Money is always a difficult subject to discuss. So much so that many people shy away from the conversation altogether. It’s certainly more comfortable to indefinitely postpone uncomfortable financial matters when speaking with your parents, friends, and significant others.
However, don’t avoid the topic with your current and future employers!
Failure to negotiate the salary you desire, require, or deserve can leave you feeling bitter even before you start your new role. And, not getting a pay increase after a significant amount of time is not good for anyone, either, be it your social circle, your coworkers, or yourself.
Salary negotiation is not just something that happens before joining a company. It’s a subject that is always lurking, but rarely welcomed. At least that’s how it can feel.
Many companies take the subject off the table during performance reviews and appraisals. When a software developer has only these fleeting opportunities to talk with those who control the purse strings, it can leave the employee feeling stranded. And, if you’re a remote employee, that feeling only intensifies.
It may seem to you that the only way to bring up the subject is to walk into their office and make some demands. But, because this approach can feel too direct, many developers never bring up the topic at all.
There has to be another way, right?
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Salary Negotiation at the Interview Stage (Pre-Hire)
Firstly, let’s handle the salary negotiation at the interview stage.
It’s important to have your numbers ready and also to be ready to negotiate. Note that I didn’t say “stand firm,” because there needs to be room to negotiate on both sides.
Know your numbers, and prepare to be low-balled. Have a strategy in mind. Know where your personal cut-off point resides and how to handle offers below this level.
It doesn’t have to end with a “no” and no further discussion. Explaining that the salary rate they’re offering simply doesn’t work for you leaves them with an opportunity for further investigation and discussion. If the interviewer ends proceedings at this point, then you should consider that you may have dodged a bullet. But, if they continue, then they want you and it’s time to negotiate!
The second point to consider is whether you will start by stating the salary you desire or waiting for them to make an offer?
I would encourage you to research “anchoring.” The first person to say a number creates the anchor, and all negotiation flows from this point. Be the person to drop the anchor. State your desired salary, and then expect them to negotiate from there.
The value in being the one to drop the anchor is that you’ve set where the bar is, and all further conversations will operate around this number. Any lower offer is an attempt to re-anchor, and it’s up to you how far you deviate from your original anchor point. A key point here is not to be too emotional. If their low offer is far below yours, then it’s probably not meant to be. Knowing your strategy beforehand will prevent you from accepting or considering a salary package you had previously deemed unacceptable. People make crazy decisions in a stressful environment.
However, if their anchor is not all that far from where you were hoping, then it’s negotiation time. This portion of the interview, along with everything you say from this point, is not about the money you’ll receive but rather the value you’ll deliver.
Why are you worth that amount? Market rates and potential offers from third parties are the usual responses delivered at this point, but I encourage you to think differently. If you’re at the stage of talking money, particularly if you’re entering into negotiations, then they want you. It’s time to consider if you want the job. And, if so, how badly?
If you really want the job, consider lowering your rate closer to the rate on offer. Alternatively, you can say things like, “I’ve really liked everything I’ve heard today. It sounds like a great team and a great project, and I feel I can add a lot of value by …” This is where you insert the evidence of your experience that adds value to this project and this company. All that remains is this tiny, insignificant hurdle of money. Keep in mind: what may seem a large financial gap to you is probably not a lot to a company, especially if they’re wanting to start a long-term relationship with you.
Remember to stick to your truths: you are the right person for the job, you’ll fit in well on the team, and the company and future projects benefit by hiring you.
Finally, consider that money isn’t the only way to negotiate. If money is a blocker for them, perhaps trade it for time? For example, you could see if working fewer days per week, reduced hours each day, or getting extra time off are an option, instead. Also, if tuition reimbursement or professional development opportunities appeal to you, consider whether that would make up the difference between your two numbers. If so, ask.
At the end of the day, there are no rules here — all that’s important is that you and the company feel satisfied with your choices.
Read More: Here are the Most Common Behavioral Interview Questions Asked by Top Tech Companies
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Negotiating a Salary Increase (Current Employees)
Now let’s turn to the scenario where you already work for the company, and you feel you need or deserve a pay raise. Confidence is key here. Money is a subject you might rarely discuss, but to the head of engineering or hiring manager, it’s a regular topic.
Don’t be shy about bringing up this subject with them, as their respective job titles ensure they’re prepared. Request a meeting to discuss your position, and prepare yourself.
When you first joined the company, you agreed on a fee for certain services. If you simply want more money for those services, over and above inflation, that’s going to be a hard sell. Unfortunately, this is how most people request pay increases and the reason they get met with a wall.
Why pay more for the same thing, right?
When negotiating salary, your focus instead is to demonstrate how you are a different person. More skills, more experience. Explain how you’ve honed your craft and have been working to add value to the business.
If you can demonstrate the value you have brought to the team that came from skills you didn’t have when you were hired, such as knowledge of new languages, frameworks, or tools, then you’re proving additional value.
It’s much harder for someone to argue that they don’t want to pay more for additional value!
Add some icing on the cake by showing them where you’re headed. You’re not idling and waiting for things to change. You’re actively learning new skills and creatively trying to add value to benefit this company. That’s a much stronger position to negotiate from!
Read More: What’s the Difference Between a Phone Screening and Interview?
Tips for Negotiating Salary as a Remote Developer
Many people are new to remote work since the pandemic, and with that change comes many new experiences. If you’re in the running for a remote position, it can feel a little awkward going into a salary negotiation with someone you’ve never met in person. But, many of the same rules still apply.
Negotiating a salary for a remote position can be a little tricky. For one, you may be dealing with different costs of living depending on where you are and where the company is based. Then there’s the added complexity of negotiating via Zoom or another video platform. Sometimes just getting to the counteroffer is half the battle!
Whether you’ve been working remotely for ages or are new to the remote hiring process, here are some things to keep in mind as you negotiate a salary for a remote position.
1. Know what the market rate is
There are a few variables that hiring managers consider when extending a salary offer. Market rate is one of them — how much are other companies paying for that same position? Know what the average base salary is for the position and for the level of experience.
Another factor that a hiring manager will consider is location. Try to find out both the global and local market rates to see what’s appropriate for the company to offer. A great tool to help you learn more is Arc’s Remote Software Developer salary estimator.
Even though you are working remotely, it’s possible that your salary will be impacted by where the company is based. You may have to adjust your salary expectations or look elsewhere if your prospective new job is based somewhere where the cost of living is lower than where you live.
If you’re not sure how much is “fair”, talk to others in your industry or network on LinkedIn to see if you can get some feedback on how much to ask for. It’s also worthwhile to see if you can find what kind of pay structure/system the company uses, in case it’s publicly available (e.g., local pay, global pay, pay calculator).
2. Ask for a range
Ideally, you will have a sense of what the company can offer you before you name your salary expectations. However, some hiring managers ask for salary expectations very early in the hiring process. If this happens, try to avoid naming a hard number: you could be underselling your talent.
Give a range instead. The minimum should be an amount you can’t afford to go below, and the maximum should be what you’d ideally like to earn. This gives the recruiter some idea of your goals while keeping the negotiation open.
3. Work on your “e-charisma”
E-charisma is a term popularized by the Wall Street Journal to describe how effectively (and convincingly) a person communicates through a video platform.
“In face-to-face meetings, physical charisma often goes a long way in helping someone get noticed and advance in their career. More reserved or shy types are often at a disadvantage. But physical charisma can be more challenging to replicate online—creating a potentially different pecking order,” wrote WSJ.
Why does e-charisma matter in a salary negotiation? Some researchers were able to predict how much a candidate would be offered during salary negotiations based solely on their charisma. The ability to showcase your soft skills remotely plays an important role in your salary negotiation.
Show that you’re a good listener, clear communicator, and team player by expressing empathy and working constructively with the recruiter to arrive at a salary that’s right for both parties.
4. Know how to offer a counter salary
A recruiter may make an initial offer with a salary that’s lower than you would have liked. In this scenario, don’t panic! Come in with a number that you would be happy with while keeping in mind the constraints of the company. A startup, for instance, won’t have the same ability to offer a high base salary as Google. But, they may be able to offer you other benefits, like flex time off, tuition reimbursement, or professional development opportunities.
When you make your counteroffer, be prepared to explain why you’re asking for the amount. Speak to your experience in your field and your ability to work independently (critical for a remote position). Refer to market rates and, if applicable, the cost of living in your area. You can point to a previous salary if it’s a helpful benchmark, but each company is different and it may not be useful if the new company simply doesn’t have the same resources.
One last word of advice: when negotiating a salary for a remote position, be clear and confident in the way you communicate. Avoid ultimatums and exuding an air of entitlement, instead being firm but professional and polite.
Stick to using plural pronouns, focus on how you can add value to the company, and don’t play games. Recruiters are aware that you will be interviewing at multiple companies, and they need to trust that you’re not using them to leverage a higher offer elsewhere.
Wrapping Up: How to Negotiate Salary as a Remote Developer
At the end of the day, money should not be the taboo subject it seems to be for many. We need to be more open about it and enter into more negotiations. To summarize my points:
Prepare
- What do you want?
- What is your lower limit?
- How will you handle a low offer?
- What happens if you don’t get what you want?
Negotiate
- Leave room for both parties to negotiate. Do not demand things.
Add Value
- Why are you worth the money?
- How have you added value?
- How will you add value in the future?
Decisions are not always made whilst both parties are in the room. Expect to let the information marinate, and don’t burn any bridges. Instead, have an adult conversation, and, hopefully, an exciting negotiation!
Read More: Common Remote Software Developer Interview Mistakes
Find your dream remote job faster with Arc.
- Development, design, and marketing roles
- US-based startups and tech companies
- Choose freelance or full-time remote work
Work from anywhere in the world on your terms.
Join Arc now →
