Guide: How to Negotiate Salary

Difficulty: Hard Time Required: 2–3 hours preparation + 30-minute negotiation

Negotiating your salary is one of the highest-return skills you can learn. A successful negotiation can earn you $5,000–$15,000 more per year, which compounds over your career. Most employers expect you to negotiate and often have budget room built in. This guide walks you through preparing for and conducting a salary negotiation professionally and effectively.

What You'll Need

Materials:

• Market research on typical salaries for your role and location
• Your current salary (if employed) or desired salary range
• List of your achievements, skills, and value you bring
• Notepad or document for taking notes during conversation
• Calm, professional mindset

Prerequisites:

• Job offer in hand (or performance review scheduled for raise discussion)
• Knowledge of your minimum acceptable salary
• Understanding of your total compensation (not just base salary)
• Confidence that you're worth what you're asking

Step-by-Step Instructions

Step 1: Research market rates for your role

Use sites like Glassdoor, Payscale, Levels.fyi, or LinkedIn Salary to find typical compensation for your job title, experience level, and location.

• Look at 10–15 data points to get a realistic range
• Factor in company size, industry, and cost of living
• Aim for the 50th to 75th percentile if you're experienced and strong performer

Step 2: Determine your target number and walk-away minimum

Based on market research and your financial needs, decide:

• Your ideal salary (what would make you very happy)
• Your target salary (what you'll ask for)
• Your minimum acceptable salary (below which you'll decline)

Your target should be 10–20% above the initial offer or your current salary.

Step 3: Wait for them to make the first offer

When asked about salary expectations, deflect politely:

• "I'd like to learn more about the role first"
• "I'm sure you have a budget in mind—what range are you targeting?"

Making them state a number first gives you negotiating power. If forced to give a number, provide a range with your target as the bottom.

Step 4: Don't accept immediately—always ask for time

When you receive an offer, express enthusiasm but don't accept on the spot. Say:

• "Thank you, I'm excited about this opportunity. Can I have a couple days to review the details?"

This gives you time to evaluate, research, and prepare your counteroffer without pressure.

Step 5: Build your case with specific value

Prepare 3–5 concrete examples of value you've created:

• "I increased sales by 30%"
• "I reduced processing time by 40%"
• "I led a team that delivered Project X under budget"

Tie these to how you'll contribute to the new role. Data and specifics are more convincing than "I work hard."

Step 6: Make your counteroffer professionally

Call or schedule a video meeting (email is less personal).

• Start positive: "I'm very excited about joining the team."
• Then state your ask: "Based on my research and the value I bring, I'm targeting $X. Can we make that work?"

Use a confident, collaborative tone—not demanding, not apologetic.

Step 7: Negotiate total compensation, not just base salary

If they can't budge on base salary, ask about:

• Signing bonus (one-time payment)
• Stock options or equity
• Annual bonus potential
• Extra vacation days
• Flexible work arrangements
• Professional development budget
• Relocation assistance
• Earlier first performance review

These add real value.

Step 8: Get the final offer in writing

Once you've agreed on terms, ask for a written offer letter or employment contract that includes:

• Base salary
• Start date
• Bonus structure
• Benefits details
• Stock/equity if applicable
• Any negotiated extras

Don't give notice at your current job until you have this in writing.

Step 9: Accept graciously or decline professionally

If the final offer meets your needs, accept enthusiastically:

• "I'm thrilled to accept. I'm looking forward to joining the team on [date]."

If it doesn't meet your minimum, decline politely:

• "I appreciate the offer, but I can't accept at this compensation level. I wish you success finding the right candidate."

Common Mistakes to Avoid

• Accepting the first offer without negotiating: About 70% of employers expect candidates to negotiate and build wiggle room into initial offers. Not negotiating leaves money on the table. Even if they say no, you lose nothing by asking professionally.
• Negotiating before you have a written offer: Don't discuss salary in early interviews. Wait until they've decided they want you and extended an offer. Negotiating too early can price you out before they're invested in hiring you.
• Justifying your ask with personal expenses: Don't say "I need $X because of my rent/student loans/lifestyle." Employers pay for value you bring, not your bills. Frame everything around market rates and what you contribute, not what you need.
• Getting emotional or apologetic: Don't apologize for asking or get defensive if they pushback. Treat it as a business discussion: "I understand the budget constraints. Is there flexibility in total compensation?" Stay calm and collaborative, not combative or desperate.
• Negotiating for a raise without leverage: If asking for a raise at your current job, do it after a major win, not during a performance slump. Time your ask strategically: after successful project completion, positive review, or when you've taken on new responsibilities.

Pro Tips

• Anchor high but reasonable: Studies show the first number mentioned influences the final deal. If they ask your range, start with a number 15–20% above your target. They'll negotiate down, but you'll land higher than if you'd started at your target.
• Practice out loud: Rehearse your negotiation conversation with a friend or in the mirror. Saying "I'm targeting $95,000" out loud feels different than thinking it. Practice reduces nervousness and helps you sound confident when it matters.
• Use silence strategically: After stating your counteroffer, stop talking. The first person to speak usually concedes. Let them process and respond. Silence feels uncomfortable, but it works—don't fill it by lowering your ask.
• Know when to walk away: If the offer is below your minimum and they won't budge, be willing to decline. Accepting a lowball offer leads to resentment and you'll be underpaid from day one, which compounds over time through smaller raises.
• Negotiate raises every 1–2 years: Don't wait for your employer to offer raises. Proactively schedule a conversation annually to discuss your compensation based on your growing skills and contributions. Job-hoppers earn 10–20% more than those who stay put without negotiating.

Related Skills

• How to Write a Resume That Gets Noticed
• How to Prepare for a Job Interview
• How to Evaluate a Job Offer
• How to Plan a Career Path