Most developers leave money on the table. Not because companies are trying to underpay you—but because you didn't ask.
Negotiation feels uncomfortable. You've spent weeks interviewing, you finally got the offer, and you don't want to risk it. So you accept the first number. That decision can cost you $10,000-50,000 per year, compounding throughout your career.
This guide covers how to evaluate offers, negotiate effectively, and avoid the mistakes that cost developers money.
Understanding Tech Compensation
Before you negotiate, understand what you're negotiating.
Total Compensation (TC) Breakdown
In tech, base salary is only part of the picture. Your total compensation typically includes:
| Component | Description | Negotiable? |
|---|---|---|
| Base Salary | Fixed annual pay | Yes, but often within bands |
| Annual Bonus | 10-20% of base, performance-based | Sometimes |
| Equity/RSUs | Stock grants vesting over 4 years | Yes, often more flexible than base |
| Sign-on Bonus | One-time payment, sometimes with clawback | Yes, very flexible |
| Benefits | Healthcare, 401k match, PTO | Rarely, but ask about specifics |
Example TC calculation:
Base salary: $180,000
Annual bonus: $27,000 (15% target)
RSUs: $50,000/year ($200K over 4 years)
Sign-on: $30,000 (Year 1 only)
---
Year 1 TC: $287,000
Ongoing TC: $257,000
When comparing offers, always compare TC—not just base salary. A $160K base with $80K equity beats a $180K base with $20K equity.
How Levels Work
Tech companies use leveling systems that determine compensation bands:
| Company | Entry | Mid | Senior | Staff | Principal |
|---|---|---|---|---|---|
| L3 | L4 | L5 | L6 | L7 | |
| Meta | E3 | E4 | E5 | E6 | E7 |
| Amazon | L4 | L5 | L6 | L7 | L8 |
| Microsoft | 59 | 60-61 | 62-63 | 64-65 | 66+ |
| Generic | Junior | Mid | Senior | Staff | Principal |
Why levels matter for negotiation:
Each level has a compensation band. If you're at the top of a band, the only way to significantly increase compensation is to negotiate for a higher level. This is often easier than pushing base salary above the band maximum.
If the recruiter says "the offer is at the top of the band," ask: "Is there flexibility on leveling based on my experience?"
Before You Negotiate
Preparation determines success.
Research Your Market Value
Know what you're worth before the conversation. Use multiple sources:
Levels.fyi - Best for big tech, shows verified TC by level and company. Filter by location, YOE (years of experience), and role.
Glassdoor - Broader coverage, includes smaller companies. Less reliable for TC accuracy.
Blind - Anonymous forum where tech workers share offers. Great for recent data points but verify against other sources.
Hired/Triplebyte - If you've used these platforms, you have salary data from actual offers.
Your network - Colleagues who've recently changed jobs often share ranges privately.
Build a range:
- Low end: Minimum you'd accept
- Target: What the market pays for your level
- Stretch: Top of market for strong candidates
Never Share Your Current Salary
When asked about current compensation:
"I'd prefer to focus on the value I can bring to this role and what the market rate is for this position. What's the budget range for this role?"
Many jurisdictions now ban salary history questions. Even where it's legal, you're not obligated to answer. Your past salary has no bearing on your market value today.
If pushed, redirect:
"I'm looking for total compensation in the range of $X-Y based on my research and experience. Is that within your budget for this role?"
Timing Matters
During interviews: Avoid discussing numbers. If asked for expectations early, deflect:
"I'm focused on finding the right fit first. I'm confident we can agree on compensation once we've determined I'm the right candidate."
After the offer: This is when you have maximum leverage. They've invested time in you, chosen you over other candidates, and want to close. Don't rush—take time to evaluate.
The Negotiation Conversation
Most negotiation happens via email or phone with the recruiter. The recruiter is not your adversary—they want to close you. But their job is to close you within budget.
The Initial Response
When you receive an offer, never accept immediately:
"Thank you so much for the offer. I'm really excited about this opportunity. I'd like to take a couple of days to review the full package. When do you need a decision by?"
This is completely normal. Taking 2-5 days is expected. Use this time to:
- Calculate total compensation
- Compare to your research
- Prepare your counter
Making Your Counter
Be specific and provide reasoning:
Email template:
Subject: RE: [Company] Offer Discussion
Hi [Recruiter],
Thank you again for the offer. I'm excited about joining [Company] and the opportunity to work on [specific project/team].
After reviewing the package and comparing it to my market research, I'd like to discuss the compensation. Based on my [X years of experience in Y], I was expecting total compensation closer to $[target amount].
Specifically, I'm hoping we can discuss:
- Base salary of $[X] (currently offered $[Y])
- [Sign-on bonus / additional equity / etc.]
I'm flexible on how we get there—whether through base, equity, or sign-on bonus. What's possible?
Looking forward to discussing.
Key principles:
- Express enthusiasm first
- Be specific with numbers
- Provide reasoning (experience, market data)
- Show flexibility on components
- End with an open question
Common Scenarios
"The offer is final"
"I understand there may be constraints. Is there any flexibility on the sign-on bonus or equity grant? Or could we revisit compensation after six months based on performance?"
"What would it take to get you to sign today?"
"I appreciate the urgency. If we could get the base to $X or add a sign-on bonus of $Y, I'd be ready to move forward."
"We don't negotiate with candidates at your level"
"I understand you have bands. Is there flexibility on the level I'm coming in at? My experience with [specific skills] might warrant consideration for [higher level]."
You have a competing offer:
"I want to be transparent—I have another offer at $X. I prefer [Company] because of [specific reason], but I need to make a financially sound decision. Is there room to close the gap?"
Only mention competing offers if they're real. Fabricating offers can backfire.
What's Negotiable Beyond Salary
If base salary is fixed, negotiate other components:
| Component | Typical Flexibility | How to Ask |
|---|---|---|
| Sign-on bonus | High | "Is there room for a sign-on to bridge the gap?" |
| Equity/RSUs | Medium-High | "Could we increase the equity grant by 20%?" |
| Start date | High | "I'd like to start on [date] to wrap up current commitments" |
| Title/Level | Medium | "Based on my experience, I believe I'm qualified for [level]" |
| Vacation/PTO | Medium | "I currently have 4 weeks PTO—can we match that?" |
| Remote work | Depends on policy | "Is there flexibility on the hybrid requirement?" |
| Relocation | High if applicable | "What relocation support is available?" |
| Review timing | Medium | "Can we schedule a compensation review at 6 months?" |
The Sign-on Bonus Play
Sign-on bonuses are often the most flexible component because they're:
- One-time costs (not recurring)
- Not part of salary bands
- Easy to justify internally ("closing candidate")
If base salary is stuck, push here:
"I understand the base is at the band maximum. Could we bridge the gap with a sign-on bonus? An additional $20K sign-on would make this work for me."
Common Negotiation Mistakes
Accepting Too Quickly
Excitement makes you want to say yes immediately. Resist.
Once you accept, negotiation is over. Take at least 24-48 hours, even if you're certain. This gives you time to think clearly and leaves room to come back with questions.
Negotiating Only Base Salary
Base salary is often the hardest component to move (salary bands, internal equity considerations). If you only focus there, you miss opportunities:
- Sign-on bonus: Often $10-50K available
- Equity: Can sometimes be increased 20-30%
- Level: Moving up a level can mean $30-50K+ more
Giving a Range Too Early
If you give a range, you'll get the bottom. "I'm looking for $150-180K" becomes a $150K offer.
Instead, give a specific target:
"Based on my research and experience, I'm targeting total compensation of $200K."
Burning Bridges
Negotiation should be professional, not adversarial. Don't:
- Issue ultimatums ("Take it or leave it")
- Lie about competing offers
- Ghost the recruiter
- Become aggressive or emotional
Even if you decline, the tech industry is small. You may encounter these people again.
Accepting Counter-Offers
When you resign, your current employer may counter-offer. Be cautious:
- Why didn't they pay you this before?
- Will you be first on the layoff list?
- Has trust been damaged?
- Are the underlying issues (growth, culture, projects) actually addressed?
Statistics suggest 80% of people who accept counter-offers leave within 18 months. The reasons for leaving usually remain.
Special Situations
Competing Offers
Having multiple offers dramatically increases leverage. Use them strategically:
"I have an offer from [Company] at $X TC. I prefer your opportunity because [specific reasons], but I need to make this work financially. Can we discuss getting closer to $X?"
Rules:
- Only mention real offers
- Be specific about the number
- Explain why you prefer this company (not just about money)
- Give them a clear target
Startup Equity
Startup equity requires different evaluation:
Questions to ask:
- What's the current 409A valuation?
- How many total shares outstanding?
- What percentage of the company does my grant represent?
- What's the strike price?
- What's the vesting schedule and cliff?
- What happens to my equity if the company is acquired?
- What's the current runway/last funding round?
Evaluation framework:
Your shares: 10,000
Total outstanding: 10,000,000
Your ownership: 0.1%
Last valuation: $100M
Your theoretical value: $100,000
But consider:
- Dilution from future rounds
- Liquidation preferences
- Probability of exit
- Time to exit
For early-stage startups, treat equity as lottery tickets with potential upside—not as guaranteed compensation.
Big Tech vs. Startup Tradeoffs
| Factor | Big Tech | Startup |
|---|---|---|
| Base salary | Higher ($150-250K+) | Lower ($120-180K) |
| Equity | RSUs, liquid | Options, illiquid |
| Certainty | High | Low |
| Upside | Limited | Potentially huge |
| Growth | Structured levels | Faster, less defined |
Neither is universally better. Know what you're optimizing for.
After You Negotiate
Getting It in Writing
Once you've agreed verbally, ask for an updated offer letter reflecting all changes:
"Thank you for working with me on this. Could you send an updated offer letter with the revised compensation so I can sign and return it?"
Don't give notice at your current job until you have signed paperwork.
Declining Gracefully
If you decline an offer, be professional:
"Thank you so much for the offer and the time everyone spent with me during the interview process. After careful consideration, I've decided to accept another opportunity that's a better fit for my career goals right now. I really appreciated learning about [Company] and hope our paths cross again."
Leave doors open. The hiring manager might be at your dream company in two years.
Quick Reference
Before the offer:
- Research Levels.fyi, Glassdoor, Blind
- Know your target TC and walkaway number
- Never share current salary
When you get the offer:
- Don't accept immediately
- Calculate total compensation
- Take 24-48 hours minimum
In negotiation:
- Be specific with numbers
- Show enthusiasm for the role
- Negotiate multiple components
- Stay professional
After agreement:
- Get everything in writing
- Don't give notice until you have signed paperwork
Related Articles
If you found this helpful, check out these related guides:
- Complete Technical Interview Career Guide - comprehensive preparation guide for the entire interview process
- Technical Interview 2026: What to Expect - What happens at each stage of modern tech interviews
- Soft Skills Technical Interview Guide - Communication skills that help in negotiation too
Final Thought
Negotiation is a skill. Like any skill, it improves with practice.
The first time feels awkward. By the third or fourth job change, it becomes routine. The money you leave on the table early in your career compounds—both in immediate income and in future negotiations anchored to your current salary.
Ask for what you're worth. The worst they can say is no.
