Salary negotiation tips for software engineers

Negotiating a salary as a software engineer isn’t just about numbers—it’s about recognizing your worth and confidently asking for it. Many engineers shy away from negotiation, fearing it might make them seem ungrateful or greedy. But here’s the reality: negotiating your salary is not only expected but important for your career growth.

This blog will explain how to navigate this necessary conversation to maximize your earning potential.

Know your market value: Research, research, and research!

Before you negotiate, you need to know what you’re worth. This means thoroughly researching the average salaries for software engineers in roles similar to yours, considering factors like location and experience level. Look into forums and communities where engineers discuss compensation openly.

Note: Check out platforms like Glassdoor, Levels, Indeed, and PayScale.

Why it matters: If you negotiate without knowing your worth, you must accept whatever the employer offers. Knowing your market value gives you the power to push back against any low offers with solid facts.

Pro tip: Don’t settle for average numbers. Find out what the top performers are making—aim for that range!

Trust me, employers rarely start with their best offer. Your research protects you from getting paid less than you deserve. Cross-check your sources and always aim higher!

Prepare a strong case for your ask

Once you know your worth, it’s time to build your case. Consider it like preparing for a court battle—you need evidence to prove you deserve more money. Start by compiling a list of your key achievements, skills, and any unique expertise you bring.

Map your skills to the job requirements: Carefully review the job description and the company’s needs. Highlight how your skills, experience, and achievements align perfectly with what the employer is looking for. Show them that you are not just a good candidate but the ideal fit for their specific challenges and goals.

Show your impact with numbers: Talk about projects where you made a measurable difference—like saving time, cutting costs, or boosting revenue. Numbers make your contributions more tangible.

Highlight in-demand skills: If you have specialized skills or certifications that are valuable to the company, mention them.

Companies care about what you can do for them, not what you did for your last employer. Frame your achievements to show how they will help the employer.

Let employers make the first offer

Telling a number yourself at the start can immediately limit your potential offer, especially if the employer has a higher number in mind. Instead, let the employer make the first move and present their range.

One of the biggest mistakes you can make during a salary negotiation is revealing your expected salary too early in the conversation.

How to respond when pressed: If asked about your expected salary early on, you can divert with polite responses.

How to reply

“I’d like to learn more about the role and the team before discussing numbers.”
“I’m flexible, and I’m sure we can come to a fair agreement once we know if this is a good fit for both of us.”

Why this works: If you say a number first, you might get stuck with a lower offer. Letting the employer start gives you an idea of their budget so you can adjust your counteroffer to match.

Why not disclose early?

Power shift: When they present a number first, you have more room to negotiate upwards. You’re immediately stuck within that range if you provide a number upfront.
Potential higher offer: If they’re interested in you, they may start with a figure higher than you had in mind. But you’ll never know if you set the price first!

Revealing your number too soon is like playing poker with your cards facing up. Keep them guessing! The longer you wait, the more likely they will offer a competitive salary range.

Don’t reveal your current salary too early

Many companies will ask about your current salary to set a starting point for their offer. But this can be a trap. If your current salary is lower than the market offers, it could limit your new offer. Instead, focus on your market value and the specific value you bring.

How to respond: Politely steer the conversation differently if asked about your current salary.

How to reply

“I prefer to focus on the value I can bring to your company and the market rate for this position.”
“I’d prefer to discuss my expectations based on the job requirements and industry standards.”
“Rather than discussing my current salary, I’d like to discuss the value I can add to your team.”

Set your expectations: Communicate your salary expectations based on market research.

Your past salary is irrelevant. It’s about what the market will bear for your skills now. Never let your past salary limit your future growth.

Practice your pitch

Negotiating is a skill, just like coding. You wouldn’t deploy code without testing, so don’t walk into a salary discussion without practice. Think about what you want to say and how you’ll say it. You could practice with a trusted friend or mentor or even run through it a few times to get comfortable with your points.

Prepare responses to common scenarios: How will you respond if they counter with a lower number? What if they ask about your current salary or previous compensation?

Control the narrative: Steer the conversation toward what you bring, not your past salaries.

Confidence isn’t arrogance. Approach the conversation as a partnership—you and the company want to find a fair number. Remember, they need you as much as you need them!

Aim high, but be realistic

When you tell your desired salary range, ensure the lower end is still within a comfortable range for you. Always start with the higher end—this gives you room to negotiate without exceeding your acceptable minimum.

The starting effect: The first number on the table often becomes the baseline for all further negotiations. Make sure it’s a number you’re happy with.

Be realistic but optimistic: Know the market and aim for the top of your range.

Salary negotiation is like playing chess. The first move sets the stage, so make it count. Don’t undersell yourself from the start!

Evaluate the full package

A compensation package is much more than just the base salary. You must consider bonuses, stock options, health insurance, retirement plans, remote work flexibility, and other perks. Sometimes, these benefits can make a slightly lower base salary more attractive.

Equity and stock options: If the company offers equity or stock options, understand their value and schedule.

Bonuses and raises: Ask about performance-based bonuses and the frequency of salary reviews.

Job stability: Don’t forget to consider job stability, especially in today’s ever-changing market. A slightly lower offer from a well-established company with a solid track record of growth might offer more security than a higher offer from a startup with uncertain prospects.

Think long-term! A higher base salary might seem tempting, but a comprehensive package—including job stability—could provide greater financial security and peace of mind over time.

Negotiate at the optimal moment

Timing is important in negotiations. It’s often best to negotiate after a major achievement or when you’ve shown your value clearly. Don’t wait until the final interview—start hinting at your expectations early on.

After showing your fit: If you’ve made it through several interviews and have impressed the hiring team, this is also a good time to start hinting at your expectations. When your skills and cultural fit are clear, the employer will be more motivated to meet your compensation needs to secure your acceptance.

During the offer stage: Once they’ve extended an offer, they’ve already decided they want you. This is your leverage point.

Timing is everything! Strike while the iron is hot, and the company is eager to have you on board.

Ask for more than just money

If they can’t budge on the salary, get creative. Ask for other benefits like more vacation days, flexible work hours, a signing bonus, or professional development opportunities.

Professional growth: Ask for company-sponsored certifications or conferences.

Work-life balance: Negotiate for a flexible schedule or remote work days.

There’s always something more to negotiate! If not money, find what else will make your life easier or your job more satisfying.

Be ready to walk away

It’s important to consider the deal-breakers before negotiating. Know the minimum salary and benefits you are willing to accept. If the employer can’t meet these requirements, be prepared to walk away.

Keep your options open: Continue job searching until you have signed an offer letter. Multiple offers give you leverage.
Exit gracefully: If you decide to decline, do so professionally. You never know when paths might cross again.

Walking away shows you’re serious about your worth. Don’t let FOMO (fear of missing out) keep you in a job that doesn’t meet your standards.

Confirm everything in writing

After your negotiation conversation, always follow up with a formal email summarizing the terms discussed. This clarifies the agreement and shows you’re organized and serious.

Detail every point: Include all aspects of the compensation package, from salary and bonuses to perks and benefits.

Ask for confirmation: Request a written agreement or an official letter from the company confirming these details.

Documentation is your safety net. Don’t let vague promises slip through the cracks. Get everything on record!

We also have some other comprehensive blogs with tips and examples on how to negotiate for a salary:

– How to negotiate your salary as a software developer

– Top 7 salary negotiation tips for software developers

Conclusion

Negotiating your salary is not just about money; it’s about valuing yourself and setting a precedent for your career. Remember, negotiation is expected, and it’s your opportunity to establish your worth. Don’t shy away from the conversation. Prepare, practice, and push for what you deserve. The worst they can say is no, but if you don’t ask, you’ve already lost!

But remember, to get a good offer, you’ll need to prepare for the stages, which include technical interviews like coding and system design and behavioral interviews. Educative offers the following courses on all these phases to help you succeed in your interview journey.

Muhammad Bilal
January 9, 2025

Frequently Asked Questions

Even as a new graduate or entry-level candidate, you should still negotiate. Highlight your relevant skills, any internships or projects, and your eagerness to contribute to the company. Research market rates for entry-level positions to make a reasonable request.

To negotiate a raise, compile a list of your achievements and contributions since your last salary review. Schedule a meeting with your manager, present your case, and be prepared to discuss how your work has positively impacted the company’s goals.

If the employer is unwilling to negotiate, assess whether the offered salary and benefits meet your minimum requirements if they do not, consider whether the job is worth accepting or if you should continue your search for better opportunities.

Yes, you should still negotiate! Even if the initial offer meets your expectations, there may be room for additional benefits or a higher salary. Employers often expect candidates to negotiate, so you might be leaving money or perks on the table if you don’t.

Startups or smaller companies may have limited cash flow, but you can negotiate for equity, flexible work arrangements, or other perks that align with your needs. Be flexible, but also ensure you get fair compensation for your skills and contributions.

Not likely. Employers expect candidates to negotiate, a normal part of the hiring process. Most employers will not withdraw an offer if you negotiate professionally and reasonably. Negotiating shows that you are confident in your value. If an employer does withdraw an offer just because you asked to discuss salary, it might indicate that the company isn’t the right fit for you in the long run.