[HN Gopher] Salary expectations questions - How should you answe...
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       Salary expectations questions - How should you answer them? (2020)
        
       Author : mooreds
       Score  : 84 points
       Date   : 2024-11-10 16:45 UTC (6 hours ago)
        
 (HTM) web link (fearlesssalarynegotiation.com)
 (TXT) w3m dump (fearlesssalarynegotiation.com)
        
       | throwaway8754aw wrote:
       | I tell recruiters what I want to make from the beginning (my
       | first reply to them on LinkedIn or wherever they reach out) yet
       | say that's what I'm making now ..how competitive is this
       | opportunity?
       | 
       | 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.
        
         | dijit wrote:
         | Third-Party Recruiters are actually great, they're super
         | expensive for the company who you hire through, but they're the
         | only people motivated to make sure it's a good fit and are
         | neutral on it.
         | 
         | 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?
        
           | SoftTalker wrote:
           | Yeah if they put you in a crappy job or it's not what they
           | represented it was, you'll never use them again and you'll
           | tell your network not to use them.
           | 
           | 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.
        
           | wordofx wrote:
           | Recruiters only get paid if a candidate stays beyond a period
           | of time. If the candidate does not work out the recruiter
           | needs to find a replacement. Recruiters won't deal with shit
           | people because if they don't stay or are prone to not working
           | out they are a burden.
           | 
           | 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.
        
             | borplk wrote:
             | It's quite logical to think that they have an incentive to
             | get you as much money as possible but in reality it's often
             | not quite correct. Their stronger incentive is to establish
             | a relationship with a business and to continue feeding them
             | candidates at an attractive price point for the business.
             | The marginal amount of extra commission that they make on
             | your increased salary is not that significant.
        
             | scarface_74 wrote:
             | The incentive is not to make sure you get the most money.
             | The incentive is to make sure you get placed fast.
             | 
             | 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...
        
               | tomp wrote:
               | 200 vs 220 is likely noise. The recruiter shouldn't care
               | about tha2, and neither should you.
               | 
               | But PS200k vs PS400k is real!
               | 
               | That's the real span for e.g. hedge funds in London.
               | Actually, it was a few years ago. Probably more now!
        
               | scarface_74 wrote:
               | You shouldn't care about $20K???
               | 
               | 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
        
               | killingtime74 wrote:
               | you've not heard of tax?
        
               | scarface_74 wrote:
               | It's called a 401K or HSA...
               | 
               | 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.
        
               | willseth wrote:
               | 20k isn't noise to most people in a 200k salary range.
        
               | scarface_74 wrote:
               | And with most raises being 3%-4% a year, if you don't
               | negotiate that in the beginning, it's going to take 3
               | years to reach that amount after you start
        
               | wordofx wrote:
               | > The incentive is to make sure you get placed fast.
               | 
               | 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.
        
               | scarface_74 wrote:
               | There isn't an official "probationary period" at most
               | jobs in the US.
               | 
               | 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
        
               | throwaway8754aw wrote:
               | I don't argue as mentioned I tell the recruiters I'm
               | making 220k (while really I'm only making $175k for
               | example) already forcing them to either not continue the
               | conversation if they can't match or they can & the
               | conversation continues.
               | 
               | 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.
        
               | 1123581321 wrote:
               | The thing is, they won't get the placement if they don't
               | push to get a $220k offer and the other recruiter does.
               | It's competitive. It's a better model than real estate
               | because you aren't agreed to work with one recruiter.
        
               | scarface_74 wrote:
               | But only one recruiter is going to be placing you at that
               | job. Two recruiters trying to place you at the same job
               | is radioactive to the company. The company has to decide
               | who gets the referral money. Lawsuits start happening for
               | the one who doesn't get referral money.
               | 
               | Also most companies who do work with external recruiters
               | only work with one company
        
           | throwaway5752 wrote:
           | _" You'd expect that they would be incentivised to place you
           | somewhere bad so that you're a repeat customer"_
           | 
           | 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.
        
       | KingOfCoders wrote:
       | Only talk about past salary if it was 20% above market.
        
       | dijit wrote:
       | Unless you end up with someone like me who has a budget and
       | always pays the max.
       | 
       | 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.
        
         | SoftTalker wrote:
         | I think salary + performance bonus is generally a good way to
         | go. I've only had one job that did that. The base salary wasn't
         | remarkable but there was a bonus that had a component that was
         | calculated based on the overall performance of the company that
         | year, and a component that recognized individual performance.
         | So everyone got a bonus, but high performers got more.
         | 
         | You used to see bonus compensation in most financial companies.
         | I'm not sure if that's still the case.
        
           | AlotOfReading wrote:
           | A former employer did 40% bonuses. It made for a nice holiday
           | surprise even when they decided "the company didn't meet
           | expectations" and gave everyone half bonus. Eventually they
           | decided to "align with market expectations" and
           | coincidentally started hemorrhaging staff.
        
             | reaperducer wrote:
             | _Eventually they decided to "align with market
             | expectations" and coincidentally started hemorrhaging
             | staff._
             | 
             | 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.
        
         | Fargren wrote:
         | > Unless you end up with someone like me who has a budget and
         | always pays the max.
         | 
         | Why don't you disclose the value to the candidate then, rather
         | than asking what's their expectation?
        
           | paulddraper wrote:
           | Because it helps you position the offer, and emphasize/sell
           | certain parts.
           | 
           | Salary, equity, title, working hours, etc.
           | 
           | More information always helps.
        
             | Thorrez wrote:
             | Fargren is asking why a recruiter would want to to withhold
             | information.
             | 
             | Your answer is "More information always helps." That
             | doesn't answer the question.
        
               | itronitron wrote:
               | Yeah, the company can tell the candidate the salary they
               | will pay for someone in the role. If that doesn't match
               | the candidate's needs then the process stops. If the
               | candidate's performance during the interviews shows they
               | can't function effectively in the role, the process
               | stops.
        
         | the_gipsy wrote:
         | Are you not allowed to disclose salary first? Sorry to be
         | blunt, but if you are allowed, then this sounds incredibly
         | stupid.
        
           | dijit wrote:
           | I can disclose, but when I have people start trying to
           | negotiate as if it's a starting position, they get really
           | happy with the number and then irreconcilably annoyed when
           | they realise the number doesn't change.
           | 
           | 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.
        
             | Thorrez wrote:
             | Why not disclose it and also say "it's not up for any
             | negotiation".
        
               | dijit wrote:
               | that is exactly how it's presented, I give my methodology
               | and how I arrived at the number (market rate in munich +
               | 20%) and then give the number with exactly this caveat.
        
               | pm90 wrote:
               | Remember that people go by what others do. There is 0
               | penalty for lying about the fact that the number is not
               | negotiable and so recruiters will do that often. So job
               | applicants are conditioned to try to negotiate even if
               | told quite clearly that its the "final number".
        
             | em-bee wrote:
             | you could post it as a range. from something lower up to
             | what you actually intend to offer. or even below that. if
             | your goal is to avoid needless negotiations, then after you
             | tell them your range, they tell theirs and then you tell
             | them the actual offer.
        
           | em-bee wrote:
           | someone else replied and then deleted their comment, but i
           | think they made an interesting point that i don't agree with.
           | 
           | 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.
        
         | StableAlkyne wrote:
         | > If you have to reward someone valuable then it should
         | probably be via bonus' imo.
         | 
         | 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
        
       | slwvx wrote:
       | Stacey Vanek Smith wrote "Machiavelli for Women". She said in
       | radio interviews about the book that she wanted to put in the
       | book the suggestion that if an interviewer asks what you make, an
       | interviewee should reply with the real value plus 10%. Apparently
       | legal people at her publisher did not allow her to put this in
       | the book.
       | 
       | I think it's reasonable to ask what an interviewee expects to
       | make, but not reasonable to ask what an interviewee makes now.
        
         | romanows wrote:
         | That's fascinating, I wonder why that suggestion would be any
         | more dangeous than any other advice. Too bad she didn't just
         | put in a footnote describing why she can't suggest asking for
         | 10% more.
        
           | phil21 wrote:
           | Lying about this these days seems rather risky to me. Some
           | employers may not care, but some will.
           | 
           | 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.
        
             | analognoise wrote:
             | You can opt out of that I think, can't you?
             | 
             | Might be wise to do before you interview.
        
             | FireBeyond wrote:
             | You can opt out of The Work Number. It's a bit of a
             | convoluted process, but not byzantine - I did it a few
             | months ago, involves filling out a form by hand and
             | scanning it or mailing it, but I did get written
             | confirmation that I'd been opted out.
        
               | reaperducer wrote:
               | Note that this may make major purchases more complex in
               | the future.
               | 
               | 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.
        
             | JumpCrisscross wrote:
             | > _Lying about this these days seems rather risky to me.
             | Some employers may not care, but some will_
             | 
             | 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_.
        
         | ripped_britches wrote:
         | Bad idea to lie when there are other equally valid negotiation
         | tactics available.
         | 
         | 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.
        
           | kmoser wrote:
           | Theoretically, what they pay you should have nothing to do
           | with your current salary, given that your current salary
           | could be anywhere from $0 (e.g. if you're an unpaid intern)
           | to INT_MAX (if you're being vastly overpaid).
           | 
           | 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.
        
             | dullcrisp wrote:
             | The person getting paid INT_MAX probably fooled a king with
             | a chessboard.
        
           | dilyevsky wrote:
           | You only have w2 available for previous year. In any case
           | employers can pay to Equifax and the like to view your actual
           | salary which most payroll processors (including rippling
           | starting next year, i think) happily sells to them.
        
       | Apreche wrote:
       | I don't know if this is the best advice, but here's what I tell
       | prospective employers that ask for my compensation expectations.
       | 
       | I tell them I live in NYC, and with my current compensation I can
       | comfortably afford the preposterous rent.
        
         | Uehreka wrote:
         | It's very cool that you can get away with that.
        
       | eastbound wrote:
       | The real important question is the subsequent one:
       | 
       | -- 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).
        
         | sklivvz1971 wrote:
         | > most candidates overestimate their skills
         | 
         | 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.
        
       | voytec wrote:
       | I've talked to several recruiters and HR people who were prepared
       | for quite a different answer than I gave to this question.
       | 
       | 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.
        
         | FirmwareBurner wrote:
         | _> Pointing out 20+ years of experience and listing
         | accomplishments seems less important for a lot of businesses,
         | than paying as little as possible._
         | 
         | 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
        
           | dtnewman wrote:
           | From my experience, this is not necessarily true. Some
           | companies might have the budget to pay at the 50th percentile
           | in New York, or the 95th percentile somewhere else, and would
           | prefer to do the latter
        
           | voytec wrote:
           | I'm not interacting with companies seeking cheap labor in
           | Poland - like Intel. Despite their quite active recruiters,
           | all conversations with whom end up at "company policy doesn't
           | allow me to discuss salary range".
           | 
           | 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.
        
             | grugagag wrote:
             | I agree with you but your locals need to be educated on
             | this issue. Many may think it's a good deal, especially if
             | promises are thrown in. They would sabotage themselves but
             | it'll take some time for them to find out it's a bad deal.
        
             | reaperducer wrote:
             | _" company policy doesn't allow me to discuss salary
             | range"._
             | 
             | Walk.
             | 
             | Any company that puts policy over people isn't a good
             | company.
        
               | FirmwareBurner wrote:
               | So, the majority of companies?
        
               | marcosdumay wrote:
               | Well, yeah.
               | 
               | But you are right that this is not actionable.
        
           | lolinder wrote:
           | Presumably we're talking about remote roles here, in which
           | case this is nonsense. A Zurich developer is not worth more
           | in a remote role than a developer in Warsaw. The only reason
           | large cities have inflated salaries is because that's what
           | you have to pay someone for them to live within range of your
           | fancy office. If it's a remote role anyway, the companies
           | that aren't out to exploit you will pay the same salary band
           | for all roles anywhere where they hire.
           | 
           | Location-based pay in remote roles is a major red flag that
           | the company doesn't reward merit.
        
             | FirmwareBurner wrote:
             | Companies aren't moving to Warsaw to find the best talent
             | in the world. That talent is mostly already in the super
             | expensive tech hubs where the top software companies have
             | flourished for decades and cross-pollinated creating a
             | supply of experienced talent in the area.
             | 
             | 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.
        
               | lolinder wrote:
               | I don't know that it ever was true that "the best talent
               | in the world" is concentrated in the super expensive tech
               | hubs, but it's _absolutely_ not true any more post-COVID.
               | It 's largely a myth that's understandably popular among
               | Bay Area types.
               | 
               | 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.
        
           | Frost1x wrote:
           | To play the devils advocate there are some justifiable
           | reasons to try and hire international employees. Maybe some
           | component requires some physical proximity or has some large
           | benefit. Maybe someone is exceptional at a global level and
           | doesn't want to move.
           | 
           | With that said I tend to agree, most companies are shopping
           | around for a bargain if they can find one.
        
         | akomtu wrote:
         | Most of the software is more like landscaping than
         | architecture, but software engineers want to build fancy
         | bridges and gothic temples.
        
           | harimau777 wrote:
           | That's why they demand high salaries. You are paying so much
           | to convince them to build boring software instead of the
           | fancy bridges and gothic temples.
        
             | akomtu wrote:
             | Rather than hiring architects as landscapers and paying
             | them a lot to trash their skills, I tell candidates upfront
             | that the job is to mow a lawn and the pay is appropriate
             | for the job.
        
               | johnnyanmac wrote:
               | That's great transparency. And I imagine you get what you
               | pay for. That's honestly not a bad thing as long as it's
               | a living wage. You don't always need an achitect,
               | especially non-tech .
               | 
               | 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.
        
               | fn-mote wrote:
               | I respect this approach.
               | 
               | 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.
        
       | scarface_74 wrote:
       | I don't negotiate. If I'm already working and looking for a job
       | because I want more money, I know my market value and the
       | percentage increase it would need to be for me to leave.
       | 
       | 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.
        
       | Joel_Mckay wrote:
       | In general, vertical movement in the tech sector is near zero
       | these days. Thus do a search on the government published wage
       | ranges for the mean/maximum listed for your region (this is what
       | HR does anyway.)
       | 
       | 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
        
       | wrs wrote:
       | Good time to direct people to the classic work in this genre:
       | https://www.kalzumeus.com/2012/01/23/salary-negotiation/
        
       | goldeneye13_ wrote:
       | I always recommend this article:
       | https://www.kalzumeus.com/2012/01/23/salary-negotiation/ I think
       | this topic is super important and I'm really glad I didn't follow
       | advice of saying your "expected salary or expected +20%". Here my
       | anecdotal SWE salary history:
       | 
       | 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.
        
         | chamomeal wrote:
         | That is absolutely bonkers. The range of developer salaries is
         | so huge. Congrats on moving far above 90k!!
         | 
         | What kind of work experience would you say was most valuable in
         | climbing that ladder? Open source stuff? Anything you could
         | show off?
        
           | goldeneye13_ wrote:
           | I think what made the difference in both places is that I had
           | good projects I could talk about and the tell a good story of
           | this is the business problem, this is what we did, this is
           | how I contributed, this is the result. I know this is not
           | super helpful and sounds like standard STAR stuff. I was
           | lucky because I was given a chance to deliver large and
           | important projects and I think this is what they liked. This
           | comp is high but once you get into l7 and above or get senior
           | roles in trading firms numbers become even more crazy.
        
           | hn_throwaway_99 wrote:
           | I think the main thing his experience showed is that if you
           | want to make a lot of money, you need to position yourself to
           | move into industries that can pay a lot. For software
           | engineers that means 3 major options:
           | 
           | 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.
        
             | scarface_74 wrote:
             | For a real world anecdote:
             | 
             | 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
        
         | johnnyanmac wrote:
         | > to show other engineers that your idea of how much you should
         | be payed could be completely wrong.
         | 
         | 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.
        
           | goldeneye13_ wrote:
           | Notice I'm not suggesting that people go for "hard"
           | negotiation. You don't loose anything by not revealing comp
           | early. Worst case you will get offer that's too low. But best
           | case you get offered above what you expected.
        
             | michaelt wrote:
             | _> You don't loose anything by not revealing comp early._
             | 
             | 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.
        
             | johnnyanmac wrote:
             | I think another factor I didn't talk about was pay
             | transparency. My state has it and it's slowly expanding so
             | outside of like, Netflix's "100-600k" range you don't
             | really have to play many games here. Know your worth and
             | pick in that range internally. Go above if you really feel
             | you can.
             | 
             | 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.
        
               | hn_throwaway_99 wrote:
               | I see "know your worth" advice pretty frequently, and I
               | tend to think it is pretty bad advice for software
               | developers. "Your worth" is completely dependent on the
               | business the employer is in, and then of course a lot of
               | that "worth" can be due to the employer already having a
               | huge market (e.g. I've seen small decisions result in
               | multiple millions of additional revenue, but those
               | multiple millions were only possible because the employer
               | was already pulling in billions).
               | 
               | 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.
        
               | johnnyanmac wrote:
               | I think we're in general agreement. I say that's what
               | "know your worth" is about. If you choose a web dev
               | position, you're probably less vital than someone who
               | works deep down in compilers.
               | 
               | 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.
        
               | scarface_74 wrote:
               | Your "worth" is completely dependent on where you work.
               | That startup is never going to pay you as much as BigTech
        
               | johnnyanmac wrote:
               | Sure. that's part of "what they could potentially pay
               | you". Startups don't have money for 400k engineers
               | without crazy VC money and a ton of confidence. For the
               | rest, they offer equity.
               | 
               | If that's what you seek or think is your worth is an
               | entirely different discussion.
        
             | em-bee wrote:
             | at least one third if not half of the job applications i
             | have come across have a required form field for expected
             | compensation. initially i just wrote 0 or something
             | obviously bogus, but i got concerned that this was used as
             | a filter. so now i am not sure what to do. for european
             | companies it is probably ok to just write something as they
             | are unlikely to have a much higher range anyways. it really
             | helps though if they actually post their range.
        
         | ewuhic wrote:
         | Ah, the United States of America, this is hardly possible in
         | Europe, especially Germany.
        
           | goldeneye13_ wrote:
           | This is UK
        
             | 2-3-7-43-1807 wrote:
             | ouch ... that hurt
        
             | 2024user wrote:
             | ...are you hiring? :)
        
               | goldeneye13_ wrote:
               | If you are serious then I think trading firms are
               | actively hiring. There's a bunch of them in London jump,
               | Jane etc. comp will be very high there. I think faang
               | hiring is slower now, but not sure
        
               | 2024user wrote:
               | I was mostly joking but might start looking in the new
               | year. I'll keep trading firms on my radar, cheers!
        
           | petters wrote:
           | This is why we Europeans like working at American companies
           | (in Europe)
        
             | ewuhic wrote:
             | Now the question is where to find American companies
             | willing to do B2B/freelance contract without location-
             | adjusted bs.
        
               | thrw42A8N wrote:
               | Nowhere in Europe unless you want to never have free time
               | during daytime. If they don't location adjust, they
               | expect you to be available in their timezone.
               | 
               | 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.
        
               | hn_throwaway_99 wrote:
               | What you call "location adjusted bs" is actually just
               | supply and demand.
               | 
               | 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.
        
           | downrightmike wrote:
           | Not with that attitude
        
         | x2tyfi wrote:
         | I've had similar excited experiences. On one FAANG offer in
         | 2020, I asked for time to think, as you mention. I already had
         | awareness of pay bands and an idea of the range for this
         | particular role from levels.fyi.
         | 
         | 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.
        
         | ryandrake wrote:
         | This just seems incredible to me, to the point where I almost
         | can't believe it. Throughout my 25+ year career, I've 1. never
         | been positively surprised by the number I got, and 2. never had
         | a company increase from their starting offer. It's always very
         | close (within ~10-20%) to what I'm already expecting, plus
         | "Take it or leave it. There's a line of 50 behind you willing
         | to take that compensation." What are the exact mystical words
         | you are saying to get these kind of results? Not that it really
         | matters at this point. I'm pretty much at the tail end of my
         | career and making a small fraction of the numbers you're
         | posting.
        
           | goldeneye13_ wrote:
           | You can check levels.fyi large faang l6 and above get those
           | numbers. I think there is a massive gap between faang and
           | similar and smaller places. When I got the recent crazy offer
           | I interviewed in what I thought were good smaller companies
           | and several offered me below my current salary. And a couple
           | were in 110k range with absolutely no room for negotiation.
        
       | vitus wrote:
       | One other thing to have in your back pocket:
       | 
       | 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.
        
       | sklivvz1971 wrote:
       | Here's the thing:
       | 
       | - 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.
        
         | zdragnar wrote:
         | Nothing is more insulting to someone than knowing in advance
         | that their expectations are far beyond your own, putting them
         | through hours of interviews, then offering half the salary they
         | asked for plus funny money equity.
         | 
         | 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.
        
           | em-bee wrote:
           | _Even if they come back with what you wanted, they 'll resent
           | your salary and have inflated expectations above reality_
           | 
           | 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?
        
       | bitfilped wrote:
       | The premise of this isn't really true is it, at least in the US?
       | Don't most companies have your Equifax Work Number during the
       | interview process?
        
       | lethologica wrote:
       | This whole game is so stupid to me. It really feels like the
       | employer is trying to screw over the potential employee before
       | they've even joined.
       | 
       | 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.
        
         | aster0id wrote:
         | It's a dumb game, sure. But I'd say it arises from opposing
         | incentives, not necessarily from a real desire on the company's
         | part to screw you over.
         | 
         | 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.
        
         | hn_throwaway_99 wrote:
         | > It really feels like the employer is trying to screw over the
         | potential employee before they've even joined.
         | 
         | 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.
        
       | hinkley wrote:
       | One of the places I applied to had a required field with salary
       | expectation. I almost backed out of the whole process.
       | 
       | 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.
        
         | em-bee wrote:
         | from the applications i looked at at least one third if not
         | half of them had such a field
        
           | hinkley wrote:
           | I'm sure as my sense of urgency and my sense of selectivity
           | head in opposite directions I will think back to this
           | comment. So far I've been picky and have seen more like 10%
           | and most of that in the last couple weeks.
           | 
           | It may also depend which job site or application tool you're
           | using.
        
       | 2-3-7-43-1807 wrote:
       | if submissions like these make you feel like a loser. i'm in
       | germany and make 65k. and yet i can still look myself in the eyes
       | in front of the mirror every morning. so, don't let this drag you
       | down.
        
         | comprev wrote:
         | FAANG salaries for developers are often double, if not treble,
         | those of upper management where I work.
         | 
         | There's absolutely no reason to feel like a loser on EUR65k.
         | 
         | In tech it's easy to forget just how lucky we are with
         | salaries.
        
       | 1oooqooq wrote:
       | this article feels like ancient history from the dark ages.
       | 
       | what job post today doesn't include salary range?!
        
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