Engineering Manager Salary Negotiation: How to Negotiate an Engineering Manager Job Offer
Recently received a job offer in engineering management? This guide is for you.
Engineering manager roles are in high demand—and your compensation should reflect the unique blend of skills and value you bring to the table. So even if you’ve never done so before, negotiating your engineering manager salary should be a priority for all engineering manager careers.
In this comprehensive guide, we are going to walk you through exactly how to navigate a negotiation to improve your engineering manager compensation package. Our step-by-step salary negotiation process has helped many different types and levels of engineers increase their total career earnings. Whether it’s an EM role in software engineering, cloud security engineering, hardware engineering, or mechanical engineering, or any other type of engineering, the strategies and key insights we will share will help prepare you for every aspect of your engineering manager salary negotiation.
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Understanding the Compensation Components of a Engineering Manager Salary
Whether you’re negotiating a senior engineering manager salary, a Microsoft engineering manager salary, or even an Apple engineering manager salary in artificial intelligence engineering, they all start with the same step: gaining a detailed understanding of your total compensation package.
For almost all engineering manager jobs, your total compensation will be made up of different components that each need to be investigated closely.
For example, in addition to a base salary, many engineering manager offers will also include an annual performance bonus, initial equity package, sign-on bonus, and other benefits like remote work flexibility.
While it might be tempting to only focus on the base salary of your offer, you won’t be able to tell how competitive your compensation really is without unpacking all of its different elements. This is why effective negotiations start with an accurate understanding of the total compensation package at hand.
For example, here is what the average total compensation for an Apple software engineering manager salary may look like in the initial offer:
In the following section, we will go over some of the most common compensation components for engineering manager careers in more detail.
ENGINEERING MANAGER SALARY
The first component we will cover is probably the one you’ve focused on the most: your engineering manager base salary.
As you know, a base salary is the fixed guaranteed pay that you receive in exchange for the work you do, so it won’t change based on your performance or any other external factors.
However, negotiating your engineering manager base salary requires insight into how your salary is determined. In most cases, the company you work for will have different engineering manager roles that each have different base pay ranges associated with them.
For example, the pay range for a senior engineering manager salary would be different from the range for a software engineering manager careers salary at the same company—and the same goes for roles across different companies (i.e., a Google engineering manager salary range will differ from a Facebook engineering manager salary range).
Here’s why identifying and understanding these ranges is so critical: initial offers rarely come in at the top of their pay bands, so if you know what the pay range for your specific role type is, you can try to negotiate your salary to the top end of that range.
ENGINEERING MANAGER PERFORMANCE BONUS
Most engineering manager compensation packages will also include an annual performance bonus—which is typically a percentage of your base salary.
The specific percentage for your engineering manager performance bonus is almost always dependent on both your personal performance and the performance of the company you work for. So unlike a base salary which is fixed, your engineering manager target bonus could increase or decrease depending on the targets you or your company hit.
In rare cases, it’s possible that you could outperform your goals and exceed the target percentage of your annual performance bonus—though it’s not guaranteed. We always recommend to assume the average bonus payout when evaluating and negotiating this component of your engineering manager compensation package.
Even though these bonuses are typically non-negotiable, they can still make a huge difference in your total yearly compensation. And don’t forget that this performance bonus is usually a percentage of your engineering manager base salary; so the higher you negotiate your salary, the higher your bonus could be.
ENGINEERING MANAGER EQUITY PACKAGES
Next, let’s explore a highly sought-after compensation component for engineering managers: equity packages.
If you receive equity in your initial senior engineering manager salary package or any other level EM offer package, it could be offered as either RSUs (restricted stock units or restricted stock awards) or stock options. This grant will include a bundle of shares or options that vest over a defined timeframe (i.e., four years), called a vesting schedule.
The good news is that equity packages for software engineering manager jobs and other engineering manager careers can make a huge difference in your total compensation. However, you’ll need to always keep in mind that the value of this equity can change based on the market value of the company you work for.
For example, say you secure a Meta engineering manager salary—you’ll benefit if Meta’s share value goes up, but you’ll take a loss if their share value goes down. And don’t forget that if you leave the company before the equity vests, you risk forgoing a portion of that grant.
Fortunately, we’ve found that equity packages are usually negotiable for engineering manager jobs—so you should almost always push for more equity in your negotiation.
ENGINEERING MANAGER SIGN-ON BONUS
Most should receive an engineering manager sign-on bonus in their job offers—it just might take some negotiating. An engineering manager sign-on bonus is a one-time bonus that works as an incentive to join the company and can also be used to cover any lost bonuses or unvested equity at your current job.
Some companies won’t offer an engineering manager signing bonus initially, which is why it’s so important to know how to negotiate for one.
And there’s no reason to be afraid of negotiating for one of these bonuses. Over the years, we’ve had countless successes securing large engineering manager signing bonuses—even when the job seeker wasn’t walking away from money at their current company.
Most engineering manager sign-on bonuses are paid in one lump sum within the first 30 days of employment. However, you’ll typically need to pay the bonus back if you leave the company within your first year (or other designated timeframe).
You should be aware that other companies might approach sign-on bonuses differently. For example, the Amazon engineering manager salary package includes sign-on bonuses in year one and year two—which can be paid out monthly instead of in one lump sum payment.
ENGINEERING MANAGER EQUITY REFRESHER
The next element of your job offer to consider is if there is an engineering manager equity refresher.
While it’s possible to receive an equity refresher (more stock) in an initial offer for an engineering manager role, in most cases the recruiters will instead intentionally withhold the stock refresher details. This practice is common for engineering manager Facebook salary offers and other industries that offer this annual equity perk because they don’t want to guarantee the amount as it can fluctuate or be conditional.
During your negotiation, you should ask the hiring team to share more about the amount and timeline of the engineering manager stock refresher. However, don’t be surprised if they refuse to share any specific details—which is why we don’t include this component in our total compensation calculation.
ENGINEERING MANAGER BENEFITS AND PERKS
As with any job, engineering manager benefits and perks will look very different depending on the specific company you work for (i.e., Google software engineering manager salary benefits will differ from engineering manager Meta salary benefits).
However, some of the most common benefits extended in these types of roles you can expect are things like health insurance, unlimited vacation, or even fitness memberships.
Another top perk of engineering manager roles is the ability to work and manage your teams remotely, which we recommend bringing up during the interview process. Unfortunately, most other benefits are usually non-negotiable depending on the size of the company. However, it is possible in some cases to get changes approved via an under-the-table agreement with your future hiring manager (i.e., your manager will be more flexible with your PTO or work-from-home office stipends).
Five Key Steps to Negotiate a Engineering Manager Job Offer
Now that we’ve covered the most common compensation components of an engineering manager salary, it’s time to learn how to negotiate for an improved engineering manager job offer.
Before we explain the steps for a successful negotiation, it’s important to clarify that you should only ever follow these strategies once you have an official offer in hand. Negotiating without an offer can work against you and remove any leverage you have.
So once you have been officially extended an offer, you can follow the steps listed below that have helped hundreds of engineering professionals negotiate successfully. And if you’re looking for coaching on your engineering manager salary negotiation, you can also reach out to our team.
1) UNDERSTAND THE COMPONENTS OF YOUR ENGINEERING MANAGER SALARY
This first step in the negotiation process should be relatively simple since we’ve already completed it.
As a quick reminder, make sure to review your engineering manager salary package for a base salary, performance bonus, initial equity grant, sign-on bonus, and any benefits and perks. Understanding the different elements that make up your total compensation is key to any successful and effective negotiation.
You can use our Total Compensation Calculator to calculate your engineering manager compensation components in this step if needed.
2) COMPLETE DUE DILIGENCE ON ENGINEERING MANAGER JOB OFFER BY ASKING QUESTIONS
Once you have carefully evaluated all of the different elements of your engineering manager jobs offer, the next step is to begin asking strategic questions. Doing so can help you establish an effective engineering manager salary counter, and it communicates to the recruiting team that you are taking the offer seriously.
Unsure what sort of questions you should ask? Start by asking for clarity on any items that the recruiter may have been vague about (i.e., What is the equity vesting schedule for this role?). The answers you collect will include important data points you can use in your engineering manager counteroffer.
We suggest starting this phase of the negotiation right after you receive the job offer. And if you’re struggling with coming up with the right questions to ask, you can use our list of Strategic Questions to Build Negotiation Leverage.
3) RESEARCH TO IDENTIFY WHAT ENGINEERING MANAGER SALARY SHOULD LOOK LIKE
Since the salary ranges for engineering managers will differ by company and role (i.e., is it a software engineering manager salary or senior software engineering manager salary), you’ll need to conduct some detailed research to understand the strength of your current offer and how much you should ask for in your engineering manager counter offer.
During this step, it’s critical that your research is specific to your exact role type (i.e., is it an Apple senior engineering manager salary or software engineering manager Google salary) and where it’s located (i.e., is it an engineering manager salary NYC or an engineering manager salary San Francisco), whether that be in-person, hybrid, or remote.
There are many online resources you can use in your research, such as PayScale or Built In. However, keep in mind that ranges on these types of sites are publicly reported by current or past employees—so the pay they show could be different from what is now offered to new employees. That’s why we recommend comparing pay data findings across multiple different sites for the most accurate data. You can also use our Total Compensation Research Comparison Tool to help you with your compensation research and identifying and evaluating the pay ranges for your role.
And if you’re ever surprised by the engineering manager pay data you uncover, here’s something to remember: in any job offer you accept, you’ll ultimately be expected to manage the same responsibilities as anyone hired for that same position. What this means is that you should almost always push for at least the mid- to top-end of the total pay range for your specific engineering manager role—regardless of your experience or background.
4) SEND AN ENGINEERING MANAGER COUNTEROFFER TO THE RECRUITER
Now comes the step you’ve been waiting for: sending over your engineering manager counteroffer.
By now, you should be fully prepared to present your engineering manager counter offer to the recruiter with references to your pay range data findings and explanations for how the benefits in your offer differ from other companies and/or your current position.
We always recommend that you present your engineering manager counter offer via email as opposed to by phone. Drafting an email gives you the time and freedom to write out exactly what you want to say, helping to minimize the risk of going off-topic. An email also gives the recruiter something they can easily forward on and share internally with their team.
The most important thing to remember in this step is to always present your engineering manager counteroffer professionally and kindly—this is your first chance to showcase what you would be like to work alongside. To ensure proper communication, use our Counteroffer email templates for examples to help you formulate a strategic counteroffer.
5) HANDLE ANY OBJECTIONS AND ACHIEVE THE BEST ENGINEERING MANAGER SALARY
After you send over your engineering manager counteroffer, be prepared for the recruiting team to come back to you with a list of reasons why they can’t make any increases or changes to the engineering manager salary.
If this happens, don’t panic—this is a typical part of the process. When faced with these kinds of objections, respond professionally by stating you understand their constraints, but ask again if they could take your counter back to their team for one last look (like we explain in our Objection Handling Scripts). You should still ask even if they insist their team will just say no.
Once they agree to take your thoughts back to their team, they should return with an improved offer. If the updated compensation package aligns with the engineering manager salary bands you researched and meets your needs, you should be ready to send over an offer acceptance email to lock it in!
Mistakes to Avoid in an Engineering Manager Salary Negotiation
Before we end, there’s still one more thing we need to go over: common mistakes made during negotiations. Below we’ve listed some of the top things you should make sure you avoid when you negotiate your engineering manager salary.
AVOID SHARING SALARY EXPECTATIONS BEFORE YOU GET A JOB OFFER IN ENGINEERING MANAGEMENT
Many job seekers are unaware that sharing your salary expectations before you receive an official offer often works against you.
Here’s how this could play out: Say you’re interviewing for engineering manager jobs at Google. If you share a lower Google senior engineering manager salary than what the company could offer, they will be incentivized to now offer you that lower compensation. On the other hand, if you share a Google senior engineering manager salary number higher than what they could offer, there is a chance that they could become disinterested and choose a different candidate over you. During any job search or negotiation process, never forget that recruiting teams are working for the company, not you.
It also doesn’t make much sense to talk about salary expectations before you learn more about the specific engineering manager role, its total compensation package, and whether those aspects feel like a good fit for you. After all, you’re also interviewing them to see if this role is something you want to pursue—so be sure to overcome these tactics by responding like this.
DON'T BE AFRAID TO NEGOTIATE AN ENGINEERING MANAGEMENT SALARY
Too many people in engineering manager careers don’t negotiate out of fear. In many cases, they are worried about offending the recruiting team or losing the job offer altogether.
However, you’ll be encouraged to know that we’ve helped facilitate hundreds of successful salary negotiations and we’ve never seen a company rescind an engineering manager job offer because of an attempted negotiation. Don’t let salary negotiation myths keep you from securing the compensation you deserve.
BE REALISTIC BY DOING YOUR ENGINEERING MANAGER SALARY RESEARCH
Even though engineering manager jobs are in high demand and their roles pay well, you should still be realistic about what salary you ask for in your negotiation.
To do this, make sure that your research is thorough and specific to your exact role so that you only push for compensation that the company can realistically provide. For example, the compensation for a senior engineering manager Google salary might look different than the compensation for a TikTok engineering manager salary.
The Bottom Line: Negotiate a Engineering Manager Salary
We believe that all engineering managers can and should negotiate their job offers. Our Salary Negotiation Coaching team has years of experience helping engineers of all kinds negotiate for higher compensation and can help you negotiate your engineering manager salary. Our team has years of experience helping engineers of all kinds negotiate for higher compensation.
We also have our How to Negotiate Your Job Offer and How to Negotiate Your Current Salary courses, and Salary Negotiation Scripts & Templates if you prefer to learn at your own pace and want to gain the confidence and tools to negotiate your compensation.