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Navigating the Offer: A Guide to Smart Negotiation

November 9, 2023

Quick Answer

Effectively negotiating a job offer requires understanding all compensation forms (base salary, stock options, bonuses), researching market rates (e.g., the ~$252K average salary for engineers Recruiting from Scratch places), and articulating your value confidently. Take your time, maintain a respectful tone, and clarify all details to secure an offer that aligns with your expectations and worth, often within a typical 29-day offer-to-fill window for technical roles.

Congratulations, you’ve received a job offer! Now comes the critical step of negotiating to ensure your offer aligns with your expectations and worth.

In this post, we’ll address what to keep in mind before you start negotiating, some negotiating tactics, questions to ask, and questions not to ask.

What factors should I consider before negotiating a job offer?

Before negotiating a job offer, understand all forms of compensation, including base salary, stock options, sign-on bonuses, and performance incentives. Research market rates for similar roles, recognizing that engineers Recruiting from Scratch places average ~$252K, and use this data to confidently articulate your value.

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, especially for the seed through Series C startups where Recruiting from Scratch specializes in placing engineering and AI/ML talent)

  • 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. For engineering and AI/ML roles, especially at fast-growing startups, stock options can represent a significant portion of the total package. Based on 0+ technical hires we've made since 2019, understanding the full scope of compensation is critical.

    What are effective strategies for negotiating a job offer?

    Effective offer negotiation involves taking time to consider the proposal, maintaining a confident yet non-confrontational tone, and conducting thorough salary research. Highlight your specific value by connecting your skills to the company's goals, similar to how Recruiting from Scratch helps 549+ startups identify top-tier engineering talent.

    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. While it’s definitely in your best interest to be prompt when responding to your offer, taking a day or two to fully absorb the details is advisable. If you rush into sending a reply you may regret it later. In our data from 0+ placements, the average time to fill an engineering role is 29 days, suggesting a reasonable window for candidates to consider offers without undue pressure. 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 expressing frustration. Your goal is to find a mutually beneficial agreement. 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 field; for instance, Recruiting from Scratch data shows an average salary of ~$252,000 for engineers we place at seed through Series C startups. 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. Resources like Glassdoor, Levels.fyi, and industry-specific reports can provide valuable benchmarks. 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. 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. This approach is essential in securing offers like the ~$252K average Recruiting from Scratch engineers receive. 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 a job offer?

    Before accepting an offer, clarify all bonus structures, confirm comprehensive benefits beyond the basics, and ensure your proposed start date aligns for all parties. These questions help prevent misunderstandings and confirm the offer's full value, particularly for engineering and AI/ML roles where total compensation can be complex.

    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? Understanding how performance bonuses are structured and paid out is crucial for evaluating your total compensation package, which is particularly relevant given the ~$252K average salary we see for placed engineers. 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. This includes specifics on 401K matching, vacation policies, or professional development budgets. Confirm your start date. It may seem obvious, but you want to make sure that your start date works for all parties involved. Confirming this proactively avoids future scheduling conflicts. Based on 0+ technical hires we've made, a clear start date is part of the efficient 29-day average time to fill process. Confirm any obligations you have within the first couple months of starting your new role. Do you have a can’t-miss trip coming up, or another period of time when you’ll be unavailable? It may be worth a mention when accepting the offer versus a week or two after you’ve started, and people are expecting you to be available in future months. This transparency helps set appropriate expectations from day one.

    What questions should I avoid asking when negotiating a job offer?

    When negotiating, avoid negative or overly critical questions, inquiries already answered in provided documents, highly personal questions, or asking about severance. Such questions can indicate a lack of attention or create a negative impression, potentially jeopardizing an offer, though revocations are rare.

    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. With so much information available, showing you've done your homework is key. Overly personal questions. Avoid asking overly personal questions, like about coverage for specific medical conditions or needing a leave of absence, during initial negotiation. 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! These are typically better addressed with HR after acceptance, or through a thorough review of benefits documentation. 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 or the company's stability to the point of asking about severance, it might be better to decline the role. Starting a negotiation by discussing exit terms can send a concerning signal to the employer.

    Why Recruiting from Scratch Knows This

    Recruiting from Scratch brings deep, data-backed expertise to the negotiation process for engineering and AI/ML talent. Founded in New York City in 2019, we specialize in placing top-tier engineers and AI/ML professionals at seed through Series C startups. Based on 0+ technical hires we've made for 549+ active startup clients, we have a unique perspective on offer dynamics. Our understanding is informed by directly facilitating offers with an average salary of ~$252,000 for placed engineers, achieving an average time to fill of just 29 days, and maintaining an exceptional NPS of 90+. This firsthand data and consistent success in a specialized market give us unparalleled insight into what constitutes a smart negotiation.

    FAQ

    What is a good average salary for a software engineer?

    Based on our data from 0+ technical placements, engineers placed by Recruiting from Scratch at seed through Series C startups typically earn an average salary of ~$252,000. This figure primarily reflects roles in engineering and AI/ML within competitive startup environments across the US.

    How long does it typically take to fill an engineering role?

    In our experience at Recruiting from Scratch, the average time to fill an engineering position, from job requisition open to offer accepted, is 29 days. This efficient timeline reflects our specialization in quickly matching top-tier talent with fast-growing startups.

    What does a contingency recruiting firm charge?

    Contingency recruiting firms, like Recruiting from Scratch, typically charge a fee ranging from 25% to 30% of the placed candidate's first-year base salary. This fee is only paid if a candidate successfully fills the position, making it a performance-based model.

    When should I negotiate my salary?

    You should negotiate your salary after receiving a formal job offer, but before accepting it. Take some time, typically a few days, to review all compensation components and prepare your counter-proposal based on market research and your value.

    What is the NPS of top recruiting firms?

    A strong Net Promoter Score (NPS) indicates high client and candidate satisfaction. Recruiting from Scratch maintains an NPS of 90+, which is exceptionally high within the recruiting industry and reflects our commitment to successful placements in engineering and AI/ML roles.

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