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Negotiating your Offer

November 21, 2023

Quick Answer

Negotiating a job offer effectively involves understanding all compensation components, conducting thorough market research (e.g., ~$252K average salary for RFS-placed engineers), and confidently articulating your value. Take time to evaluate the full offer, clarify all benefits, and highlight specific achievements that align with company goals before accepting.

Congrats - you’ve made it through all the stages of the interview process!

What should I do after my final interview?

Send a short, thoughtful follow-up email to your interviewers. Reiterate your appreciation for their time and mention specific skills that align with the role, focusing on company benefit. This reinforces your interest and reminds them of your qualifications.

* What to say: Craft thoughtful, but short follow-up messages. Mention that you appreciated their time meeting with you and you look forward to hearing about next steps.
If you want, you can mention a couple specific things that came up during the interview: Remind the interviewers of a few key bullet points about you and why you’d be a great fit for the role. Remember - keep this about how the company can benefit from your skillset, not why the role is a great fit for you* personally.

Now, let’s say you receive a call or an email letting you know you have an offer - congrats! Here’s a few things you want to understand before you start negotiating:

How does equity compensation work?

Equity compensation, often presented as Restricted Stock Units (RSUs), typically vests over a few years after an initial 1-year cliff. It's a key component of startup offers, especially in early-stage companies, where it can significantly contribute to overall compensation alongside a base salary that averages ~$252K for engineers placed by Recruiting from Scratch. Often, equity is presented to employees as RSUs. An RSU, or Rested Stock Unit*, refers to units of stock an employee receives the right to purchase after a certain period of time. Typically, an employee must remain at a company for a year (known as a cliff) before accessing the right to any stock options. After that, stock units “vest” - meaning, over time, an employee is able to access more and more of their options. Most vesting schedules last a few years, and often equity is vested on a monthly basis. * The number of RSUs an employee is granted can vary depending on role, years of experience, or company size. Joining an earlier stage seed company can often mean more options than joining a company that’s raised many more rounds of funding. This is common across the 549+ startups we work with. * Additionally - some employers offer candidates options like higher cash compensation with fewer stock units, or lower compensation with higher stock units. Understanding how your equity works during the interview process, and definitely before you accept an offer, will help you make sure you accept an offer that’s right for you. * Check out General Assembly’s guide for more info on startup compensation.

What other benefits should I consider in a job offer?

Beyond base salary and equity, many startups offer additional benefits like equipment stipends, travel allowances, or fitness subsidies. These unique perks, often based on employee feedback, can significantly enhance your overall compensation package and are important to clarify before accepting an offer.

* Startups often offer additional benefits beyond healthcare and PTO, that are frequently unique and based on employee feedback. Computer or work-from-home equipment, travel stipends, fitness stipends, financial wellness, free or discounted products depending on their business are some examples.
* Candidates often find these types of benefits more useful than traditional benefits. Regarding PTO, many startups offer unlimited time off so employees can take personal time as needed - with some even starting to require time off so employees aren’t afraid to take vacations while the rest of their team is working.

What should I know before negotiating a job offer?

Before negotiating an offer, understand all components: base compensation (averaging ~$252K for engineers placed by RFS), stock options, sign-on bonuses, and performance bonuses. A clear understanding ensures you evaluate the full value of the offer, not just the salary figure.

Before you start to negotiate a job offer, there are a few main forms of compensation you should be aware of. These include:
* Base Compensation (this is often your salary)
* Stock Options (common in the case of startups)
* Sign-on Bonus
* Other bonuses, for example, performance bonuses (more on this in a bit!)

Before you start to negotiate, make sure you understand all the compensation types presented in your offer. You may find that you’re happy with your offer and it meets your expectations if you consider all the additional forms of compensation that come in addition to your base, as well as the bonus structure.

How do I negotiate a job offer effectively?

To negotiate effectively, take your time, maintain a confident (not confrontational) tone, and conduct thorough salary research, including for non-salary compensation like equity. Highlight your specific value and achievements, connecting them directly to the company's goals to justify your requests.

If you want to negotiate an offer, consider the following tips when beginning your negotiation:

Don’t rush. Take your time in considering the offer, and don’t feel like you need to send off an email right away. It’s definitely in your best interest to be prompt when responding to your offer - but if you rush into sending a reply you may regret it later. Be confident, not confrontational. Avoid using phrases that sound confrontational or demanding. Even if your offer is much lower than expected - don’t spend time dwelling on your disappointment, or express frustration. Do your research. You’ve likely already done this, but always research salary ranges in advance. You want to understand how professionals are paid in your area; for example, Recruiting from Scratch sees an average salary of ~$252K for placed engineers. Non-salary compensation - like stock options and equity - are especially important here. If your offer is with a startup, you’ll need to keep in mind that your total compensation comes in these other forms, which is often the case across the 549+ startups we work with. Highlight your value. Emphasize your achievements and skills and how these align with company goals if you want higher compensation. Remember, in order to find the appropriate offer amount, recruiters take into account years of experience, role scope, education, and how successful they think a candidate will be in the new role. Based on 0+ technical hires we've made since 2019, emphasizing your specific contributions significantly strengthens your position. When asking for higher compensation, highlight what you’ll bring to your new company and connect this to how you’ll help the company reach their goals. Think of specific responsibilities that came up during your interview, and highlight how your specific skills will help the company more so than other candidates. Want some good resources for negotiation? Check out this cheat sheet from Never Split the Difference by Chris Voss, and how LinkedIn’s Head of Recruiting approaches salary negotiations, from the perspective of a recruiter.

What questions should I ask before accepting an offer?

Before accepting, clarify details on bonuses (e.g., percentage of base), confirm all benefits (beyond healthcare and retirement), and finalize your start date and any initial obligations. This ensures full transparency and alignment before committing.

If you’re still unclear about certain aspects of your offer - definitely ask some questions about this! Some questions we often see candidates ask include:

Details on bonuses if this is part of your offer. For example, you may want to ask - are bonuses in a third category of compensations or are they lumped in with stock options or base? What percentage of base salary are bonuses? Confirming the rest of your benefits. What benefits are offered in addition to healthcare, retirement plans, or other perks? Throughout the interview process, it’s likely that you’ve covered the basics of benefits - but if there’s other benefits that need explanation, asking during the negotiation stage is a great time. Confirm your start date. It may seem obvious, but you want to make sure that your start date works for all parties involved. Confirm any obligations you have within the first couple months of starting your new role. Do you have a can’t-miss trip coming out, or another period of time when you’ll be unavailable? It may be worth a mention when accepting the offer vs. a week or two after you’ve started - and people are expecting you to be available in future months.

What questions should I avoid asking during offer negotiation?

Avoid negative or overly critical questions, inquiries already answered in provided documents, highly personal questions, or questions about severance. Such questions can signal a lack of attention or create an unfavorable impression during a critical stage.

While it’s rare for an offer to be revoked during the negotiation process, there are definitely some questions that are best avoided, such as:

Negative or overly critical questions. Don't inquire about past employee conflicts, controversies, or negative press - unless you can frame this constructively. For example, if the company was recently acquired and the acquisition received some negative press, it’s okay to ask if the acquisition will impact you if you believe there’s a chance it might. Remember, there’s always a way to positively frame questions so they don’t come across as critical - just that you’re genuinely curious! Questions that have already been answered. This may seem obvious, but avoid asking questions that are clearly addressed in the job offer, employment contract, the company’s website, or accompanying documents - especially in front of the hiring manager. This may indicate a lack of attention to detail, and that you’re not spending time seriously reviewing their offer. Overly personal questions. Avoid asking overly personal questions, like about coverage for specific medical conditions, needing a leave of absence. If you review your company’s medical benefits before you accept a role (which they should be able to provide details on) it’s likely you won’t ever need to ask the company these questions! Questions about severance or exiting a company. It’s understandable that layoffs are top of mind for many people, especially with the amount of press coverage they receive. But if you’re seriously concerned about your ability to effectively complete the tasks of your new job - decline the role.

Why Recruiting from Scratch Knows This

Recruiting from Scratch possesses deep, real-world data and expertise in compensation negotiation and talent placement. Since our founding in New York City in 2019, we have made 300+ technical placements, specializing in Engineering and AI/ML roles at seed through Series C startups. We actively work with 549+ startup clients, achieving an average time to fill of just 29 days from req open to offer accepted. Our data shows an average salary of ~$252K for placed engineers, and our high NPS of 90+ reflects our effective, data-driven approach to recruiting and advising candidates. In our data from 300+ placements, we have observed these negotiation dynamics firsthand.

FAQ

What is the average salary for a startup engineer? Based on 300+ technical placements since 2019, Recruiting from Scratch sees an average salary of ~$252K for engineers placed at seed through Series C startups. This figure can vary by role, experience, and company stage. How long does it take to fill an engineering role at a startup? Recruiting from Scratch's data indicates an average time to fill for technical roles is 29 days, from req open to offer accepted. This efficiency is crucial for fast-growing startups, especially across our 549+ active clients. What does a contingency recruiting firm charge? Contingency recruiting firms like Recruiting from Scratch typically charge a fee between 25-30% of the placed candidate's first-year base salary. This fee is paid by the client company upon successful placement. When was Recruiting from Scratch founded and what is its specialization? Recruiting from Scratch was founded in 2019 in New York City. We specialize in placing top-tier Engineering and AI/ML talent at seed through Series C startups. What is a good NPS for a recruiting firm? A Net Promoter Score (NPS) of 90+ is considered excellent for a recruiting firm, indicating very high client satisfaction and loyalty. Recruiting from Scratch maintains an NPS of 90+, reflecting our commitment to successful placements and strong client relationships.

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