Salary Negotiation

Overview

Systematic approach to negotiating job offers that maximizes total compensation while maintaining relationships and ensuring mutual satisfaction.

Steps

Step 1: Research market compensation

Gather data on what the role pays:

1. Salary databases:

   • levels.fyi (tech, very accurate)
   • Glassdoor (broad but sometimes outdated)
   • Payscale, Salary.com (traditional industries)
   • Blind (tech, anonymous data)
   • LinkedIn Salary Insights

2. Industry sources:

   • Professional association surveys
   • Recruiting firm salary guides
   • Job postings with salary ranges

3. Network intelligence:

   • Ask people in similar roles (carefully)
   • Recruiters can share ranges
   • Informational interviews

4. Adjust for factors:

   • Location (cost of living)
   • Company size and stage
   • Industry norms
   • Your experience level

Determine:

• Market range for role (25th, 50th, 75th percentile)
• Where you should fall in that range
• Total comp, not just base

Step 2: Analyze the offer

Break down what they’re offering:

1. Calculate total compensation:

   • Base salary
   • Signing bonus (if any)
   • Annual bonus (target × expected payout)
   • Equity (annual value, accounting for vesting)
   • Benefits value (especially if you can quantify)

2. Compare to market data:

   • Where does total comp fall in range?
   • Which components are above/below market?
   • What’s the split (base heavy vs equity heavy)?

3. Identify negotiation opportunities:

   • Components below market
   • Areas with likely flexibility
   • Non-monetary items that matter to you

4. Assess your leverage:

   • How much do they want you specifically?
   • What’s your BATNA worth?
   • Are there competing offers?
   • How urgent is their hiring need?

Step 3: Define your targets

Set clear negotiation goals:

1. Determine your walk-away point:

   • Minimum acceptable total compensation
   • Must-have terms (non-negotiable)
   • Based on BATNA value

2. Set your target:

   • Best realistic outcome
   • Justified by market data
   • Accounts for your experience and leverage

3. Set your opening ask:

   • Ambitious but defensible
   • Usually 10-20% above their offer
   • Or at 75th percentile of market range

4. Plan your negotiation priorities:

   • Most important component to improve
   • Secondary asks
   • Nice-to-haves you can concede

Remember:

• Don’t anchor too high (seem unreasonable)
• Don’t anchor too low (leave money on table)
• Have justification ready for your number

Step 4: Plan your approach

Develop negotiation strategy:

1. Timing:

   • Express enthusiasm first, then negotiate
   • Get full offer details before countering
   • Don’t rush; take time to consider
   • Typical timeline: 2-7 days to respond

2. Communication channel:

   • Phone/video for discussion, email for confirmation
   • Write your points in advance
   • Practice delivery

3. Frame positively:

   • Express genuine enthusiasm
   • Position as collaborative problem-solving
   • Use “we” language (“how can we get to X?”)

4. Script your key points:

   • Opening: Thanks and enthusiasm
   • Ask: Specific number with brief justification
   • Handle pushback: Prepared responses
   • Alternative asks: If base is capped

5. Prepare for their moves:

   • “This is our best offer” -> ask about non-base items
   • “Budget is fixed” -> ask about signing bonus or early review
   • “Take it or leave it” -> ask for time, test if real

Step 5: Execute negotiation

Have the negotiation conversation:

1. Opening: “Thank you so much for the offer. I’m really excited about this opportunity and [specific reason]. I’ve had a chance to review the details and would like to discuss the compensation.”

2. Make your ask: “Based on my research and the value I’ll bring, I was hoping we could get to $X for the base salary. I’m seeing similar roles in the $X-Y range, and given [your specific value], I believe this is fair.”

3. Listen and respond:

   • If yes: Express thanks, confirm in writing
   • If counter: Consider, don’t immediately accept
   • If no: Explore alternatives

4. Explore alternatives if base capped: “I understand there may be constraints on base. Are there other ways to bridge the gap? Perhaps a signing bonus, additional equity, or accelerated review timeline?”

5. Never accept verbally on the spot: “Thank you. I’d like a day to review the full package and discuss with my family. Can we connect tomorrow?”

Red lines:

• Don’t lie about other offers
• Don’t make ultimatums you won’t keep
• Don’t be aggressive or entitled
• Don’t negotiate forever (1-2 rounds is typical)

Step 6: Close and document

Finalize the agreement properly:

1. Get it in writing:

   • Request updated offer letter with all negotiated terms
   • Review every number and term carefully
   • Confirm start date, title, reporting structure
   • Check for anything missing or different

2. Before accepting:

   • Compare final offer to your walk-away point
   • Consider non-monetary factors (growth, culture, work)
   • Trust your gut on overall fit

3. Accept professionally:

   • Written acceptance
   • Express enthusiasm
   • Confirm next steps

4. Handle declined offers:

   • Thank them professionally
   • Keep door open for future
   • You may cross paths again

5. Wrap up:

   • Give proper notice at current job
   • Don’t burn bridges
   • Prepare for new role

When to Use

• Received a job offer (external or internal)
• Annual compensation review conversation
• Promotion with compensation adjustment
• Counter-offer situation
• Significant responsibility increase

Verification

• Researched market rates from 3+ sources
• Calculated total compensation, not just base
• Defined walk-away point before negotiating
• Prepared specific ask with justification
• Got final offer in writing before accepting
• Final package meets or exceeds walk-away

Input: $ARGUMENTS

Apply this procedure to the input provided.