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Totally Honest Software Engineering Negotiations

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Re: Totally Honest Software Engineering Negotiations

#3
Yep, this is what you have to do. I know a guy, smart developer, not even a college graduate who had dropped out of community college, who clawed his way from 60k to 150 in less than 6 years using similar tactics. You need a decent safety net, brass balls, and willingness to actually walk away of it doesn't go your way.

Re: Totally Honest Software Engineering Negotiations

#4
This is an admirable display of tactics, but a poor general strategy. His repeated threats to leave, as well as lies about other offers, only worked because the company in question was already struggling and needed to hold onto him for fear of not finding a replacement. A more prominent and successful company would have jettisoned him as soon as it found a qualified and, in all probability, more loyal applicant.

However, the advice on initial negotiations is solid. Companies generally allow at least 15% headroom on their initial offer for negotiations, and potentially more for those with less industry recognition and thus less negotiating power. I've exploited this headroom in virtually every job I've gotten.

Re: Totally Honest Software Engineering Negotiations

#5
This article is about salary negotiations, not software-engineering negotiations.

I was hoping this would be about negotiating feature sets and timelines, which would actually be relevant to the set of people working on software (rather than being relevant to the set of people trying to make money; of course there is overlap).

Re: Totally Honest Software Engineering Negotiations

#6
I would recommend a small variation of this technique in order to maintain good working relationships with your manager/employer.

Start with a conversation explaining why you believe you should be better compensated, highlighting the value you add to the company, rarity of your skills, market rates, etc.

If the request is rejected, or the increase offered is inadequate, then find an offer at another employer and use this to negotiate (or simply accept the offer and move on).

This approach shows good will, in that you gave your employer an opportunity to make things right before escalating to a threat of leaving.

Re: Totally Honest Software Engineering Negotiations

#7
Two things:

I went back to my original employer and said I had a new job offer for $70k, and I didn't want to negotiate, I just wanted their final, last ditch offer

That's an incredibly awesome way to have a huge target painted on your back. A lot of employers get really pissed at this tactic but won't say so to your face. They will gladly give you that new salary for just enough time to get a (cheaper) replacement on board. Then your salary is changed to $0.00.

I found a solid startup, _one_I_would_actually_work_at_, and tell them I make $100k (a lie, I added $20k to my current salary).

Welcome to the 2010s, where credit bureaus now run additional services for employers and HR departments. My company regularly uses The Work Number from Equifax. I pulled up my report and it has my salary history for the last 20 years on it. Perhaps working for small startups that can't afford this service will let you fly under the radar when it comes to bluffing about salary history (and don't get me wrong, I'm all for not letting your next employer know what you were making before), but you gotta tread lightly here.

https://www.theworknumber.com/

My opinion is that one should tell the new employer what it would take to make you jump, and that's it. If they can't make that number then you have your answer. That, or they need to make up the delta in other ways.

Re: Totally Honest Software Engineering Negotiations

#8
post #4

This is an admirable display of tactics, but a poor general strategy. His repeated threats to leave, as well as lies about other offers, only worked because the company in question was already struggling and needed to hold onto him for fear of not finding a replacement. A more prominent and successful company would have jettisoned him as soon as it found a qualified and, in all probability, more loyal applicant. Howe…

> A more prominent and successful company would have jettisoned him as soon as it found a qualified and, in all probability, more loyal applicant.

Even a successful company needs good engineers. They don't fire people just because they're "not loyal". Sure that medium sized company might want to replace you with a cheaper more "loyal" version, but what is their capability to do so? Beyond loyalty is dollars and cents.

I would say it's a solid tactic assuming the developer would actually go and work at those other companies. Worst case scenario of this tactic is that you tell them you've got a better offer and they tell you to go take it. Even then, you could likely backtrack and explain how in your heart of hearts you decided it wasn't the move you wanted to make. Unless you're underperforming in some other area, I've not met a software company that can afford to toss out good engineers.

Re: Totally Honest Software Engineering Negotiations

#10
Management, negotiations, and money are only for the Gordon Gekkos' of the world. Mind you, I'm humpin on 40 and have had my own stint as an IT manager at a start-up (VERY successful one, actually) and stepped up to bat as a Director of IT several years back - feeling cocky just as you have in your ability to rise to the challenge. However, leadership rarely burdens the young and I mean My next thought is around the belief that money / drive combinations can lead to happiness. Ya, ya .. lil bit softer end of the stick, but drive to go from $46-150K in a short period is one thing, but having a family / life / opposite experience of work is less about how much you make, but making the balance.

I do well, and I live in a depressed market of the US (rust-belt city), and I have a high-earning wife w/ no kids. Needless to say, my life is fantastic. I am not going to die at 45 from stress, either.

So balance will be the longevity, and understanding how you want to "grow" in your field is the other. It's great being ambitious, but just remember - the higher you go, the lonelier it gets.

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