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Salary & Compensation
December 30, 2025
8 min read

Don't Leave Money on the Table: A Guide to Salary Negotiation

Don't Leave Money on the Table: A Guide to Salary Negotiation

Most companies expect you to negotiate your salary, yet many people don't. This guide provides the real-world strategies you need to confidently ask for your worth.

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You got the offer. The email lands in your inbox, and your heart does a little jump. You click it open, scan past the pleasantries, and there it is: the number. For a split second, you feel relief. Then, almost immediately, a wave of anxiety hits. Is this a good offer? Should I ask for more? What if they pull the offer?

If you've ever felt that, you're not alone. I’ve seen hundreds of professionals, from new grads to senior executives, freeze at this exact moment. They're so relieved to have the offer that they're terrified of jeopardizing it. So they accept. And in most cases, they leave money on the table.

Let’s get one thing straight: Negotiation is a standard part of the hiring process. Companies have a budget range for every role, and the initial offer is almost never at the top of that range. They expect a conversation. Your goal isn't to be adversarial; it's to have a collaborative business discussion about your market value. This is your first opportunity to demonstrate your communication and advocacy skills—qualities they just hired you for.

Phase 1: The Homework You Can't Skip

Confidence in negotiation comes from one place: preparation. Walking into the conversation armed with data changes everything. It shifts the dynamic from an emotional plea to a factual discussion.

Know Your Market Value

Before you ever speak to a recruiter, you need a clear understanding of what your skills are worth. Don't rely on a single source or a gut feeling. Triangulate your data from several reputable places:

  • Levels.fyi: Essential for the tech industry, providing verified, detailed breakdowns of salary, stock, and bonuses by company, level, and location.
  • Glassdoor and Payscale: Good for a broader market view across various industries. Look at the range, not just the average.
  • Industry-Specific Surveys: Many professional organizations (like the AIGA for designers or the IEEE for engineers) publish their own salary reports. These can be incredibly insightful.

When researching, be specific. A "Software Engineer" in San Francisco makes a different salary than one in Omaha. Factor in:

  • Job Title & Level: Senior vs. Junior, IC vs. Manager.
  • Industry: Tech, finance, healthcare, etc.
  • Company Size & Stage: A 50-person startup pays differently than a FAANG company.
  • Location: Cost of living and local market demand are huge factors.

Define Your Numbers

Once you have your data, establish three key numbers for yourself:

  1. The Walk-Away Number: This is your absolute floor. Below this number, the job is not financially viable or doesn't meet your needs. You must be willing to walk away if they can't meet it. This is for you, not for them.
  2. The Target Number: This is the realistic, well-researched number you’d be happy with. It should align with the market data for your experience level.
  3. The Aspirational Number: This is the top of the range, maybe 10-15% above your target. It's ambitious but still defensible based on your unique skills, competing offers, or the high end of your market research. This is the number you'll likely lead with.

Warning: The Premature Salary Question Recruiters will often ask for your salary expectations on the very first call. This is a tactic to anchor you low. Avoid giving a specific number. Instead, deflect gracefully. Try saying: "I'm still learning about the specifics of the role and the team, so it's a bit early to talk numbers. Right now, I'm focused on seeing if this is a great fit for both of us. From my initial research, roles like this in this market seem to be in the range of X to Y, and I'm confident we can find a fair number if we get to that stage."

Phase 2: The Conversation Begins

The offer is here. It’s time to engage. How you handle these next steps will set the tone for the entire negotiation.

Step 1: Receive the Offer and Pause

When you get the call or email, your first and only job is to be gracious and create space. Never accept, reject, or counter on the spot.

Your script is simple: "Thank you so much for the offer! I'm very excited about the opportunity to join the team. Could you send the full details over in writing so I can review them? I'll plan to get back to you by [a specific, reasonable time, e.g., 'end of day tomorrow' or 'in 48 hours']."

This accomplishes three things:

  1. It shows professionalism and enthusiasm.
  2. It prevents you from making an emotional, knee-jerk decision.
  3. It ensures you have the complete offer in writing, which is non-negotiable.

Step 2: Analyze the Total Compensation

Amateurs focus on base salary. Professionals assess the Total Compensation (TC) package. A lower base salary with incredible benefits and equity can be far more valuable than a high base with nothing else. Scrutinize every component:

  • Base Salary: The fixed part of your pay.
  • Performance Bonus: Is it guaranteed or discretionary? What was the average payout percentage for this role over the last few years?
  • Signing Bonus: A one-time bonus to get you in the door. This is often the most flexible lever for a company if they can't move on base salary.
  • Equity: Are they offering RSUs (common in public companies) or stock options (common in startups)? Understand the vesting schedule (e.g., a 4-year vest with a 1-year cliff) and the current valuation. For more on this, Holloway's Guide to Equity Compensation is an excellent resource.
  • Benefits: What is the quality of the health insurance (premiums, deductibles)? Is there a 401(k) match? How much? What about paid time off, parental leave, and professional development stipends?

Step 3: Build and Deliver Your Counteroffer

This is the moment of truth. You can do this over the phone (preferred, as it's more personal) or via a well-crafted email.

Your counter should be structured and confident:

  1. Reiterate Your Excitement: Start with genuine enthusiasm. "Thank you again for the offer. I've had some time to review it, and I'm even more excited about the possibility of joining and contributing to [specific project or goal]."
  2. State Your Case (The 'Why'): This is where you connect your value to their needs. Don't talk about your personal expenses. Talk about the value you bring. "Based on my experience in [Skill X] and my track record of delivering [Result Y], combined with my market research for this level of role in [City], I was expecting a compensation package closer to [Your Aspirational Number]."
  3. Make the Ask: Be direct and specific. Instead of saying, "I was hoping for more," say, "Based on those factors, I would be thrilled to accept if you could get the base salary to $130,000." State a number, not a range. Giving a range invites them to the bottom of it.

Pro Tip: The Power of Silence After you state your number, stop talking. The silence might feel uncomfortable, but it's a powerful negotiation tactic. It puts the ball in their court and prompts them to respond. Don't rush to fill the void by justifying yourself further. Make your case, state your number, and wait.

Phase 3: The Final Steps

The company will respond in one of a few ways: they'll accept your counter, they'll say no, or they'll meet you in the middle. This is the final dance.

What If They Can't Budge on Salary?

If the hiring manager says, "I'm sorry, but this is the top of the band for this role," don't give up. This is your chance to show you're a creative problem-solver.

Pivot to other parts of the package. You could say: "I understand that the base salary might be firm. Given that, would it be possible to explore a signing bonus of $10,000 to help bridge the gap? Or perhaps we could look at an additional equity grant?"

Other negotiable levers include:

  • An earlier performance review (e.g., at 6 months instead of 12).
  • A guaranteed professional development budget.
  • Additional vacation days.
  • A flexible work or remote arrangement.

Knowing When to Accept

Negotiation isn't about squeezing every last drop out of the company. It's about reaching a fair, mutually agreeable outcome. If they've made a significant move that meets or comes very close to your target number, and you're excited about the role, it's usually time to accept.

Once you agree verbally, reiterate your excitement and ask for the revised offer in writing.

Key Takeaway: Get It All in Writing A verbal agreement is not an offer. Do not, under any circumstances, resign from your current job until you have the final, updated offer letter in your hands with all the agreed-upon terms. I've seen verbal promises disappear during a leadership change or budget shuffle. Protect yourself.

This process might feel intimidating, but it's a skill like any other. It gets easier with practice. By doing your research, knowing your worth, and approaching the conversation as a collaborative partner, you're not just fighting for a better salary. You're establishing your value from day one and setting the tone for a successful relationship with your new employer. You've earned it. Now go get it.

Tags

salary negotiation
job offer
career advice
compensation negotiation
negotiation tips
total compensation
job search

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