Hiring an engineer, developer, or other technical role is difficult, which makes losing a great candidate during salary negotiations all the more painful.
If you’re nervous about the negotiation phase or you’ve had one too many candidates walk away over compensation, you’re not alone. It’s one of the trickiest parts of the hiring process! Offer too low and they ghost you; offer too high and you risk blowing your budget. And if you wait too long to talk money, you could waste weeks on someone who was never within range.
But it doesn’t have to be this way. In this article, I’ll walk you through the exact questions we hear from hiring managers and HR pros who want to do it right.
We’ll cover:
- How to structure your offer and leave room for negotiation
- When salary conversations should start
- What technical candidates care about beyond money
- How to respond to counteroffers or budget mismatches
- Where to find credible salary benchmarks
What’s the Best Way to Negotiate Salary with a Technical Candidate?
Start with this mindset: salary negotiation isn’t a battle—it’s a conversation. You’re not trying to “win.” You are trying to find someone to join your team that will be a value-add to your organization.
A successful negotiation:
- Respects the candidate’s experience and market value
- Aligns with your company’s compensation philosophy
- Doesn’t feel rushed, shady, or overly transactional
Too often, compensation is treated as a taboo topic during the hiring process, but the best negotiations are rooted in transparency. That doesn’t mean you have to lay all your cards on the table on day one, but it does mean setting clear expectations.
When Should You Bring Up Salary in the Hiring Process?
A lot of companies wait until the very end, after final interviews, to bring up money. In my opinion, that’s too late.
I recommend talking about salary expectations early, ideally during the first screening call. Not in the form of “What’s your currently salary?” (don’t do that!)—but instead:
“I want to be respectful of your time. For this role, our target range is [$X-$Y]. Does that fit within the range you are targeting?”
This helps avoid wasting time on candidates who are way outside your range, and it builds trust and transparency between you and the candidate.
Should You Post Salary Ranges in Your Job Descriptions?
More states are starting to require this, but if yours doesn’t, it’s worth considering. Posting ranges in job descriptions can save you time and build trust. Candidates are tired of guessing, so even a broad range can give them a sense of whether it’s worth applying.
If your state doesn’t require it and you’re not sold on posting your ranges, that’s okay too. However, you may be missing out on good candidates. According to a Gartner study in 2023, 64% of candidates reported they are more likely to apply for a job that lists compensation in the description.
How Much Negotiation Room Should You Leave in a Salary Offer?
Short answer: plan for 5-10% wiggle room.
If you’ve done your homework and benchmarked the role well, you shouldn’t need to pad your offer by 20%. That creates internal pay equity issues and can lead to overpaying out of fear.
Here’s a simple approach:
- Define your salary range based on market data (see helpful tools below).
- Decide your midpoint and where most hires should land.
- Leave 5-10% room above that for exceptional candidates or negotiation.
Finally, be ready to explain how your offer was built. Most technical candidates are data driven. If you can share how your range compares to industry benchmarks, you’ll build credibility fast.
Salary Benchmarking Tools to Help You Make a Fair Offer
A few reliable resources my team uses are Salary.com and Payscale.
Use a couple of sources and average them out. Then gut-check your offer against what your candidates are asking for.
If you do use AI to aid your salary benchmarking research, here’s a helpful prompt for you to try:
“Help me analyze salary data for [position] in [location]. Create a summary comparing market rates across different sources, considering experience levels and required skills.”
What If Your Offer Doesn’t Meet a Candidate’s Expectations?
If you can’t meet the number, say so clearly. But don’t walk away just yet.
Instead:
- Share your total pay package: benefits, bonus, PTO, 401(k), equity
- Explain non-monetary levers: job title, flexibility, training and upskilling
- Ask what would make the offer feel right to them
Sometimes, just showing effort and flexibility is enough to bridge the gap.
What Technical Candidates Really Care About Beyond Salary
Money matters, but it’s rarely the only thing on the table.
Here’s what we’ve found technical talent to weigh almost as heavily:
- Work-life balance (flexible hours, remote/hybrid)
- Career growth (mentorship, learning, upward mobility)
- Company tech stack, products/services, and mission
- Team quality and culture
- Equity or bonus structure
- PTO, insurance, and retirement contributions
If your base salary isn’t top-of-market, but you offer strong perks, make that part of the conversation. Just don’t try to use snacks and ping-pong as a substitute for fair pay!
What Really Kills Offer Acceptance Rates
It’s not always the numbers on the offer letter that cause candidates to decline. Many times, it’s the way you present it.
Here’s what kills deals:
- Ghosting candidates
- Lowball offers without rationale
- Delayed response times
- Transactional language with no candidate care
Here’s what helps:
- Being clear about your timeline
- Justifying your range or offer with data
- Offering a short call to talk through the details
Also, follow up! If a candidate hasn’t replied in two days, send a friendly check-in. Don’t assume silence means rejection.
Final Thoughts: Salary Talks Don’t Have to Derail Your Hiring
You don’t need to feel like you’re walking on eggshells during salary negotiations. If you approach conversations with preparation, empathy, and transparency, you can land the candidate AND feel good about the offer.
To recap:
- Talk about compensation early, not at the end.
- Leave modest room for negotiation (5-10%).
- Know what matters most to technical talent.
- Be honest about what you can offer and where you can/can’t flex.
- Use data to back up your offer and build trust.
If you want to build stronger compensation practices, close top talent faster, or train your hiring team to handle these conversations better, we can help. Let’s turn more of your offers into signed acceptances, with less stress!
