I got an offer from Aptiv for $100,000 + 5% annual bonus + $2,500 signing bonus. This is a new grad role for Algorithm Engineer located in Los Angeles, CA.

I'm thinking about negotiating but I have no idea how to do that. Can anyone give me any tips? Or any feedback on how good/bad this offer is?

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I’m not in engineering so I’ll let someone else speak to the comp itself but negotiation is an art that spans industries.

Firstly did you give them a salary range or expectation? I’m going to assume no since you’re asking about the comp. Which is good because then they don’t necessarily know how you feel about it.

I’m in the camp of always negotiating and you can approach it in a few ways. Basically you want to have a reason for asking for what you’re asking for. Things like…

“Considering I have to relocate for this role, is there an additional relocation package or are we able to increase the signing bonus to offset my moving expenses”

Or

“I have a competitive offer at $110k but this is my top choice, is there any wiggle room in the budget to increase my base”

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I wanted to add, if you don’t really have justification and you’re happy with the number, you aren’t required to push back! If something is important to you, absolutely ask for it. And remember, it’s not always about the base!

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It does sound a bit low for HCOL like LA. My new grad position was 110k in Seattle, which has no income tax and a slightly smaller COL. Do you get any RSUs in addition to that?

In any case, negotiation is an art that you'll need to perfect.
1. Research. Find your value. Look at comparable jobs for similarly experienced people. That's about your worth. If it's higher, they probably know that and are prepared to pay that amount. E.g.

"I did some research and it seems like my market value is 120k. I'm very excited to work with you, and I'm prepared to sign right away for a 10k increase in salary."

Prepare for a response - often they do counteroffers. With that in mind, aim maybe a little higher than you really want so they bring you back down to about what you want.

2. Have leverage. Right now the company has all the power. What gives you leverage?

A competing offer is the biggest one. If somewhere else is willing to pay you more, you can let them know and they'll increase their offer to try to retain you.

Without another offer, your best leverage is no reason to join. For example, a current position - so you're still working even if you don't take the offer. Similarly, a graduate course that you could do instead of working. This way they know you don't have to take the best offer that comes your way.

Apart from that, leverage drops off significantly.

3. The final lever that you have is other benefits. If they don't want to negotiate on your comp, try to negotiate days off or other benefits.

If that doesn't work, then distribution. If you want more guaranteed pay, offer to forgo the RSUs (if any) in exchange for an extra 5k in salary. Or a smaller bonus for more salary.

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