Competing Against FAANG Offers When You Can't Match Big Tech Comp

Let's be honest: you're not outbidding Google.

Your Series B startup is offering $180K total comp. The candidate just got a Google offer for $380K. Meta countered at $425K. Your hiring manager is asking why you can't close them.

You can't. Not on salary.

But here's the thing: 37% of candidates who receive FAANG offers still choose startups or mid-sized companies. Not because they're bad at math. Because compensation isn't everything.

Here's how to compete when you can't match Big Tech money.

Stop Pretending You Can Compete On Total Comp (You Can't)

The worst strategy: trying to justify why your offer is "actually comparable" when it's not.

❌ "But our equity could be worth..." ❌ "If you calculate cost of living..." ❌ "Our benefits package includes..."

Candidates aren't stupid. They know $180K isn't $380K. Trying to math your way into equivalence makes you look desperate and dishonest.

The better approach: acknowledge reality early.

"Look, I'm not going to pretend we can match a FAANG offer on total comp. We can't. If maximizing short-term earnings is your top priority, Google is the right choice and I respect that. But if you're optimizing for [impact/learning/growth/ownership], here's why our offer might actually be better."

This disarms the compensation objection by acknowledging it upfront. You're no longer fighting a losing battle on dollars—you're shifting to winnable ground.

What Big Tech Can't Offer (That You Can)

The three advantages you actually have:

1. Impact and Ownership

At Google, this candidate will be Engineer #47 on a team of 200 working on a feature that might ship in 18 months. At your startup, they'll own entire product areas and ship weekly.

How to sell it:

"At Google, you'd be working on [specific feature/product] with a massive team and layers of approval. Here, you'd be the technical lead for [specific area], working directly with our CTO, making architectural decisions, and seeing your work in production within days. Which sounds more interesting to you?"

Engineers who care about impact respond to specificity. Don't say "you'll have more impact here"—describe exactly what they'll own and build.

2. Learning Velocity and Career Acceleration

Big Tech engineers specialize. Startup engineers become generalists. The learning curve at a startup is 3-5x steeper.

How to sell it:

"In 2 years at Meta, you'll become an expert in [narrow specialty]. In 2 years here, you'll have built full-stack features, worked across the entire product, influenced company strategy, and probably worn 5 different hats. If your goal is to start your own company someday or become a VP of Engineering, which experience gets you there faster?"

This resonates with ambitious candidates who see Big Tech as a career plateau. You're positioning your startup as the faster path to their long-term goals.

3. Equity Upside (But Be Realistic)

The wrong way to sell equity:

"Our equity could be worth millions!" (Maybe. Probably not. They know this.)

The right way to sell equity:

"Here's our current valuation, here's the equity you'd receive, here's our growth trajectory. If we exit at [realistic scenario], your equity would be worth [realistic amount]. If we hit [optimistic but possible scenario], it could be worth [optimistic amount]. There's real risk here—most startups fail. But if we succeed, this equity could meaningfully change your financial picture in a way FAANG RSUs won't."

Candidates respect honest equity conversations. Transparency about risk builds credibility.

The Conversation Framework

When a candidate mentions they're talking to FAANG:

Step 1: Acknowledge reality "That's a great opportunity. FAANG comp packages are hard to beat, and I'm not going to pretend we can match them."

Step 2: Ask what they're optimizing for "Can I ask—what's most important to you in your next role? Is it maximizing total comp, or are there other factors that matter too?"

Step 3: Position your advantages against their priorities

If they say comp is #1: "Totally fair. If maximizing earnings is your top priority, FAANG is probably the right choice. If anything changes or the role doesn't work out, I'd love to stay in touch."

Don't waste time fighting an unwinnable battle. Some candidates are purely comp-motivated, and that's okay.

If they mention impact, learning, or growth: "That's exactly where I think we have an advantage. Let me tell you specifically what you'd own here and how that compares to what you'd work on at [FAANG company]."

Step 4: Make them visualize the difference

"Picture yourself one year from now. At Google, you've shipped one feature after navigating multiple layers of review and working on a massive team. Here, you've shipped dozens of features, made architectural decisions that shaped our product, worked directly with our CEO on roadmap, and your work is used by thousands of customers. Which version of yourself is more excited to wake up and work?"

Visualization makes abstract differences concrete.

What Not To Say

❌ "FAANG is boring and bureaucratic": They might love structure. Don't insult their other option.

❌ "You'll just be a cog in the machine": Condescending and often inaccurate.

❌ "Our equity will definitely be worth more": You don't know this. Neither do they. Don't lie.

❌ "FAANG engineers aren't as good as startup engineers": Elitist and untrue. Many great engineers choose Big Tech for good reasons.

When You Can't Win (And That's Okay)

Some candidates will choose FAANG. Accept it gracefully.

"I completely understand—that's an incredible offer and a great opportunity. I hope it works out, and if anything changes or you're ever looking for something different down the road, I'd love to reconnect."

Staying classy when you lose builds long-term relationships. That candidate might hate Big Tech in 18 months and remember you were respectful.

40% of engineers leave Big Tech within 2 years. Your pipeline for experienced startup-ready engineers is literally people currently at FAANG who are realizing it's not for them.

The Bottom Line

You can't beat FAANG on compensation. Stop trying.

What you can do:

✅ Acknowledge reality: you can't match their numbers ✅ Shift the conversation to impact, ownership, and learning velocity ✅ Be specific: don't say "more impact," describe exactly what they'll own ✅ Position your role as the faster path to their long-term career goals ✅ Be honest about equity: realistic upside with acknowledged risk ✅ Ask what they're optimizing for—if it's purely comp, gracefully exit ✅ Make them visualize the day-to-day difference between options

The candidates you win against FAANG won't be the ones chasing maximum dollars. They'll be the ones who value ownership, impact, and accelerated growth.

And honestly? Those are the people you want anyway.

Sources:

The Daily Hire