paulddraper 4 hours ago [-]
My bank account says otherwise, but it depends.
ikiris 4 hours ago [-]
So do all the lottery winners. It doesn't really change how a lottery works, or the likely financial result.
mgraczyk 4 hours ago [-]
What fraction of lottery participants win, vs startup employees? It's rare and there is luck, but the quantities matter. You are much more likely to make money from a startup and it's much more under your control as an employee
reillyse 3 hours ago [-]
That’s an interesting thought experiment actually.

If you think about the amount of money given up as a startup employee you will definitely get some winnings.

For example, say as a startup employee you are earning/being compensated 80,000 a year in equity. If you bought $80,000 of lottery ticket’s each year how much would you win. Depends on the lottery but most lottery’s have a rough payout of approximately 50-70%. Let’s say it’s 50%. So you would expect to receive back $40,000 per year.

Do half of all startups equity turn into cash, I think not. So probably more likely to make money from the lottery.

mgraczyk 3 hours ago [-]
You are confusing expected value with probability of "winning".

The purpose is to trade EV for a small probability of high payout. It's less extreme than the big ticket lotteries but more extreme than a scratcher. If that's not for you, don't do it

Also your last point is either obviously not true (if you're talking about big lottery winnings) or trivially true (if you're talking about $1000 scratcher prizes). More people made life changing money from a single company (Facebook) than all California lottery winners combined across all time

reillyse 3 hours ago [-]
I think you are confusing how lotteries work, most lotteries have additional prizes not just the big grand prize. There are a range of prizes.
reillyse 3 hours ago [-]
as an aside, I got to reading some lottery winning tips (https://www.smartluck.com/free-lottery-tips/california-fanta...). A real interesting hodge podge of statistical fallacies and other wishful thinkings but at the same time it does pull at our brains somehow. Like for example even though I know a run of numbers in a row are just as likely to happen as any other number I'm really unlikely to actually pick it as my guess - I suppose my brain just thinks I need some "balance" or the likelihood of this pattern happening is low. Randomness is hard.
mgraczyk 3 hours ago [-]
Pick a prize amount that is anywhere in the same order of magnitude as any engineers total compensation. For any such amount, there are more people receiving prizes above this amount from startups than lotteries
reillyse 3 hours ago [-]
But why can't you win n smaller prizes, money being fungible and all we can just tot up the smaller prizes.
mgraczyk 3 hours ago [-]
The total number of lottery winners who have won, in total, an amount of say 50,000 USD is at least 2 orders of magnitude smaller than the number of people who have received that amount or more from startup equity

You are making an empirical claim that can be made rigorous, it's just off by several orders of magnitude

reillyse 3 hours ago [-]
But why are you not including all the people who have won.

Surely the calc is, the number of money gambled in startup equity versus the amount of money gambled in the lottery.

Do startups payout at .5 or above, I think not.

lazide 2 hours ago [-]
Most startup gambling is on the form of time.
paulddraper 3 hours ago [-]
Less than half of startups have exits…

But most startup people don’t work at most startups.

reillyse 3 hours ago [-]
I've worked at startups that have had exits and the employees got zilch. I think even in the startups with exits the probability of an employee having their equity turn into cash money is very low (also I doubt 50% of startups have exits - I hear a number of 10% more often and even that seems high, I'd imagine 10% of YC startups have an exit and they are the most likely to succeed so I imagine when you add in all the other startups that percentage gets far far lower).
paulddraper 50 minutes ago [-]
Skill issue
3 hours ago [-]
paulddraper 3 hours ago [-]
Of course.

Also…the lottery and startups work very differently.

coleca 3 hours ago [-]
Yes, the lottery has rules and governance. It's a much safer bet. Startups can decide to devalue their employees' shares. I'd venture that the odds are at least stated on the back of the ticket with the lottery. Employees of privately held startups are often sold a dream of future riches that rarely happens. Even where there is an exit, often even founding employees get taken for a ride.
Trasmatta 4 hours ago [-]
Yeah, as someone with 10+ YOE, there seem to be tons of opportunities with good packages right now. Companies still seem to need lots of senior devs: the market looks much much harder for anyone with less experience right now
dakiol 39 minutes ago [-]
> Reality is that engineers have way less bargaining power that they used to

There is negotation power but only if you pass all the interview challenges. Only at that point you are in a position to name your number (of course you won't ask $500K when you know the company you are applying to pays around $200K... because you have done your previous research on that; you'll ask something between $200K and $250K and see how they react). Layoffs and AI hasn't change this (sure, thing, 5 years ago companies were hiring more and perhaps were more relaxed about this, but that didn't change the fact that you can only negotiate when they want you)

peab 4 hours ago [-]
that's because it was written in 2012! The original essay is here: https://www.kalzumeus.com/2012/01/23/salary-negotiation/ (Originally written: January 23, 2012)
onion2k 2 hours ago [-]
2012! is a very long way in the future.
have-a-break 4 hours ago [-]
Honestly at work LLMs seemed to make me less productive. For side projects they help but I've seen papers indicating this is the case for industry.

We as engineers have let the recruiters and VC funding brainwash us into lower salaries. Kind of looking forward to a rebound.

JonChesterfield 38 minutes ago [-]
I'm decently excited about the new world of hugely increased quantity of terrible code. Not absolutely sure how to go mining yet but it has opportunity written all over it.
rednafi 4 hours ago [-]
This is my experience too. All these LLMs and agents are great for bootstrapping projects faster than ever. They help immensely with bringing down the activation energy. So I do a lot more tinkering around in multiple languages that I wouldn’t have otherwise.

That said, once the project goes beyond a certain threshold, LLMs offer little more than a highly capable autocomplete. In larger codebases, the current context window is too small for the tools to even answer questions properly, let alone make any non-trivial changes.

Productivity starts going down once you try to use LLMs in a large codebase and expect them to be as helpful as they were in a smaller one. Often, these authoritative little shits will whirl you around in a doom loop and still won’t find any useful solution. And suddenly you find yourself having to clean up the mess.

I’d still say the productivity benefit is positive, but at the same time, the hype around these is bonkers. Employers are holding onto the hype cycle to bring down wages through FUD.

roncesvalles 52 minutes ago [-]
>Productivity starts going down once you try to use LLMs in a large codebase and expect them to be as helpful as they were in a smaller one.

Exactly this. I've really tried to find use for LLMs in my big tech company SWE job and I just can't. The context is just too large, and not just the code context. In the time that I can "explain" everything to the LLM, keep iterating until it spits out something semi-useful and massage that into something I can merge, I'd rather just do the whole thing myself.

But it's amazing for greenfield personal projects.

bluefirebrand 4 hours ago [-]
> LLMs offer little more than a highly capable autocomplete

I find LLM autocomplete extremely annoying compared to traditional intellisense

It is wrong way more and I don't want multi-line autocomplete, it's too intrusive

GardenLetter27 3 hours ago [-]
Are you using Copilot or Cursor? I find Cursor's one pretty good. Although they just butchered their pricing :(
casualscience 3 hours ago [-]
You need to setup the problem for the llm. If I am getting an error, I can normally piece together the 10k lines of relevant code much more quickly than I can track down the bug.

Llms are still a big speed boost there

roncesvalles 48 minutes ago [-]
If you see an error and can't immediately Cmd+Shift+F an error code or something and jump to the exact line of code that threw the error, that's an engineering problem.
dtnewman 5 hours ago [-]
For those who prefer reading, this is more or less an audio version of of his essay from years ago: https://www.kalzumeus.com/2012/01/23/salary-negotiation/
davidmurdoch 5 hours ago [-]
Tangential: What's with the disclaimer about reading on an "iDevice"? Do they struggle with lots of words on a single page?
tonfa 5 hours ago [-]
It's from 2012, mobile device screens were way smaller.
chgs 1 hours ago [-]
In 2013 I was buying books on kindle and reading them on my 4s just fine
hiAndrewQuinn 5 hours ago [-]
This was written over 10 years ago, when such devices had much lower resolution.
whiplash451 3 hours ago [-]
The main thing that changed since when this article was written is that companies are much less in a rush than they used to to hire people, which means that a lot of mechanics described in the article fall apart.

In particular, companies don't really look at how much they spend to hire someone. They'll just wait for the hiring committee to be "really excited" about a candidate before making an offer.

3 hours ago [-]
2 hours ago [-]
cornhole 4 hours ago [-]
I just ask some stupid amount of money first because there is literally no cost or downsides.
testfrequency 3 hours ago [-]
I can tell you that most hiring managers and recruiters find it offensive, and the conversation quickly shifts to how much do we care about playing games with this candidate who seems a bit reckless in suggesting a salary they know isn’t realistic.
baxuz 3 hours ago [-]
I find it offensive and playing games when they won't give me the ranges.

I've been at companies which paid me 1/2 of what some my peers earned. I don't have time for these games. Give me your salary ranges for the position and I can negotiate. Otherwise I'm pulling numbers out of my ass.

The recruiter wants to pay me as close to 0 as possible, and it's up to me to push back on that.

1 hours ago [-]
cornhole 3 hours ago [-]
hiring managers and recruiters are not people so its ok
k__ 2 hours ago [-]
Yeah.

The only good jobs I got directly from CEOs.

2 hours ago [-]
nrclark 3 hours ago [-]
When talking with recruiters, I usually decline to state the first number politely - saying something like "salary isn't the only reason why I'd take a job, and I always look at the whole package as well as the role. I'm sure your offer will be competitive."

On forms where I have to put a range, I put $1.00.

buttocks 4 hours ago [-]
Life was good for engineers 15 years ago!
dan-robertson 3 minutes ago [-]
Ok, but also engineers in the US are much better paid now than 15 years ago. In 2010 the big story in engineer comp was that Google, Apple, and others were conspiring to avoid competing for talent (and thereby driving pay up) [1]. It was roughly Facebook not being part of this scheme that started driving salaries up. A few years ago the popular story was that people were switching jobs because their compensation had been inflated by massive share price increases (ie you are promised x shares vesting over 4 years at sign on with refresher grants, but the value of x shares goes up a bunch over those years) and they wanted to maintain their high realised comp even though shares were no longer rising as much. The only way for that to happen was engineers getting paid very well.

[1] https://en.wikipedia.org/wiki/High-Tech_Employee_Antitrust_L...

grepLeigh 4 hours ago [-]
It still is! I think getting your foot in the door is much more difficult now compared to 5-6 years ago, similar to difficulty finding entry level work in 2008-2009 financial crisis.

Market conditions aside, the points the OP blog post makes about asymmetrical value are evergreen.

moralestapia 3 hours ago [-]
How do you negotiate when the position already has a fixed number in there that was even published along the job description?
throwaway219450 2 hours ago [-]
Let's assume the amount is fixed. One approach is to ask to re-frame the position to be better value.

Ask for working hours that effectively pays you more per day, like an 80% contract at the same comp. If they mumble HR and hours, offer to do 4x10 hour days. The magic phrase in corporate is "flexible working". This doesn't solve your comp going up, but you get a 3-day weekend and 52 more holidays a year.

This one even works at intensely bureaucratic organisations like universities. With grants, the amount you can be paid is very fixed, but almost anything else can be approved if three people sign off on it.

sokoloff 3 hours ago [-]
If there's a single fixed number (rather than a range), there's probably a reason for that (might be a government, university, or institute role with a fixed pay schedule, for example) and as a hiring manager, I'm assuming you're applying for the job as published, including the comp number.
Drblessing 4 hours ago [-]
Ask for $100,000,000