Negotiation Course: Don't Give A Number First

The most important rule of negotiation is "Don't give a number first." Don’t talk about what compensation you’re expecting, and definitely don't share what you were making at your last job. 

It’s actually illegal in 22 states for recruiters to ask about your prior compensation (CA, NY, IL): <https://www.hrdive.com/news/salary-history-ban-states-list/516662/> 

Because of the info asymmetry we talked about before, there’s no benefit to you sharing a number, but a lot to lose. Henry Ford (the automaker in Detroit in the early 20th century) illustrated this well. He employed a tactic called "highball negotiation" where he would match the offer given by a landowner, even if it was inflated. Read more about this in "[The People's Tycoon: Henry Ford and the American Century](https://www.amazon.com/Peoples-Tycoon-Henry-American-Century/dp/0375707255)" by Steven Watts

Example dialog from the recruiter:

> We really need a number before proceeeding”

Sample candidate reply:

> At this time, I’m more focused on determining if the role is a good fit. I’m confident we can figure out an agreeable number once we mutually agree that we could work together.

Negotiation Course: How To Practice Negotiation Skills

Just like anything else, practice makes perfect. But conceptually understanding negotiation and practicing negotiation is very, very different.

Be aware of the difference in the incentives and working model between a job negotiation (once every 2 years) and your operational model on the job (every day).

- One (the job) is built on shared understanding, sharing vulnerability. There's a clear incentive to make life more comfortable for people around you.
- One (the negotiation) is **not** built on shared understanding. The person who wins is the person who can tolerate discomfort.

The upshot of all this is that negotiation is extremely important but you don’t get to practice much. Verbalize the advice and practice in conversation with a friend or family member.

Negotiation Course: When Should You Negotiate? And When Should You Not?

Negotiation makes the most sense for "high-leverage jobs" like software engineering or most other jobs in tech. An example of a low-leverage job would be to stock shelves in a grocery store or drive a taxi in NYC. The difference between the best and average worker in those fields is not that large. But in engineering, the difference in output for the best vs the average can easily be 10x or 100x.

Within the high-leverage category, there are jobs that have many comparable data points (e.g., junior or mid-level engineer) and those that are bespoke because they're rare/senior at the company, e.g., executive level or senior engineering leads.

Negotiation makes less sense for jobs that are purely stepping stones, or those that are time-bound. The classic example here is for internships. A good litmus test is if you know anyone who has ever negotiated that offer, e.g. no one at Stanford ever negotiated the summer research pay.

Finally, negotiation does not make sense if you already accepted the offer at a lower number.

Negotiation Course: Negotiation Is All About Leverage

The idea of **BATNA** (Best Alternative To A Negotiated Agreement) is about your ability to walk away from a deal. It is "*the most advantageous alternative that a negotiating party can take if negotiations fail and an agreement cannot be made.*" This will dictate your success in any kind of negotiation.

**As soon as you want something too badly, and the other party knows that, you will be taken advantage of**. (This is also how Venture Capitalists operate, by the way.)

There are three ingredients needed to gain leverage (and therefore successfully negotiate): 

1. Time (patience)

2. Information

3. Options (leverage)

If you have all 3, you can walk into negotiations with confidence.

Negotiation Course: Recognize The Information Asymmetry

First, let's make clear a harsh truth of the world: Companies are economically incentivized to pay you as little as possible, even if you think they're generous.

**You don’t get what you deserve, you get what you ask for.** Many candidates are unaware how high compensation can go, and therefore never ask about it. This leads to them being underpaid, and the information asymmetry is used to benefit the company.

Recruiters and companies talk to candidates every week or even every day. On the other hand, you probably only talk to a few companies every few years. So recruiters have way more information about what you’re likely making and what you may expect.

Negotiation Course: Understand What You’re Negotiating For

The most common (and important) parts of a compensation package in tech are: base salary, sign-on bonus, equity, annual bonus. There are other high-value benefits such as a 401k match, paid time off (PTO), and healthcare, but these are typically not negotiable terms. 

It's important to figure out what are the negotiable terms and what are not. e.g. start date is be negotiable: if you don't care about this, you can mention to the recruiter that you're willing to start as needed if the company can offer flexibility on a term that you care about, e.g. salary.

Another important takeaway is that "negotiating a job offer" and "negotiating a salary" are NOT the same thing. You should negotiate the terms of an offer in parallel, not serially. Talk about the whole package rather than talking about individual components.

Negotiation Course: Why Negotiation Is Extremely High Leverage

Negotiation may take a few hours of time (and a bit of uncertainty/discomfort), but the result could be life-changing for you. In a place like Silicon Valley, where engineers are highly paid, successful negotiation could easily net you 5 or 6 figures of additional income.

In addition, an increase in salary will “anchor” your compensation and the benefit will compound since raises are based on this. e.g. a 5% raise is a larger dollar value compared on a $120K salary ($6K) compared to a $100K salary ($5K).

The Steve Ballmer story when he joined Microsoft is an example of one of the largest wealth increases ever due to negotiation: his net worth today is $120B (that's $120 billion!). Even though he joined Microsoft as employee #30 in 1980, he ended up negotiating 8% equity ownership of Microsoft, a deal that made him a billionaire many times over. (Read more about [Steve Ballmer's deal here](https://www.forbes.com/sites/georgeanders/2014/09/30/long-ago-twist-yielded-ballmer-a-fortune-in-microsoft-stock/?sh=16d42b7736a5).)

The famous article from Patrick McKenzie ([patio11](https://twitter.com/patio11)) about negotiation: [Salary Negotiation: Make More Money, Be More Valued](https://www.kalzumeus.com/2012/01/23/salary-negotiation/)

Negotiation Course: Misconceptions Around Negotiating

Given how taboo money + compensation is, there are unsurprisingly many misconceptions about negotiation. Here are 3 common lies you may have heard about negotiation:

**Myth #1**: *"Your offer will get rescinded if you negotiate."* Companies will never rescind your offer for simply negotiating if you do it in good faith and you're not lying about it. Once you’ve gotten to the offer stage, the company has invested many hours of time evaluating you, so it'd be irrational for them to withdraw the offer simply because you're curious about the compensation package.

**Myth #2**: *"Negotiation makes you look cheap."* In fact, quite the opposite. Negotiating effectively shows that you're a high-value candidate, and that you understand the value you're bringing to the company. 

**Myth #3**: *"Someone will get less if you get more."* This is not how tech job offers work. The technology industry (at least the VC-backed companies that employ the majority of people) is focused on rapid growth. These companies are generally more concerned about growth rather than trying to save money through small compensation adjustments.

File all this under fake news!

Negotiation Course: Rahul's History And Success With Negotiation

Rahul's compensation went from $110K at the beginning of his career to $830K in his peak earning year, 2021, as a Tech Lead and Manager at Meta (Facebook). That's more than 7x! A lot of his Total Compensation (TC) growth can be attributed to his ability to negotiate. There were 2 main segments of negotiation in Rahul's career: 

- 2013: 5 offers at Facebook, Google, Twitter, Microsoft, and Square
- 2017: 6 offers at Facebook, Google, Snapchat, Stripe, Uber, and Airbnb

This gave Rahul the leverage he needed to see dramatic increases in compensation. Some examples: 

- The Snapchat stock grant went from $600K --&gt; $1.0MM and the signing bonus went from $10K --&gt; $100K
- The Facebook stock grant went from $325K --&gt; $600K and the signing bonus went from $30K --&gt; $45K

The numbers here are due primarily to timing, information, and options, all things you can learn. The results can be life-changing, and you don't need to be a genius programmer to discover your own version of this.

These data points show how negotiation is extremely high leverage. A few hours of extra work can lead to a change of 6 figures or more in compensation.

- Rahul's YouTube video about 5 offers he received as a new grad: <https://youtu.be/rceUVaiXQgU> 
- Rahul's YouTube video about how compensation in tech works: <https://youtu.be/wqdpzu4Oa2I>

Negotiation Course: How This Course Works

Your ability to negotiate is undeniably one of the highest-leverage skills you can learn. But tech workers are notoriously bad at negotiation. Based on discussions with 100s of tech workers, there are 2 common reasons for this: 

1. They choose not to negotiate. They somehow view negotiation as a perverse 'badge of honor' that they simply accept the first offer they receive and they don't want/need to ask for any adjustment. 
2. They try to negotiate but are ineffective. They don't have leverage or cannot defend why they're asking for certain things. 

This course is designed for tech employees who are exploring job opportunities and will receive a job offer in tech (and ideally multiple!). My goal is for you to feel confident and strong in discussions you have with recruiters and hiring managers.

This course is broken down into 3 major parts: 

1. **Principles** - How does negotiation work and why is it worthwhile?
2. **Planning** - What should you do (and not do) before and offer you receive an offer?
3. **Tactics** - What is the best course of action for various scenarios?

If you get more than a $10K increase in your compensation by following the tactics outlined in this course, send me an email at [rahul@jointaro.com](mailto:rahul@jointaro.com) -- we will celebrate together!

Onboarding Strategies For Engineers [Lightning Lesson]

As a new hire, onboarding is your responsibility, not your manager's.

The first few months in your job are crucial for creating first impressions and relationships that can either accelerate your success or limit your potential.

This is one of the concepts we cover in the Senior to Staff cohort-based course in June: <https://maven.com/taro/senior-to-staff>

30% of tech workers leave their jobs within 90 days -- don't be one of them! What you'll learn:

### **My Talk & Observe framework**

Build respect with your new manager and team.

### **4 key questions to ask your colleagues**

Learn crucial context and history from colleagues on your team or adjacent teams.

### **How to prevent failure modes**

Too many engineers are surprised with negative feedback in their first performance review -- we'll discuss why.

Taro Book Club: Designing Data Intensive Applications - Chapter 6 (Partitioning)

Topic: Chapter 6 - Replication

Session led by: [Bhavana Gannu](https://www.linkedin.com/in/bhavanagannu/) and [Suraj Singh](https://www.linkedin.com/in/suraj-singh-495b192b/)

In this #taro-bookclub discussion, we talked about Chapter 6 of [**"Designing Data-Intensive Applications"**](https://www.amazon.com/Designing-Data-Intensive-Applications-Reliable-Maintainable/dp/1449373321) by Martin Kleppmann.

[Office Hours] Doubling Your Impact As An Engineer By Doubling Your Empathy

Session led by [Ryan Kuck](https://www.linkedin.com/in/ryan-kuck/)

A core theme on Taro is that by increasing empathy you will build better, stronger relationships with your teammates. Additionally by having empathy for your manager, you will simplify your communication with them and make it easy for them to see your impact. And while it is tempting to put up a pull request as soon as the code is done, taking extra time to divide it into small, thoughtfully crafted pull requests that make OTHER people's life easier will make you a joy to work with. All of this is *slightly* counterintuitively about taking time to understand someone else better to make their life better which actually is a practice that makes your life a lot better.

Let's get together and swap stories about this! If you landed a promotion from thinking about the user's perspective and building a new feature for them, or you built an internal tool that saved other folks from having to do a repetitive task, please join and share! Also welcome is anyone who has a challenging work situation and is wondering if increasing empathy could help improve it.

Paper Reading: AutoDev: Automated AI-Driven Development

Are you interested in tools like the recently announced Devin?\
\
Join us for an enlightening session as we delve into the cutting-edge world of agentic AI-driven software development, featuring a comprehensive exploration of the AutoDev framework, Microsoft's agentic AI-driven software development framework.

This reading event will elucidate how AutoDev will revolutionize the software development process. Through enabling autonomous planning and the execution of complex engineering tasks, AI agents such as AutoDev will be fully integrated into common tools and technologies such as VSCode and GitHub. Discover how these agents can perform multiple operations on a codebase, from file editing and testing to git operations, all within a secure Docker-based environment.

Moreover, we will examine AutoDev's impressive performance on the HumanEval dataset, achieving remarkable scores of 91.5% and 87.8% for Pass@1 in code generation and test generation tasks, respectively. We will also discuss the implications of this research for the future of AI-assisted software development.

This event is a must-attend for software developers, researchers, and tech enthusiasts eager to understand the future of agentic AI-driven software development and its potential impact on the software development landscape. Whether you're interested in improving your development workflow, exploring AI applications in software engineering, or simply curious about the latest advancements in AI-driven development tools, this paper reading offers valuable insights and discussions on the forefront of technology innovation.

Mark your calendars and join us for an exciting hour of "AutoDev: Automated AI-Driven Development" exploration!

Q&A: Acing Tech Interviews In A Bad Job Market

Check out the full 4.5+ hour course diving even deeper into this session's concepts: [\[Course\] Ace Your Tech Interview And Get A Job As A Software Engineer](https://www.jointaro.com/course/ace-your-tech-interview-and-get-a-job-as-a-software-engineer/)

Get Taro Premium at a discount with our special link here: <https://www.jointaro.com/r/achiou15/>

As a Taro Premium community member, you can get personalized advice from proven tech leads like Alex and Rahul at any time by starting career discussions in our forum and joining [Group Office Hours](https://www.jointaro.com/event/group-office-hours-with-alex-career-direction-company-offer-evaluation-jan19/). 

This is the Q&A portion of the 1-hour session we did about finding interview success in a bad job market. You can watch that session here: [Acing Tech Interviews In A Bad Job Market](https://www.jointaro.com/lesson/Vz4jXfFIeQSSSzonpvH0/acing-tech-interviews-in-a-bad-job-market/)

Related resources for the questions in this video:

- [\[Masterclass\] How To Ace Your Big Tech Interview - Data Structures And Algorithms](https://www.jointaro.com/lesson/V4sTACzfOh22nMVcUV3w/masterclass-how-to-ace-your-big-tech-interview-data-structures-and-algorithms/)
- ["How can I get more internships?"](https://www.jointaro.com/question/k8TNvbobgU1R7ICDWKus/how-can-i-get-more-internships/)
- [\[Masterclass\] How To Choose A Good Company And Team As A Software Engineer](https://www.jointaro.com/lesson/0WEmTNZOMIh8xAdfO3JH/masterclass-how-to-choose-a-good-company-and-team-as-a-software-engineer/)

Acing Tech Interviews In A Bad Job Market

Here are the core points from the session:

- **Organize and track your job search** - Every successful job search is split up into the 2 overall steps of *"Get interviews"* and *"Pass interviews"*. It's crucial to figure out which step you're struggling with as the solutions for each phase are wildly different. If your conversion rate from application -&gt; interview opportunity is less than 5%, that's a sign that you need to improve at the *"Get interviews"* step. Use a spreadsheet to keep track of how all your opportunities go, so you can construct a funnel and figure out which stage of the offer journey needs shoring up.
- **Have the right mentality** - *Do not view interviews as a "make or break" opportunity, even if they are!* When you put that much pressure on yourself during an interview, you become extremely high-strung and your performance tanks, particularly when you get a problem that you have never seen before (which is guaranteed to happen for any good tech company). Instead, go into every interview relaxed and view it as a fun learning opportunity where you get to hang out with very talented engineers. Having the wrong mentality is one of the most common reasons engineers fail FAANG interviews: Alex interviewed tons of candidates back at Meta where they had the skills and knowledge but they completely fell apart during the interview.
- **Learn how to cold message** - Too many engineers send generic cold messages to Big Tech recruiters, which is a complete waste of time. Cold messages really only work when you're doing it with a smaller company (&lt;250 employees) and putting actual effort into the message. Spend 10-15 minutes actually trying out that company's product and show that you've done that homework in your cold message.

Check out the full 4.5+ hour course diving even deeper into this session's concepts: [\[Course\] Ace Your Tech Interview And Get A Job As A Software Engineer](https://www.jointaro.com/course/ace-your-tech-interview-and-get-a-job-as-a-software-engineer/)

Get Taro Premium at a discount with our special link here: <https://www.jointaro.com/r/achiou15/>

For more job searching resources:

- ["How to get referrals?"](https://www.jointaro.com/question/FQIi8us9uoTDIYdzMhvg/how-to-get-referrals/?playlistId=roKqDHgxu4C5CioEFpJY)
- ["How to get interview calls?"](https://www.jointaro.com/question/MWJfUBnnUr8CKYFCO8bp/i-want-to-land-a-job-in-a-big-tech-as-a-swe-how-to-do-it/?playlistId=roKqDHgxu4C5CioEFpJY)
- ["What are the best websites for applying for tech jobs?"](https://www.jointaro.com/question/VkuG4W88SZ83Ek7AfLP6/what-are-the-best-websites-for-applying-for-tech-jobs/)
- ["How to figure out why I'm not passing onsite interviews?"](https://www.jointaro.com/question/CdmrIsMFPFbsRqRUvueu/how-to-figure-out-why-im-not-passing-onsite-interviews/?playlistId=IPFmEPUhAmizNe9ZUWV5)
- ["I want to land a job in a big tech as a SWE - How to do it?"](https://www.jointaro.com/question/MWJfUBnnUr8CKYFCO8bp/i-want-to-land-a-job-in-a-big-tech-as-a-swe-how-to-do-it/?playlistId=roKqDHgxu4C5CioEFpJY)

From "Meets Most" to "Greatly Exceeds" in 3 Months at Facebook

Imagine pouring your heart and soul into your work, only to be met with criticism instead of commendation. This scenario is all too familiar for many engineers who, despite their hard work, find themselves at odds with their manager's expectations due to a misalignment with business priorities. My own journey at Facebook serves as a testament to this common predicament. Tasked with two major projects, I found myself at a critical juncture halfway through, being told my efforts were not meeting expectations.

I was not always doing exceptional at Facebook, but this time I knew that I was not below the "meets expectation" mark. I had been there before, but this time was not it.

Learn more about ratings at Facebook (aka Meta): <https://www.jointaro.com/topic/meta/performance-review/>

Despite knowing that, the assessment of the manager was a bitter pill to swallow, leaving me furious and speechless. However, it also marked the beginning of a transformative journey. I ventured into realms that many engineers shy away from, embracing principles that I previously overlooked. This shift in behavior and perception propelled me from being perceived as merely meeting most expectations to greatly exceeding them, achieving a rating leap that not only vindicated my efforts but also significantly enhanced my bonus.

In this seminar, I aim to share the insights and strategies that catalyzed my dramatic turnaround. I will delve into how a recalibration of focus and an embrace of broader impact can elevate your work from good to exceptional. Additionally, I will touch on the crucial balance between maintaining stellar job performance and navigating a job search. This balance is critical for ensuring you are not cornered should your job search extend longer than anticipated. Join me as I unravel the nuances of achieving long-term career satisfaction through sustained excellence and strategic job search efforts.

Check out these resources for additional deep insights into performance review:

- [\[Masterclass\] How To Navigate Your Performance Review In Tech](https://www.jointaro.com/lesson/b0B8uqIAUnBLE10jJHJG/masterclass-how-to-navigate-your-performance-review-in-tech/)
- [\[Masterclass\] How To Work Better With Your Engineering Manager](https://www.jointaro.com/lesson/2PbJb2fuqF3iMHy57eEg/masterclass-how-to-work-better-with-your-engineering-manager/)

Presented by Yogi Sharma: <https://www.linkedin.com/in/yogi1/>

Nail Your Promotion As A Software Engineer [Part 31] - Promotion Is A Journey: Follow Through

Promotions take years, especially the more senior ones. You won't automatically become a promotion wizard by finishing this 1 course. You need to follow through, and the Taro community is here to help you along the journey.

- Junior to mid-level promo: <https://www.jointaro.com/course/grow-from-junior-to-mid-level-engineer-l3-to-l4/>
- Mid-level to senior promo: <https://www.jointaro.com/course/grow-from-mid-level-to-senior-senior-l4-to-l5/>
- Senior to staff promo: [https://www.jointaro.com/course/grow-from-senior-to-staff-engineer-l5-to-l6/](https://www.jointaro.com/course/grow-from-senior-to-staff-engineer-l5-to-l6/how-this-course-works/)

Nail Your Promotion As A Software Engineer [Part 30] - Be Patient

It can be frustrating waiting so long to get promoted as a software engineer. You've been working so hard for so long, and you still don't have that fancier title. This lesson teaches you:

- Why getting promoted is so hard
- The right mentality to always have as you're going through the promotion process
- A clear framework you can use to determine if you are truly getting better as an engineer

Nail Your Promotion As A Software Engineer [Part 29] - The Step-By-Step Plan

Here's the step-by-step plan if you want it for your notes:

### Find A Good Team

- **Engineering manager has a track record getting engineers promoted**
- Teammates 1 level above you to learn from
- Teammates more junior than you to lead
- Team isn’t overloaded with engineers at your level
- Team isn’t overloaded with engineers at next level

To learn about finding a quality engineering manager: [\[Masterclass\] What Software Engineers Should Look For In Their Engineering Manager](https://www.jointaro.com/lesson/oeY7ncZhzJ5NO6dij5e7/masterclass-what-software-engineers-should-look-for-in-their-engineering-manager/)

### Establish Yourself As A High Performer

- **Build a strong, honest relationship with your engineering manager**
- Identify core peers and add value to them to make them like you
- Develop a consistent track record shipping with velocity and quality
- Look for opportunities to expand scope of assigned projects
- Be creative and brainstorm new project ideas

To learn how to build trust quickly: [\[Course\] Effective Communication For Engineers](https://www.jointaro.com/course/effective-communication-for-engineers/)

### Clarify Expectations And Gaps

- **Write a promotion plan with as much clarity as possible**
- Have that honest, deliberate conversation with your manager
- Observe engineers at the next level to understand the delta
- Break down your weaknesses across engineering axes
- Don’t get jealous of more senior peers

### Execute And Grow

- **Make sure to check in on and maintain your expectations plan**
- Publicly document and share your wins
- Go through your gaps 1 by 1 and patch them up
- Be hungry for feedback and learn from mistakes
- Amp it up in the final quarter before review

To learn how to get constructive feedback: [This Is How You Get Feedback - Making The Process Smooth](https://www.jointaro.com/lesson/aGuxjGbFjYb34ofhRxjs/this-is-how-you-get-feedback-making-the-process-smooth/?playlistId=llknt3sHtV4xmhDThKOx)

### Go Through Performance Review

- **Thoroughly go through your promotion plan and make sure it’s all addressed**
- Compile artifacts from your brag journal, launch posts, and other sources
- Link as much evidence as you possibly can
- Request targeted feedback from core peers
- Share self-review with manager beforehand

Tech Career Growth Videos

Our instructional videos provide software engineers with insights needed for career growth. Masterclasses go incredibly in-depth on a specific tech topic while case studies are real examples from established engineering leaders.