Ask for What You Deserve
In today's challenging job market, negotiating your salary as a female software engineer can be intimidating. However, it's important to remember that there is still room to negotiate and advocate for yourself. In this post, we will discuss effective strategies for salary negotiation and provide valuable tips from industry experts Grant Battle - Sr Director People Partner for Pendo and Bavyaa Vasudevan, Head of Engineering at Point and expert negotiating mentor at SheTO.
Shift Your Perspective
During challenging times, it's essential to think about job offers more holistically. Instead of focusing solely on cash compensation, consider the broader benefits package, growth opportunities and future potential. Things like title changes and learning new valuable skills will have an impact on your potential future compensation. Use this time to up-level your skills, gain valuable experience, and enhance your resume.
The Law and Salary Ranges
While salary range laws vary by state, most companies in good faith have ranges with less than a 40% difference between the minimum and maximum. Violations may result in fines and negatively impact the company's ability to attract and retain talent.
Factors Influencing pay bands
Understanding the factors that influence pay bands in a role is crucial. Consider job function, job level, location, compensation philosophy, and whether the company factors in competitors and funding stage. Take time to review compensation data points for companies of interest to get a better understanding of the market.
Most companies have defensible factors they use to assign people to compensation bands. Otherwise they risk being targeted by legal action for non-defensible pay gaps.
These factors can include:
Performance - this is what you have the most control and visibility over.
Experience - can include past or recent, certifications, courses, etc.
Internal Equity - can be interpreted loosely, but most reputable companies will want to be consistent and fair in compensation band placement of new employees and existing employees
Loss impact - if you’re in a position to be a single point of failure, you will have more leverage to negotiate and increase or promotion
Other factors include market and company performance that may shrink the budget available for raises and promotions
To determine if there's a pay gap problem, assess the pay range within your current company. Utilize your network and seek guidance from mentors, SheTO members, or HR professionals who have access to compensation data.
Utilize participant-driven surveys like levels.fyi and platforms like Glassdoor to get a pulse on salary ranges. However, be aware of potential data inaccuracies and carefully review compensation information for companies of interest.
Taking a Pay Cut vs. Continuing the Job Search & Negotiation leverage while unemployed
Consider the size of the pay cut and its impact on your lifestyle. If the cut is reasonable, weigh the potential opportunities for growth, new skills acquired, benefits, personal fulfillment, and alignment with your long-term goals.
It’s important to establish a “walk away number”. You do this by assessing your financial situation honestly and determining a realistic minimum compensation threshold. Negotiate above this number to ensure you're adequately compensated. If transitioning from a public company to a startup, expect a potential dip in compensation and consider engaging with investors to gather more information.
Deciding to negotiate while unemployed depends on your tolerance for risk. Avoid accepting an offer below your worth based on the circumstances of a layoff. Consider what key components you are optimizing for and make an informed decision.
Evaluating Startup Opportunities
When considering joining a startup, several parameters can help you make an informed decision:
Founder Profile: Assess the founder's experience in solving the problem the startup addresses.
Investors: Research the investors and their track record of success.
Funding Stage and Cash Runway: Evaluate the startup's financial stability and ensure you can remain employed for a reasonable period.
Leadership and Culture: Assess the overall leadership and culture of the company to ensure alignment with your values.
Negotiating During Performance Reviews
To negotiate an increase during a yearly performance review:
Keep a Log of Achievements: Maintain a record of your accomplishments throughout the year and periodically share them with your manager.
Regular Check-Ins: Don't wait until the last minute to share information. Regularly update your manager on your progress.
Emotional Preparedness: Have a backup plan to manage your emotions if the outcome is not as expected. Focus on taking control of your career development.
General Tips for Negotiation
Do Your Research: Take advantage of pay transparency laws and gather information from participant-driven surveys and platforms like levels.fyi and Glassdoor.
Avoid Early Commitments: While it's important to be transparent, don't share your desired salary too early in the process. Give yourself room to negotiate and understand what is critical to you.
Leverage Connections: If you have connections within the company, use them to influence the negotiation process. Building relationships and seeking guidance can provide valuable insights.
Conclusion
As a software engineer, and more so as a female engineer who have been historically targets of gender-based pay discrimination, knowing your worth and negotiating your salary is essential for professional growth and financial empowerment. By adopting a strategic approach, leveraging your network, and considering various factors beyond cash compensation, you can position yourself for success. Remember, you are not alone—seek guidance from mentors, industry professionals, and supportive communities like SheTO.