Salary Negotiation
The process of discussing and agreeing upon compensation for a job, including base pay, bonuses, and benefits.
Salary negotiation is one of the highest-ROI activities in your career. A single successful negotiation can be worth tens of thousands of dollars over your career through compound raises. Yet most people either don't negotiate or do so ineffectively. This guide covers proven strategies for maximizing your compensation.
When to Negotiate
The best time to negotiate is after receiving a job offer but before accepting. You can also negotiate during annual reviews, after significant achievements, when taking on new responsibilities, or when you have competing offers. Never negotiate before receiving an offer—let them make the first move.
Researching Your Worth
Effective negotiation starts with data. Research salary ranges for your role, location, and experience level using sites like Glassdoor, Levels.fyi, and industry surveys. Understand the total compensation package: base salary, bonuses, equity, benefits, and perks all have value.
The Negotiation Conversation
Express enthusiasm for the role first. Present your counter-offer with confidence and justification. Use phrases like 'Based on my research and experience...' or 'I was hoping for something closer to...' Be specific with numbers. If they can't meet your ask, explore other components: signing bonus, equity, flexible work, professional development budget.
Common Mistakes to Avoid
Don't share your current salary if you can avoid it—many states now prohibit employers from asking. Don't accept immediately—take time to evaluate. Don't make ultimatums unless you mean them. Don't negotiate just on salary—consider the whole package. Don't undersell your value out of fear.
Examples
New Job Offer
'Thank you for the offer. I'm excited about this opportunity. Based on my research and the value I'll bring, I was hoping for a base salary closer to $X. Is there flexibility there?'
Annual Review
'Given my contributions this year, including [specific achievements], I'd like to discuss adjusting my compensation to better reflect my value to the team.'
Key Takeaways
- 1Practice your negotiation conversation with a friend or coach
- 2Get the offer in writing before negotiating
- 3Negotiate for the role, not your personal circumstances
- 4Be prepared to walk away if the offer doesn't meet your minimum
- 5Follow up negotiations in writing to confirm agreements
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