Here's what nobody tells you: the single biggest mistake in tech salary negotiation isn't asking for too much. It's not asking at all.
I've been on the other side of the table for a decade, hiring engineers at Google, Meta, and Amazon. I've watched thousands of talented people leave $50,000+ on the table because they didn't know how the game works. This isn't about being aggressive or greedy—it's about understanding what companies expect and how to have that conversation professionally.
The Truth About Tech Salary Negotiation
Let me be blunt: companies are negotiating with you whether you realize it or not. That initial offer? It's almost never their best number. They're testing you. They want to see if you'll advocate for yourself—because if you won't negotiate for your own compensation, how will you negotiate for your team's resources or push back on unreasonable deadlines?
At FAANG companies, recruiters have compensation bands. The initial offer is typically at the 40th-60th percentile of that band. They have room. They expect you to negotiate. Not doing so signals either desperation or lack of market awareness—neither reflects well on you.
When to Start Negotiating (Hint: Not When You Think)
Negotiation doesn't start when you get the offer. It starts in your first conversation. Every interaction is positioning. Here's how to handle each stage:
First Recruiter Screen
They'll ask about your salary expectations early. Don't give a number. Seriously. The first person to name a number loses. Instead:
"I'm focused on finding the right role where I can have impact. I'm sure we can find a compensation package that works for both of us once we determine if this is a good fit. What's the range you're targeting for this role?"
If they push back, deflect again: "I'd really like to learn more about the role and responsibilities first. I'm confident we'll be able to work something out if the role is right."
Mid-Interview Process
If they absolutely insist on a number (some companies won't proceed without one), give a range—but make sure it's based on market data, not your current salary. Use levels.fyi, Glassdoor, and your network to get accurate numbers.
Here's the formula: Take the 75th percentile compensation for that role at that company. That's your floor. Add 15-20% for your ceiling. That's your range.
"Based on my research for Senior Engineers at [Company] with my background in distributed systems, I'm targeting $200-230K base, with total comp in the $350-400K range depending on equity. But I'm flexible if the role is exceptional."
Notice: specific, data-driven, and leaves room for discussion.
The Offer: How to Actually Negotiate
You got the offer. Congrats. Now don't screw it up. Here's exactly what to do:
Step 1: Always Ask for Time
Never negotiate on the spot. Ever. When they extend the offer:
"This is exciting, thank you! I'd like to review everything carefully and discuss with my family. Can I get back to you in 2-3 days?"
This accomplishes three things: shows you're thoughtful, gives you time to research and prepare, and signals you're not desperate.
Step 2: Understand Every Component
Tech compensation is complex. You need to understand:
- Base salary: Your guaranteed cash
- Equity: RSUs, options, or other stock compensation (understand vesting schedule)
- Bonus: Annual performance bonus (often 10-20% of base)
- Sign-on bonus: One-time cash to make you whole or sweeten the deal
- Benefits: 401k match, health insurance, learning budget, etc.
Calculate your total compensation (TC) over 4 years. That's what matters. A higher base with weak equity might be worse than moderate base with strong equity at a growth-stage company.
Step 3: Build Your Case
Don't just say "I want more." That's amateur hour. Build a data-driven case:
- Market data: "Based on levels.fyi, the median total comp for this role is $X"
- Your value: "I bring unique experience in [specific domain] that directly addresses your challenges with [their problem]"
- Other offers: "I have another offer at $Y" (only if true—never lie)
- Opportunity cost: "Leaving my current role means walking away from $Z in unvested equity"
Step 4: The Negotiation Email
Here's a template that works:
Subject: Re: [Company] Offer - [Your Name]
Hi [Recruiter],
Thank you for the offer. I'm genuinely excited about [specific aspect of role/company]. After reviewing the compensation package and doing market research, I'd like to discuss a few adjustments.
Based on [levels.fyi/competing offers/market research], I was expecting total compensation closer to $X for this role and level. Additionally, I'd be leaving $Y in unvested equity at my current company.
Would there be flexibility to:
- Increase base salary to $X
- Increase equity grant to $Y shares
- Add a sign-on bonus of $Z to offset my unvested equity
I'm confident I can bring significant value in [specific area], and I'm excited to make this work. What are your thoughts?
Best,
[Your Name]
Notice the tone: enthusiastic but firm, data-driven, specific, collaborative.
Advanced Negotiation Tactics
The Competing Offer Playbook
Having multiple offers is your strongest leverage. But you have to play it smart:
- Be honest about timelines. Don't fake deadlines—it backfires.
- Share specific numbers from competing offers. Vagueness weakens your position.
- Let each company know you're considering multiple options, but emphasize why you're excited about them specifically.
- Use offer deadlines to create urgency, but don't be adversarial.
The Sign-On Bonus Hack
If they won't budge on base or equity, push for a sign-on bonus. Companies often have more flexibility here because it's one-time, not recurring. Frame it as making you whole for what you're leaving behind:
"I understand the base and equity are at the top of the band. Would there be flexibility on a sign-on bonus to offset the $50K in unvested RSUs I'd be walking away from?"
The Performance Review Leverage
If they're truly maxed out, negotiate the timing of your first performance review:
"I understand we're at the limit of the comp band. Would you consider an earlier performance review—say 6 months instead of 12—so we can reassess based on my impact?"
This shows confidence in your abilities and gives you a clear path to more comp.
Common Mistakes That Kill Negotiations
Don't Do This:
- Getting emotional: "This offer is insulting" → Never. Stay professional.
- Making ultimatums: "It's $X or I walk" → You're not negotiating, you're threatening.
- Lying about offers: They might call your bluff or even verify with the other company.
- Negotiating too many rounds: One, maybe two rounds. After that, you look difficult.
- Focusing only on base salary: Total comp is what matters.
- Accepting immediately: Even if the first offer is great, sleep on it.
When to Walk Away
Sometimes the answer is no. Here's when to walk:
- They're offering significantly below market with no justification
- They're inflexible on everything and you have better options
- The negotiation process reveals red flags about company culture (e.g., they're adversarial, disrespectful, or dishonest)
- Your gut says this isn't right
Walking away is powerful. I've seen candidates decline offers only to get called back with a significantly better package. Sometimes they needed to know you're serious.
Your 2025 Negotiation Checklist
- Research market rates on levels.fyi, Glassdoor, and Blind
- Calculate your walkaway number (minimum acceptable TC)
- Understand all components of the offer (base, equity, bonus, benefits)
- Build your case with data and specific value you bring
- Practice your negotiation talking points out loud
- Ask for 2-3 days to review any offer
- Send a well-crafted negotiation email (use template above)
- Stay collaborative and enthusiastic throughout
- Know when to stop negotiating (1-2 rounds max)
The Bottom Line
Salary negotiation isn't about being difficult or greedy. It's about understanding your market value and advocating for yourself professionally. Companies respect candidates who negotiate well—it signals confidence, business acumen, and self-advocacy.
The conversation might feel uncomfortable, but so is leaving $50,000+ on the table. And that initial negotiation sets your baseline for raises, bonuses, and future offers. A 10% increase now compounds over your entire career.
So ask. Be specific. Be data-driven. Be collaborative. And remember: they made you an offer because they want you. You have more power than you think.