Worked at a startup for a bunch of years making 90k by the end
Got offered a place at FAANG. Recruiter pushed me a little bit on expected salary but I didn’t give one using all the approached from the linked article. They offered me 250k. I would have never ever assumed that I can be payed this much. Instead of accepting I again followed the advice and asked for time to think. I had no counter offers but spoke to the recruiter thanked them for the offer and asked if there’s room for improvement. And they were nice and reasonable, they said yes if there are counter offers or you are leaving unvested stock behind. I was leaving unvested stock in an unprofitable startup, but I wrote the amount and vesting schedule and got offer bumped by 25k.
After working there I considered going to trading shop. Used the same approach and they offered 400k. Again this number seemed insane at the time. So I asked for more, this time I had much lower counter offer. But I could use it as some form of leverage. They upped the offer by 150k by the end (this is sign on+ salary+guaranteed first year bonus).
I am writing this not to show off the numbers, but to show other engineers that your idea of how much you should be payed could be completely wrong. Let the employer give information first and don’t back yourself into the corner by revealing your ignorance of market or minimum comp you are willing to take.
I would think that about 20-30% are “senior”. I worked at AWS for 3.5 years until last year. I would assume the distribution is about the same thing for most other tech companies.
Doing a quick bit of research, you’re not to far off. My back of the envelop math is about 7.5% work at FAANG + Microsoft. Maybe 10% if you include other companies that pay in that range
I think your assumption is way off. From what I've gathered, each team typically has a single L6 engineer (some have zero), and each independent organization has a single L7 engineer. We're talking one senior engineer per 9-12 engineers, one principal per around 50 engineers.
Senior engineers tend to have a 1:1 correspondence with software development managers, whereas principal engineers have a 1:1 correspondence with senior managers.
> I would think that about 20-30% are “senior”.
You should check your notes, as they are way off. Even if you Google the topic you get 15% senior engineer, 2% principal engineers. I know for a fact that flagship organizations within Amazon have a single principal engineer, 4 or 5 senior engineers, and around 50 L4-L5.
L6s are tasked with interfacing with higher-ups, such as product owners and senior managements. They coordinate with principal engineers to design and deliver critical features. They help communicate and coordinate tasks with SDMs about the work that other SDEs need to do to reach goals.
By design, they are normally one senior SDE per team, and a single principal engineer per organization. They are there so that senior managers and executives can discuss plans, goals, and roadmaps. You definitely do not need a team full of interfaces.
What kind of work experience would you say was most valuable in climbing that ladder? Open source stuff? Anything you could show off?
1. The US tech giants (the "FAANGs"). These companies are so insanely profitable and they can afford to pay a lot, though they all have become more cost conscious in the past couple years.
2. Finance. Again, they've got a lot of money, and especially for trading firms it's usually more straightforward to assign value to individual developers than in other areas.
3. Currently there is a big desire for AI talent, so if that's your industry one of the big startups (OpenAI, Anthropic) or one of the smaller well-funded ones should be able to pay you well.
So I would say this person didn't so much "climb the ladder" as opposed to position themselves well to get hired at other companies that would pay them a lot more. And I think this person did it in perfect order, i.e. it's been said a lot on HN how "the startup deal" (i.e lower salary but more equity) is hardly ever worth it for IC software developers these days if you can also get a FAANG job, but it can be a great stepping stone to getting experience that leads to a better paying job at companies that can afford to do so.
I was leading enterprise app dev + AWS projects at a small startup making $x. I got a remote job working at AWS (Professional Services) as a mid level (full time direct hire) consultant making $x + 65K working remotely.
I got Amazoned and a year later, now I’m a “staff” consultant (full time) at a smaller consulting company making the same as I made as a mid level consultant at AWS.
If I were to work at GCP as a “senior” (one level down) I would be making $150k - $200K more than I am making now. But even that department has a return to office mandate. Maybe I would try it after getting a few more years under my belt working at this level
Defintiely could be. But not in this economy. I'll take what I can get.
But in general, it really is a matter of knowing your worth and what they could pay. IF you have a certain noteriety in a community of a domain and you get an offer, understand how much leverage you have vs. yet another front end web dev. Let alone 99% of students out of college.
I do want to emphasize being careful with current times, though. I've heard of very mild negotiations (were talking a 5k counter offer or an extra week of vacation time) leading to rescindings in 2023. Which is unheard of from 2022 or before. They'd at least hold firm in the worst case. But we're still in the middle of this circus that is probably going well into 2025.
Maybe I'm splitting hairs, but I think better advice is to simply do a lot of research on what comparable salaries are for the position you're looking for. There are tons of information sources online now that can give good info on accurate salaries, including breakdown of cash, bonus, equity, etc.
To your last point, you better be aware of who has the leverage when you start negotiating. If there are a hundred other qualified candidates, and you really need the job, going into "battle mode" over 2-3 percent is not a good idea. On the flip side, if you really are that "purple squirrel" for which there are few if any compliments, go for all you can get.
Your worth is a mixture of (but not limited to) your expertise and how you sell yourself, the supply and health of the market, and what markets are offering vs. What they can potentially pay. Too many factors to give universal advice. So you'll need to fill in the variables based on your current experiences.
Right now the market is horrible and I'm not a purple squirrel. So I want to take what I can get for now and just focusing on relieving short term debt over long term plans to improve myself.
If that's what you seek or think is your worth is an entirely different discussion.
The benefit is, if they can't pay you enough to join them, you don't have to waste your time going through some six-interview multiday gauntlet.
I'm not interested in going through the gauntlet either, but these things are surely related.
If you're OK with that, just visit the US and make some friends. Go to meetups and conferences. You will definitely find something much better than any EU offer (while still wildly underpaid in California) - that's your starting point. Do a good job, underpromise and overdeliver, and ask for referrals.
The supply of good, experienced software developers willing to work for $100k in the Bay Area is practically non-existent when "normal", nothing-special suburban houses there can go for a couple million. There are a much higher supply of developers willing to work for that in Poland because the CoL is so much lower.
Similarly, a gigantic reason American companies hire overseas in the first place is because wages are lower outside the US. Without that wage differential most of those jobs wouldn't exist.
When I came back to the recruiter, I asked how much room she had to negotiate, and asked if she could put me “in the middle of the band”. She immediately said yes and it resulted in a bump of $75k/yr or so.
The thing to remember is that recruiters key metrics are about hires. They desperately want to get people in the door, especially after going through all of the effort to schedule interviews. They will happily help you out within reason.
I got the feeling that several interviews were carried out afterwards out of politeness or because the recruiter "had to" do it, but the interview ended before it began. Than, there's either ghosting or almost immediate (like up to an hour past the interview) copy-paste email along the lines of "we decided to go with another candidate".
A few recruiters however were open that they've checked the salary for similar position in my country's capital city (Warsaw) and it's much lower than what I'm asking. Pointing out 20+ years of experience and listing accomplishments seems less important for a lot of businesses, than paying as little as possible.
I got a few links to these "check salary for [level] [position] in [city]" websites from recruiters. All these seem to be crafted in a way that undervalues employees by artificially lowering country-wide salaries to ridiculous levels.
If paying as little as possible wasn't that important to them, they wouldn't be hiring in Warsaw in the first place, but in the Bay Area, Seattle, Zurich, London, Sydney, etc
I've set up a small business with EU tax id over a decade ago and I'm issuing invoices to European countries (EU and Schengen) and North America.
It's a trade-off of giving up European employment safety, pension, some quality of life when working in different timezone, benefits and job security, to work for higher salary.
But it only makes sense until some business decides that they would like a contractor from Poland with a Polish salary.
Walk.
Any company that puts policy over people isn't a good company.
But you are right that this is not actionable.
With that said I tend to agree, most companies are shopping around for a bargain if they can find one.
Location-based pay in remote roles is a major red flag that the company doesn't reward merit.
It's much more easy to find an experienced tech lead even remotely, around London or SF, than say in some village in Bulgaria or Poland because no F500 tech company ever came out of there.
Companies like Google that have the infinite money glitch don't care about finding the best bargain employees, but most SW companies aren't Google.
What you do find a lot of in tech hubs is the type of people who move to tech hubs. This often means that in a certain type of company you get better "culture fit" by using a geographic filter (thus avoiding illegally filtering by protected characteristics), and you definitely get a higher percentage of people who are willing to structure their life around their career. And when you get enough of those people in a room together, they're certainly the types that will happily persuade each other that they represent "the best talent in the world."
Software is a potent leveler—all you need is a computer and you're on equal footing with the rest of the world—and I find that the best programmers are the ones who learned to do it for fun and only later made a career out of it. Those people are equally distributed across much of the world at this point, and if anything there are fewer of them (as a percentage of job applicants) in the tech hubs because the tech hubs attract those who chose software for the money.
But we should always keep in mind that these crazy salaries aren't all a result of impact software can make, but also as a bid to prevent other companies from hiring those architects. Paying someone an extra 200k/yr to potentially keep a new competitor from making 10m/year is an obvious bargain sale if you can afford it.
At least, that was the gameplan back in the '10's. I think we're past that point and those levels of salariesare only reserved for director+ level people in 2024/5.
I hope it reduces the mismatches of salary expectations in your hiring process. Less drama for everyone.
I would never apply, but that’s fine. I’m not a landscaper.
I usually ask "what do you expect to be paid" to understand if I'll make them happy or sad when discussing what I'll actually offer.
This is not foolproof and has caused some issues with people coming in as very good negotiators and thinking my inability to budge is because I'm being hard-line, when in reality it's because- as mentioned, I always offered the max for a role.
The second issue is that not all people are equivalently valuable, but I think solving that in the salary is terrible, because salary should cover your compensation for responsibility. If you have to reward someone valuable then it should probably be via bonus' imo.
Why don't you disclose the value to the candidate then, rather than asking what's their expectation?
Salary, equity, title, working hours, etc.
More information always helps.
Your answer is "More information always helps." That doesn't answer the question.
Hindsight and looking externally on the situation would have you think that you'd react differently, but it's a 5/5 repro rate.
If I think the money is enough then I'm quite happy, but if they expect more then I have to emphasise other parts of the job (remote first structure for example, and flexible working hours) - I wouldn't need to do that if their request was lower than what I offer.
they said that someone desperate to get a job will accept a low offer and keep looking for something better. and by asking them for their expectation this could be prevented.
if i am desperate for a job then i am going to give you a lower expected number in the hopes that i'll get the job and then keep looking anyways.
so no, i don't think asking a desperate candidate will help you avoid that problem.
You used to see bonus compensation in most financial companies. I'm not sure if that's still the case.
At my fist full-time job out of college (non-tech), the company gave everyone an extra paycheck as a Christmas bonus.
The next year, everyone got half a paycheck as a Christmas bonus.
The next year, everyone got a spiral-sliced ham as a Christmas bonus.
Before the following Christmas came around, the majority of people had gone to the competition across town.
That, and it should be individual, instead of the "based on how the company performed" thing many do.
A star engineer who overhauls cuts your server costs in half shouldn't get dinged because someone in sales couldn't be effective
My default answer to these questions is now “what’s your budget?” And if they return with a non answer, or try and push me to give a number without giving one themselves, I walk.
I can’t think of anywhere else where the seller (in this case the employer “selling” a position) of something hides the price and expects the buyer (the potential employee) to magically come up with number that meets their criteria.
What a dumb game we’ve developed for ourselves.
I mean, on the flip side, the employee wants to get as much salary as possible. You say this is a "dumb game" that we've developed, but nearly all negotiations work this way, and a lot of it is fundamentally dependent on leverage: how much does the company really want to hire the person, and how much does the person need the job.
I will say, having hired a lot of software engineers in my time, that I never see it as a bad thing if a potential employee gives a very high number. Similarly, I think it's totally reasonable for an employee to ask "what's the salary range for this position" and to expect an honest answer. But I have seen employees "negotiate themselves out of a job" because they've read too many "principles of negotiating" books and somehow act like we're negotiating over the end to the Ukraine War. Basically, if folks are going to be a total pain in the ass before the job has even started, I'm pretty sure I don't want to work with you (and every single time I've "overridden my gut" and thought "well, maybe this person won't be so bad, after all they're great technically", I e come to regret it). As you point out, the employee is obviously free to walk as well - in my opinion, it's probably better for everyone if things reach a "hmm, someone is going to be unhappy with this decision" moment that folks walk away.
Oh, you noticed.
How important is feeling "not screwed over" at the beginning of an employment important for you? Does it trump a great work environment and interesting things to work on? How sure are you that your subjective feelings during negotiations match how the employer actually is objectively?
It would seem intuitively obvious that there must be correlations between being screwed over in the beginning and then having a bad experience later on during the actual job as well. But I'm personally wary of blindly following intuitions in matters that relate to money.
Being able to just "walk away" from decidedly some of the highest paying jobs in the world (irrespective of the feeling of being low balled) is a privilege too.
Anyway, in my own personal experience, I was screwed over during the offer phase of a previous job, and the job was not great either - terrible wlb and politics, but I did learn a lot and became very efficient at my work. As a bonus I stopped caring about my work outside of being necessary for paying my bills, while still maintaining decently high quality output.
I had the opposite experience with my latest job - the recruiter was professional and empathetic, and I had a great offer experience. The job itself is great as well.
So yeah, maybe there are correlations, but I'm still just one data point and so I'm not keen to generalize yet.
- the candidate has a range of salary they expect or need
- the company has a range of salaries that they can pay
If these don't overlap there's no point going forward unless the range of the company is higher.
If these do overlap, it's worthwhile proceeding. Then it's a matter of skill. If you apply and ask for the top range in my salary band, and you are truly exceptional, I'll do my best to match it. But the ask needs to be commensurate to the skills you demonstrate in the interviews. The higher the ask, the stricter the criteria to match.
If you get to the end of the process without disclosing the salary, and you pass all interviews, I'll offer you for what I think you are worth. If you have an ask and did not disclose it, you might have just wasted everybody's time.
Believe it or not, negotiating a salary higher than your worth is a terrible idea. It might sound good, but it sets you up for failure.
I try to be as up front as possible with my expectations, but I've also got the seniority / experience to match what I'm asking for. Yet, people still try to low ball me as if I'm making up numbers.
I made the mistake once of taking a job after they low balled me, then met my asking salary after I flatly said no.
If you ask for a specific number or a range, and they offer you below that range, just walk away. Even if they come back with what you wanted, they'll resent your salary and have inflated expectations above reality. They've already demonstrated they didn't take you seriously. Just walk away.
that is something i worry about when i see a high offer. in part it's imposter syndrome, but also a lot of job descriptions are like we want the best, and you are super fast and an excellent this and perfect that, able to work in a high pressure environment, etc.
these claims are so meaningless. they don't tell me anything about what it is really like to work there.
who really wants to work in a high pressure environment with the expectation to be a rock star developer?
Personally, I like small companies / startups with a bit more pressure. People focus more on getting things done than playing politics and bike shedding. I can absolutely understand it is not for everyone though.
With regards to what you quoted, I was referring to the scenario where their initial offer was below your expectations, you said no, and they made a second offer that met your expectations. In this case, you're right, there is no way that you and the company have the same view of the monetary worth of your contributions. The well has been poisoned from the start.
I think it's reasonable to ask what an interviewee expects to make, but not reasonable to ask what an interviewee makes now.
I had a job early in my career and they asked to see my W2 from my previous employer to validate that my previous job income answer was correct and finish onboarding.
Much better to instead have a second competing job offer in hand. Clearly that’s more competitive than your old job you’re leaving anyway.
As a freelancer who gets paid by the hour or by the job, I've never been in a position to negotiate salary directly, so I wonder how tenable it is to politely decline to answer questions about your current salary, given that it may give the potential employer more leverage against you.
I equate this to businesses (not you employer but places like the cable company) asking for your SSN: they may want it, but you are not always legally or morally obligated to provide them with it.
The Worknumber product from ADP (and it's equiv from Paychex) covers a vast range of white collar employees. Perhaps most.
Your new employer has a very good chance of seeing precisely what your current salary is down to the paycheck level going back years to even verify raises and title changes.
Replying with what you require to make to take the job seems like a much safer bet to me.
You may not remember to opt back in to the "service" a certain number of months before you buy a car, for example. Then you're stuck either paying a higher interest rate because the lender sees you as riskier without a trusted method of verifying income, or you have to do a bunch of paperwork with the seller or finance company may or may not be willing to deal with.
Might be wise to do before you interview.
It doesn’t have to be a lie. Between base salary and the value of benefits (and expected value of equity) you have a wide range of where you can answer what you’re paid, what your compensation is, what your “take home” is (what does that even mean if you’re W-2 and 1099?), et cetera.
The mistake people make is forgetting to sum up the liabilities of working at some firms:
1. Commute time/costs from home at rush hour (3 hours a day is equivalent to a 30% to 40% pay cut)
2. Cost of both temporary and permanent housing (urban metropolis are economically hostile if you are paying over 27% of your income on your home)
3. Cost of insurance and healthcare (property crime, environmental disasters, and pollution)
4. Location specific risks like Crime/Violence, or Hazmat (money is meaningless if you are not enjoying life)
5. Never bluff in game theory... just explain the options... than follow through and just leave for the competition.
Tip: If you compete with desperate demographics to be at the bottom, than your quality of life may be far lower than expected.
Sometimes taking a $10k income cut makes more sense, than being a poser in a high tax bracket city. i.e. the amount of cash in your hands after taxes can actually be higher.
It is complicated for sure, but employee retention is usually a function of location, skill uniqueness, and wage rates. Best of luck =3
How is that ‘near zero’?
If you find 6 different division managers that entered the same facility as coders, than I may agree. You won't, but I respect your youthful idealism. =)
You have provided 0, and instead of acknowledging real issues... you present a straw-man argument as a poor substitute. In time, you will learn how the corporate world is structured. lol =)
You don’t have any rank or authority over other HN users… so they are free to ignore any ‘asks’ presented… and write about what they think is relevant.
It is about your conduct making unsubstantiated claims orthogonal to observable facts. Then (still) trying to change the subject when asked for proof.
It is how we both learn if observations are erroneous, and someone is blinded by their idealism. How about 3 examples, that would be twice as easy right... lol...
In time... you may understand kid. Best of luck =3
How are you going to convince me or any other passing reader that this isn’t just random nonsense?
I can’t even decipher half of the comment so I’m not sure if you understood my previous question…
One may find a dismissive attitude is ineffective with data-driven decision makers. Inferring folks experiencing this phenomena are "nonsense" is just disrespectful. =P
Being hypocritical on top of flippantly disrespectful does not lend credibility to your assertions about detractors.
Have a nice day =3
I think you are feigning ignorance, and avoiding a simple question about backing up hilarious claims with a very low standard of minimal proof.
You can believe whatever makes one happy. However, if you want upper level positions it usually means leaving for other firms, and or founding your own entity as a board member.
Good luck, the world needs more dreamers. =3
Because this sounds totally incoherent in relation to what I’ve written.
Best of luck, this conversation should have ended with the first Straw-man argument. bye... =3
Either they can match or increase it. If they can the conversation continues and the pay is set in stone never to be discussed again thru all interview processes.
You'd expect that they would be incentivised to place you somewhere bad so that you're a repeat customer, but there's something that seems to make this not true, perhaps reputation?
In terms of money it’s usually a percentage of the salary. So if the recruiter works on 10% then they have incentive to get you as much money as possible.
While $200K vs $220K means a lot to you over the course of your job, they aren’t going to risk losing a placement arguing for you to get $20K more so their firm can get $44K instead of $40k and the recruiter themselves can get maybe 60% of what the firm gets.
There was a famous similar study published in Freakonomics about real estate agents.
https://freakonomics.com/2008/02/real-estate-agents-revisite...
Of course this is done once you have a few years experience and aren't really looking. Though recruiters on LinkedIn & via email reach out and you can casually play the field for fun to potentially giving yourself a huge increase. Job jumping is a good way to really boost your salary.
Also most companies who do work with external recruiters only work with one company
I’ve been in software development since 1996 and looked for a job in 1999, 2001 (took a counteroffer), 2008, 2012, 2014, 2016, 2018, 2023 and a month ago. My job in BigTech in 2020 fell in my lap.
I have never seen a job market this bad. Even in 2000, as a regular old Windows developer I could easily find a standard enterprise job.
My only saving grace when I was looking both last month and last September was that I had 3.5 years of working at AWS in the Professional Services department (full time direct hire) and AWS partners love to get people from ProServe because they know we can be trusted to talk to decision makers and fly out to clients and lead and do the work.
But I usually would throw my resume up in the air pre-2020 and have multiple job offers fall in my lap.
I have recent experience. It’s definitely slower in the last 2.5 years. I see that as a different issue. If the hiring market is soft, then a recruiter can still be working hard for you if your offers aren’t as good. Some of that sorts out earlier in the process when you pitch yourself to the recruiter to be worth presenting to the employer.
What I personally did in early conversations is express my comfort with a longer search process and focus on the right mutual fit. That let them know that they may be overlapping with other applications, and also that they were competing with my job at the time. I realize I was fortunate to have a job to use as a motivator.
But £200k vs £400k is real!
That’s the real span for e.g. hedge funds in London. Actually, it was a few years ago. Probably more now!
In 10 years invested at $20K a year that’s 370k at 10% returns (about average for the S&P 500).
Thinking like that is how car manufacturers get people to pay for useless add ons.
On top of that, raises are usually a percentage of current base.
Would you tell someone making $20K not to worry about $40K
One is free from federal and state tax up to $23K (well $30.5K for me this year - check my username) and one is free from Federal, State and FICA up to $4250 if you’re single or $8500 if married.
That means I can shelter $39K from taxes.
That $20K is over half the allowable amount.
No. If you place someone and the company has a 3 month probation period. If the person does not last past probation the recruiter does not get paid.
Unless America is different, this is how it works in Europe, Asia, AU/NZ.
The only time this changes is contract work because contract work done via a recruiter is the recruiter might charge you at $150/hr to the company and pay you $100/hr taking $50/hr for himself.
But we are referring to cases where a good candidate wants $20k more. The recruiter is more interested in convincing a candidate to take the job than negotiating hard for them to get $220K.
The candidate especially in this market isn’t likely to jump ship in a year over $20K
You answered your own question: "they're super expensive for the company who you hire through"
The person that pays the recruiter money is their customer. The item their customers pay for is the recruiter's product, which is you.
So the recruiter's reputation does matters to acquire additional inventory, but it matters more for their actual customers. Selling bad fits to their actual customer, the hiring companies, would be business-ending.
It is so important to understand when you are the product and when you are the customer.
They are motivated to place you in a job, since that's how they get paid, but they want you to be happy with it.
In certain jurisdictions, it's actually against the law for employers to ask you for your current salary during the interview process (pre-offer), as that can perpetuate wage discrimination. (This is different from asking about salary expectations.)
It looks like 17 US states have a ban that applies to all employers: https://www.hrdive.com/news/salary-history-ban-states-list/5...
(The relevant laws in DC, NC, PA, VA only apply to local government, and AL's law is somewhat weaker in that it only prohibits rejecting a candidate based on not providing salary history.)
Notably, many of these laws are worded as a prohibition on seeking salary history, and do not differentiate between asking the candidate directly and querying third-party databases like The Work Number.
I tell them I live in NYC, and with my current compensation I can comfortably afford the preposterous rent.
There's absolutely no reason to feel like a loser on €65k.
In tech it's easy to forget just how lucky we are with salaries.
Before I've even had an interview, I have an acceptable salary range in mind. I usually ask for the top end of that range and have room to negotiate down, so when I'm asked that question, I have an answer at the ready.
The other is that I never reveal my past salary. Revealing it is a trap in so many different ways, and it's none of their business.
I don’t think it was an accident that it was the very last field in the submission process. I forgot to write down which one it was in my notes. So that’s less data I’ll have if they call me back.
It may also depend which job site or application tool you're using.
"If you offer 2*X I'm definitely in, I would have to do some soul searching if it is less than X, though."
what job post today doesn't include salary range?!
— What are your salary expectations?
— $X
— Ok! That means if we propose Y, would you envision it?
— Yeah, maybe, because I’m out of choice / No because I already have an offer at $X-1.
Source: I’m hiring (and yes, Y enters into consideration because most candidates overestimate their skills, but I always go for X if the candidate is as expected).
In reality most candidate are just bad at estimating their own skills (in both directions) and of course they know almost nothing about the match between the skills and the position.
I’m also at the point in my life where I know the amount of money I need to meet my short term and long term goals- pay bills, travel extensively with my wife and save for retirement. But after that I start optimizing for other things - fully remote, enough paid time off to enjoy travel, smaller company (I’ll never work for BigTech company again), interesting work that keeps me up to date with technology, etc.