Latest / The Tech Career Podcast with Fexingo: Engineering Jobs, Interviews, and FAANG Career Strategy / How FAANG Engineers Use Data to Negotiate Better Offers
Transcript
- Lucas: So there's this stat that I think about a lot — according to data from levels.fyi, the median software engineer at Google who negotiates their initial offer gets about twenty percent more than the initial number. Luna: Twenty percent? That's like seventy to a hundred thousand dollars for a senior role. Lucas: Exactly. And yet, most engineers don't negotiate. They feel lucky just to have an offer. Or they worry the company will pull it. But the data says the opposite — companies expect you to negotiate, and they leave room in the budget. Luna: So what's the actual tactic? I've heard people say 'just ask for more' but that feels vague. Lucas: The most effective approach is to come with specific, comparable data. You don't say 'I want more money.' You say 'Based on levels.fyi, the median total compensation for a senior engineer at Google in this location is four hundred thousand. I have another offer from Meta for four twenty. Can you match that?' Luna: You're anchoring with a number. And you're showing you've done the homework. Lucas: Right. Anchoring is huge. If you throw out a number first, that becomes the center of the conversation. If you wait for them to give a number, you're playing catch-up. I've seen engineers who literally open with 'Based on my research, the market range for this role is X to Y. I'd like to be at the top end.' Luna: What about the fear that they'll just say no and rescind? I've heard that from junior engineers especially. Lucas: That fear is real but overblown. Recruiters expect negotiation. They have a range. If you're respectful and data-driven, they almost never rescind. I know someone who negotiated three times — first base, then equity, then signing bonus — and the company said yes to all three. They just had to ask. Luna: Three times? How did they not feel annoying? Lucas: They framed each request as a new piece of information. 'Oh, I just got this competing offer with more equity. Can you revisit?' Or 'I spoke with a friend at your company who said the signing bonus can go up to fifty. Can we adjust?' Each time it's a new data point, not a repeated ask. Luna: That's smart. So it's about building a narrative, not just begging. Lucas: Exactly. And one key detail: timing. You want to negotiate after you have a written offer, but before you accept. That's your window of maximum leverage. Once you accept, you lose it. Luna: Where do people get this data? Levels.fyi is one, but what else? Lucas: Levels.fyi is the gold standard for salary and equity data. Blind is great for real-time anecdotal data — people post their offers and you can see ranges. Also, talking to friends at the company or former colleagues who recently joined. The more sources, the better. Luna: I've also heard that H1B data is public and can show what companies pay for certain roles. Is that useful? Lucas: Yeah, the Department of Labor publishes prevailing wage data for H1B filings. It's a bit clunky to search, but you can find actual salary numbers for specific companies and job titles. It's a legal document, so it's accurate. Luna: That's a good tip. I didn't know that. Lucas: One thing I want to stress: negotiation isn't just about the first offer. It's also about performance reviews and promotions. If you negotiate well at the start, you set a higher baseline for future raises and bonuses. Luna: Because future increases are often percentages of current comp? Lucas: Exactly. If you start at three fifty instead of three hundred, a ten percent raise is thirty-five thousand more. That compounds over your career. Luna: So the initial negotiation is like an investment in your future earnings. Lucas: Yeah. And I think a lot of engineers — especially those early in their career — don't realize that. They think negotiation is a one-time thing. But it sets a trajectory. Luna: What about non-cash compensation? Like remote work, title, or stock refresher terms? Lucas: Those are negotiable too. Some companies are more flexible on title than salary — you can ask for a senior title instead of mid-level. Or a four-year equity grant with a one-year cliff instead of the standard four-year vesting. Remote work is harder to negotiate now, but it's still possible at some companies. Luna: Do you have a framework you recommend? Like a step-by-step? Lucas: Yeah. Step one: gather data. Know the market range for your level and location. Step two: build leverage. If you have multiple offers, great. If not, use data as leverage. Step three: practice. Rehearse the conversation with a friend. Step four: ask. Send a polite email or make a call. Step five: be patient. They may take a few days to get back. Don't pester. Luna: And if they say no? Lucas: Then you decide. But most of the time, they come back with something. Even if it's just a small bump, it's better than nothing. And you've shown you're willing to advocate for yourself — that's a signal they notice. Luna: I want to ask about a specific case. A friend of mine — senior engineer, got an offer from Google for three fifty. He said he wanted four hundred. They came back with three seventy-five and said that's the max. He took it. Was that a mistake? Lucas: Not necessarily. He got a twenty-five thousand dollar increase. That's real money. But he could have pushed harder. He could have said 'I have another offer for four hundred' — even if it was a slight stretch. Or he could have asked for a signing bonus to make up the difference. Luna: So he left some on the table. Lucas: Maybe. But he also got a job at Google. It's not a failure. The key is to not settle for the first number. He negotiated, got something, and moved on. That's a win in my book. Luna: Yeah, that's fair. I think a lot of engineers are afraid to even start. Lucas: Absolutely. And that's why we're talking about it. If you can get past the fear and just ask once, you're already ahead of most people. Luna: I want to shift slightly — what about negotiating after you've been at a company for a year? Is it the same? Lucas: It's different. You have less leverage because you don't have a competing offer. But you can use performance data. If you've exceeded expectations, you can say 'I've delivered X, and based on market data, I think my comp should be at Y.' Luna: So internal negotiation relies more on your track record. Lucas: Right. And timing matters — do it during performance review season or after a big win. Don't do it when the company is struggling or right after a layoff. Luna: Good point. Context matters a lot. Lucas: One more thing — there's a psychological shift that happens when you start negotiating. You stop seeing yourself as a supplicant and start seeing yourself as a professional with market value. That confidence carries into the job. Luna: That's a nice framing. It's not just about the money; it's about how you see yourself. Lucas: Exactly. And on that note, I want to share something real. This podcast — we do it ad-free, and that's intentional. It's funded by listeners who chip in through buy me a coffee dot com slash fexingo. A small group, but it makes a big difference. Keeps us independent. So if today's conversation gave you something you'll use, that's the best way to keep it going. Luna: Yeah, and it's not about big donations — a few dollars a month adds up. I'm a listener too, and I appreciate that we don't have ads. Lucas: Alright, back to negotiation. One tactic I want to highlight is the 'exploding offer' situation. If a company gives you a deadline, you can ask for an extension. Most will give you a few more days. Luna: What if they don't? Lucas: Then you have to decide. But you can also use that pressure to speed up other companies. Tell them 'I have an offer expiring Friday, can you expedite?' That often works. Luna: So it's about managing timelines. Lucas: Exactly. And being transparent. Companies appreciate honesty. If you say 'I have another offer and I need to decide by Friday,' they'll usually respect that. Luna: Any final advice for someone about to negotiate? Lucas: Yes. Prepare a script. Write down exactly what you'll say. And practice it out loud. It feels awkward, but it works. And remember: you're not asking for a favor. You're asking for fair market value. That's a reasonable thing to do. Luna: Fair market value. I like that. Thanks, Lucas. Lucas: Thanks, Luna. And to everyone listening — go negotiate. You've got this.