How to negotiate your salary as a software engineer — a practical guide

A clear, practical tutorial focused on helping software engineers negotiate salary with confidence and evidence.

Understand Your Market Value

Start with data, not intuition. Compensation varies widely by location, experience, and specialization.

• Use sources like Levels.fyi, Glassdoor, and UK-specific data (e.g., Otta, Tech Nation reports).
• Filter by role (e.g., backend, frontend, ML), seniority, and city or remote status.
• Adjust for your profile: niche skills (e.g., distributed systems, AI), strong portfolio, or in-demand stacks increase your value.

Example: A mid-level backend engineer in the UK might see ranges from £50k-£80k, but someone with high-demand cloud expertise may push toward the top or beyond.

Research Compensation Holistically

Base salary is only one part of the picture.

• Base salary: Fixed, predictable income.
• Bonus: Performance or signing bonuses; clarify targets and guarantees.
• Equity: Stock options or RSUs; understand vesting schedules and company valuation.
• Benefits: Pension contributions, private healthcare, learning budgets, paid leave, remote flexibility.

Example: £65k base + £10k equity + 10% bonus may be stronger than a flat £70k offer depending on risk tolerance and company growth.

Build Leverage Before You Negotiate

Leverage is your strongest asset. Without it, negotiation power is limited.

• Interview with multiple companies simultaneously.
• Continue interviewing even after receiving an offer.
• Strengthen your profile: contributions, certifications, or system design knowledge.
• Be prepared to walk away.

Example: Having two offers at once allows you to negotiate each against the other without bluffing.

Timing Your Negotiation

Do not negotiate too early.

• Avoid discussing salary in initial screens; give a broad range if pressed.
• Negotiate after receiving an offer, when the company has decided they want you.
• If asked for expectations early: provide a researched range and emphasize flexibility.

Example phrase: “Based on my research and experience, I’m targeting something in the £70k-£85k range, but I’m open depending on the overall package.”

Handling Multiple Offers

Use competing offers ethically and transparently.

• Do not fabricate offers.
• Share that you are in late-stage discussions or have another offer.
• Give companies a chance to respond within a clear timeline.

Example:
Company A offers £75k. Company B is still interviewing.

You can say: “I’ve received an offer at £75k and am very interested in your role. Is there flexibility in your range if we move forward?”

Negotiating Total Compensation

Focus on the entire package, not just base salary.

• If base salary is fixed, negotiate:
  • Signing bonus
  • Additional equity
  • Extra annual leave
  • Flexible work arrangements
• Ask how performance reviews impact salary progression.

Example: If a company cannot move beyond £70k, you might secure a £5k signing bonus and a 6-month salary review.

Negotiation Phrases and Scripts

Keep your tone collaborative, not confrontational.

• Opening:
  “I’m excited about the role and the team. I’d like to discuss the offer to better align it with market expectations.”

• Counteroffer:
  “Based on my experience and the market data I’ve reviewed, I was expecting something closer to £80k. Is there flexibility to move in that direction?”

• Leveraging another offer:
  “I currently have another offer at £78k, but I prefer your team and product. If we can get closer to that range, I’d be ready to commit.”

• Asking for alternatives:
  “If base salary is constrained, could we explore a signing bonus or additional equity?”

  When to Walk Away

Not every offer is worth accepting.

Walk away if:

• The offer is significantly below market without justification.
• The company is unwilling to negotiate at all.
• Red flags appear (unclear role expectations, poor communication, unrealistic workload).
• The compensation does not match your priorities (e.g., equity-heavy but you prefer stability).

Example: If market data suggests £75k-£85k and a company insists on £60k with no flexibility, it is likely not competitive.

Real Example Scenario

A senior engineer interviews with two companies.

• Company A: £85k base, no bonus, modest equity.
• Company B: £80k base, 15% bonus, strong equity.

The candidate prefers Company B but uses Company A’s higher base as leverage:

“I really like your team and the product. I do have another offer at £85k base. If we can bring the base closer to that level or adjust the bonus or equity, I’d be ready to move forward.”

Result: Company B increases base to £83k and adds a signing bonus.

Final Thought

Negotiation is expected, not rude. Companies often build in room for it. Your goal is not to “win” but to reach a fair agreement that reflects your value and sets a strong baseline for future growth.
Would you like this adapted specifically for UK tech roles or tailored to a particular experience level (junior, mid, senior)?

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Rizwan Saleem — https://rizwansaleem.co