Netflix Salary Negotiation Guide
Considering a job at Netflix? Want to get the most out of your compensation, salary, and benefits?
Negotiating a salary at Netflix can be a bit challenging.
Netflix always offers competitive compensation to attract the best talent. That means you don’t need to worry about being lowballed.
The flip side is that you may find Netflix hiring managers are firm in their offers, making it difficult to negotiate further.
But that doesn’t mean you shouldn’t still try!
This guide will walk you through negotiating your salary at Netflix, from researching the company and industry standards to preparing for the negotiation and closing the deal.
How is compensation calculated at Netflix?
Here's how Netflix compensates its employees.
In 2023, Netflix implemented a leveling system that plays a role in a candidate’s compensation offer.
Netflix offers both a base salary and stock options in their total compensation.
In particular, Netflix’s stock option plan is unique compared to other companies.
Netflix is very competitive with its salary offers. Entry-level software engineers receive, on average, $205,000/year in base salary.
Netflix does not have a habit of lowballing their candidates, so you may find hiring managers less open to negotiating than at other companies.
At the same time, you may not feel disappointed with the offers you receive from the company.
Many tech companies offer RSUs, or Restricted Stock Units, in their compensation. RSUs are an award of stock shares granted to employees once they meet certain conditions after a certain amount of time, or according to the “vesting schedule,” in other words.
You may receive an offer for a particular value of RSUs in your hiring contract. However, you don’t actually receive that value until the RSUs vest.
However, Netflix allows their candidates to use part of their salaries to purchase stock options instead of RSUs. Specifically, candidates can earmark whatever percentage of their base salary they choose towards options worth 40% of the value of NFLX stock.
Stock options are contracts that allow you to purchase shares of stock at a particular price, regardless of its current market price.
These stock options last ten years and are fully vested. Not only that, you are not required to exercise them if you leave the company.
Stock options example:
You use $2,400 of your Netflix salary to purchase options. If NFLX trades at $300/share, you can buy options for $120 a piece (40% of current market value).
In this case, you can buy 20 options using your $2,400.
So long as the NFLX stock price increases, you can exercise these options to make some money. For example, if the share price went up to $500/share, you could exercise your options, purchase 20 shares at $300/share ($6,000 total), and then sell them for $500/share ($10,000 total) if you choose.
In doing so, you would generate $4,000. But remember that, at the start, you needed to pay $2,400 to get these options. So, your net profit would be $1,600 from this whole transaction.
Of course, you don't need to sell your shares. You can also exercise your options and hold the stock as long as you want.
We know stock options can be very confusing and risky. This article provides a good breakdown of Netflix stock options.
Take time to fully understand how stock options work in general and at Netflix before deciding how much of your salary to allocate to them.
Along with salary and stock options, Netflix offers candidates many generous benefits.
- Healthcare: Netflix offers employees $15,000 each year for health-related expenses, whether they be medical, dental, or vision. Employees can also receive some of this money back if they do not use the entire $15,000. This sum is not negotiable.
- 401k: Netflix has 401k plans and will match employee contributions up to 4%.
- Flexible work schedule: A significant part of Netflix's company culture is a very flexible working schedule. The company does not mandate a strict 9-5 schedule. Instead, you can choose what works best for you and your performance.
- Paid time off & vacations: Netflix is generous and encouraging of time off for their employees. Netflix offers their candidates unlimited PTO.
- Child care & parental leave: Netflix allows employees as much parental leave as they need when having a new baby.
- Perks: Netflix also provides several other perks to their employees. For example, free breakfast and lunch, various mental health programs, relocation benefits, a ridesharing program, remote work opportunities, and more.
Negotiating your salary at Netflix
Ready to learn how to negotiate your salary and compensation package at Netflix?
Research the company & industry standards
Before you begin any salary negotiation, have a good understanding of the company and industry standards. This will give you the necessary information to set realistic expectations and make a strong case for your desired compensation.
- Review internal docs: For Netflix, start by reviewing the company’s website and any public information about its compensation policies, such as job postings and employee reviews on Glassdoor.
- Check similar roles and salaries: Look for the typical salary ranges for the role you’re applying for or currently hold, along with any benefits or perks offered.
- Research your market rate: Look at salary surveys and reports from reputable sources, such as the Bureau of Labor Statistics or Payscale, to see the average salary for your position and experience level.
By gathering this information, you’ll better understand what to expect and what a fair salary would be for your role. It will also help you negotiate more confidently, knowing you have a solid understanding of the market rate.
Prepare for your negotiation
Once you have a solid understanding of the company and the market rate for your role, it’s time to prepare for the negotiation.
Here are some steps to take:
- Identify your strengths and weaknesses: Understand your value and what makes you stand out as a candidate. Be ready to articulate your accomplishments and how they align with Netflix’s goals and cultural values.
- Set realistic salary expectations: Based on your research, have a clear idea of your targeted salary range and be ready to explain why that range is fair and reasonable.
- Practice your negotiation skills: Negotiating your salary can be nerve-wracking, so you must practice beforehand. Role-play with a friend or mentor, or even in front of a mirror, to get comfortable with the conversation.
- Prepare your arguments: Be prepared to back your position with facts and figures from your research.
- Be flexible: Be open to compromise and be ready to find a middle ground that works for you and the company. Remember that the goal is to find a mutually beneficial agreement.
Following these steps, you’ll be well-prepared and ready to negotiate your salary at Netflix. Remember to stay calm and confident, and don’t be afraid to ask for what you deserve.
The negotiation process
Now that you’ve researched and prepared for the negotiation, it’s time to sit down and discuss your salary with Netflix.
- Start the conversation: Begin by expressing your interest in continuing to work at Netflix and your enthusiasm for the role.
- State your case: Clearly and confidently state your desired salary and explain why you believe it is fair and reasonable, using the research and arguments you prepared.
- Address objections: Be prepared to address any objections or counter offers that Netflix may have. Listen carefully to their perspective and be ready to compromise.
- Close the deal: Once you’ve reached an agreement, get the offer in writing. And remember to thank your interviewer for their time and consideration.
Salary negotiation is a dialogue, not a monologue.
Listen to Netflix’s point of view and respond accordingly. Remember to stay calm and professional throughout the process, and don’t hesitate to take some time to think if you need it.
By following these steps and being prepared, you’ll be able to negotiate your salary at Netflix and secure the compensation you deserve.
Ace the Netflix interview and increase your offer
It may be more challenging to negotiate your salary at Netflix than at other companies because hiring managers routinely offer competitive or top-of-market compensation to their candidates.
Given how generous they feel their opening position is, they may be unwilling to negotiate much more during the recruiting process.
However, increasing your offer is still possible, especially if you perform well in your interviews and develop a strong rapport with the hiring manager.
Hiring managers wield considerable influence in the talent acquisition process and with the hiring committee. They are much more willing to boost your offer if they like you and want you on their teams.
There’s no better way to practice mock negotiations than with an expert interview coach and salary negotiator at Exponent.
Exponent interview coaches have a 99% success rate for hundreds of offers at companies like Netflix, Amazon, Google, Microsoft, and more.