Consider Common Misconceptions

Many individuals worry about whether they might financially burden the company by asking for more. In reality, a few thousand dollars is a minor expense in a company's budget. Others fear that requesting a higher salary could raise expectations or lead to harsher judgments from employers. However, it's important to understand that employer satisfaction is binary; they either value your contributions or they do not. Once hired, your pay is unlikely to affect their assessment of your performance.

Another concern is the potential strain on your relationship with your employer. It's perfectly normal for salary discussions to become intense. Both parties are aiming to optimize their outcomes while maintaining respect. Numerous negotiations have reached heated moments, only for relationships to stabilize once discussions conclude. However, if an employer resorts to personal attacks or inappropriate questions, it may indicate a toxic workplace, and you might want to reconsider your interest in the position.

Is the Company Open to Negotiation?

While some companies may resist negotiation, there’s no harm in asking.

The Importance of Written Offers

It's essential to wait for a written offer. Candidates often misinterpret a recruiter's enthusiastic comments, such as "you seem like a great fit," as a formal offer. An actual offer only materializes in writing. Be cautious, as sometimes verbal discussions can differ significantly from the final written terms, particularly for international students or contract workers.

When you receive a verbal offer, respond positively by saying you look forward to reviewing the details with mentors or friends.

Leverage Your Current Offer

Don't settle for your initial offer; it can be a valuable bargaining chip. For example, if you already have an offer, consider applying to 30 more companies and mentioning your existing offer while expressing genuine interest in theirs. This creates a sense of urgency and may accelerate their decision-making process.

Salary Expectations

When evaluating offers, understand the market norms:

• A salary should generally start at $90k or higher.
• Salaries below $60k are uncommon.
• A range of $60k-$80k typically reflects early-stage startups.

Equity Considerations

As an early employee, you may receive more equity due to the higher risk involved. Familiarize yourself with the company's valuation, your equity percentage, and the details of your equity (options versus shares, vesting schedule, etc.). Be cautious; many companies' equity may not hold significant value.

Be Aware of Bonuses and Tax Implications

Beware of companies offering large bonuses in lieu of a lower salary. Calculate the long-term impact of bonuses versus base salary.

Understanding Employment Types

Differentiate between being an employee and a contractor:

• Employees typically receive regular paychecks, benefits, and job security.
• Contractors often have more flexible arrangements but must manage their own taxes and benefits.

Negotiation Techniques for Engineers

Utilize platforms like Payscale.com and Glassdoor.com to research typical salaries for your role. Understand how your previous salary will influence your negotiation leverage.

Keep Track of All Documentation

Maintaining accurate records of your offers and agreements is critical. Familiarize yourself with confidentiality and non-compete agreements, as these can vary by state.