How to Negotiate Your Salary: A Practical Guide That Actually Works

Most people leave between $1,000 and $5,000 on the table every time they accept a job offer without negotiating. Over a career, that adds up to hundreds of thousands of dollars in lost earnings. The reason? They either don’t know how to negotiate or they’re too uncomfortable to try.

Here’s what you need to know: employers expect negotiation. Studies show that 70% of hiring managers anticipate candidates will negotiate, and 84% of employers say they’re willing to negotiate on initial offers. When you don’t negotiate, you’re actually working against normal business practices.

This guide shows you exactly how to negotiate your salary effectively, whether you’re accepting a new job or asking for a raise at your current company. No fluff, no corporate-speak – just practical strategies that work.

Understanding Your Market Value

Before you negotiate anything, you need to know what you’re worth. This isn’t about self-esteem or personal value – it’s about understanding the going rate for your skills and experience in the current job market.

Where to Find Reliable Salary Data:

  • Glassdoor: Shows salary ranges by job title, company, and location with data from actual employees
  • Levels.fyi: Particularly good for tech roles with verified compensation data
  • PayScale: Offers personalized salary reports based on your specific situation
  • Bureau of Labor Statistics: Provides government data on median wages by occupation
  • Industry-specific surveys: Professional associations often publish annual salary surveys for members

How to Research Effectively:

Look for roles with your exact job title or similar responsibilities in your geographic area. Remote work has changed this somewhat – if the role is fully remote, research national averages rather than local ones.

Factor in these variables:

  • Years of experience in the field
  • Education level and certifications
  • Company size and industry
  • Geographic location (or remote work policies)
  • Specialized skills or expertise

Aim to collect data from at least 5-10 sources to get a realistic range. You’re looking for the 25th percentile (low end), median (middle), and 75th percentile (high end) for your role.

Preparing Your Negotiation Strategy

Good negotiation starts long before the actual conversation. Here’s how to prepare:

Document Your Value

Create a simple document that lists:

  • Specific achievements with quantifiable results (“Increased sales by 23%”, “Reduced costs by $50K annually”)
  • Skills that are in high demand
  • Certifications or specialized training
  • Awards or recognition you’ve received
  • Projects you’ve led or contributed to significantly

Determine Your Salary Range

Based on your research, establish three numbers:

  1. Walk-away number: The minimum you’ll accept (keep this to yourself)
  2. Target number: What you’re realistically aiming for
  3. Aspiration number: The top of what’s reasonable for your role

Your target should be about 10-20% above the initial offer you expect. This gives you room to negotiate while still landing in a good place.

Practice Your Talking Points

You don’t need to memorize a script, but you should be comfortable saying things like:

  • “Based on my research and the value I’ll bring, I was expecting something in the $X to $Y range.”
  • “Given my experience with [specific skill], I think $X is more appropriate for this role.”
  • “I’m excited about this opportunity. Can we discuss the compensation to make sure it reflects the responsibilities?”

How to Negotiate a New Job Offer

Step 1: Don’t Discuss Salary Too Early

If asked about salary expectations during screening calls, deflect politely:

  • “I’d like to learn more about the role and responsibilities before discussing compensation.”
  • “I’m flexible on salary and more interested in finding the right fit. What range did you have in mind?”
  • “Based on my research, roles like this typically range from $X to $Y. Does this position fall within that range?”

Step 2: Wait for a Written Offer

Never negotiate until you have a formal written offer. Verbal offers can change, and you’re in a much stronger position once they’ve committed to you in writing.

Step 3: Ask for Time to Review

When you receive the offer, don’t accept immediately (even if it’s great):

  • “Thank you for the offer. I’m excited about this opportunity. Can I have a couple of days to review everything?”

This is standard practice and shows you’re thoughtful about major decisions.

Step 4: Make Your Counter Offer

After reviewing, respond with enthusiasm first, then your ask:

“I’m really excited about joining the team and contributing to [specific project or goal]. I’ve reviewed the offer carefully, and I’d like to discuss the salary. Based on my experience with [specific skills] and the market rate for this role, I was expecting something closer to $[your target number]. Is there flexibility in the budget?”

What to Actually Say (Real Examples):

If the offer is 10-15% below your target: “Thank you for the offer of $65,000. I’m very interested in this position. Based on my five years of experience in project management and the specialized skills I’d bring, particularly in [specific area], I was expecting something in the $72,000-75,000 range. Is there room to get closer to that?”

If the offer is close but not quite there: “I appreciate the offer of $78,000. I’m excited about the role. To make this work, I’d need to be at $82,000. Can we make that happen?”

If they can’t budge on salary: “I understand the salary is fixed at $70,000. Are there other aspects of the compensation package we could discuss, such as the signing bonus, equity, or additional vacation days?”

Step 5: Negotiate the Entire Package

If base salary is non-negotiable, consider:

  • Signing bonus: One-time payment (often easier for companies to approve)
  • Performance bonus: Annual bonus tied to goals
  • Stock options or equity: Particularly valuable at growing companies
  • Additional vacation days: Usually 2-5 extra days is reasonable
  • Flexible work arrangements: Remote work days, flexible hours
  • Professional development budget: For courses, conferences, certifications
  • Earlier performance review: “Can we schedule a review in 6 months instead of 12?”

Step 6: Get Everything in Writing

Once you’ve agreed on terms, get an updated written offer that includes all negotiated elements. Don’t accept verbally until you have it in writing.

How to Negotiate a Raise at Your Current Job

Timing Your Request

Best times to ask for a raise:

  • After successfully completing a major project
  • During annual performance reviews
  • When you’ve taken on additional responsibilities
  • After the company announces strong financial results
  • When you’ve been offered another job (use carefully)

Worst times:

  • During company layoffs or financial struggles
  • Right after someone else was denied a raise
  • Before completing your probation period
  • During busy season when managers are overwhelmed

Building Your Case

Create a one-page document that includes:

  • Your current salary and requested salary
  • List of major accomplishments (last 12 months)
  • New responsibilities you’ve taken on
  • Market data showing comparable salaries
  • How you’ve exceeded expectations

Having the Conversation

Schedule a formal meeting with your manager. Don’t ambush them casually.

Opening: “I’d like to discuss my compensation. Over the past year, I’ve taken on [specific responsibilities] and delivered [specific results]. Based on my contributions and the market rate for this role, I’d like to discuss an adjustment to $[target number].”

If They Say Yes: “Thank you. When would this take effect, and can we get this confirmed in writing?”

If They Say No: “I understand. Can you help me understand what I’d need to accomplish to earn this increase? What specific goals or milestones would need to be met?”

If They Delay: “I appreciate you considering this. When can we schedule a follow-up conversation to discuss this further?”

What to Do If They Won’t Budge

Sometimes companies genuinely can’t give raises due to budget constraints. In that case:

  1. Ask for a timeline: “When would be a better time to revisit this conversation?”
  2. Request non-monetary benefits: Title change, flexible schedule, professional development budget
  3. Get specific feedback: “What would I need to accomplish to be considered for a raise in six months?”
  4. Consider your options: If the company can’t or won’t pay market rate, it might be time to look elsewhere

Common Salary Negotiation Mistakes

Mistake 1: Accepting the First Offer

About 55% of people never negotiate their salary. The first offer is rarely the best offer. Companies expect negotiation and often have room in the budget.

Mistake 2: Revealing Your Current Salary

In many states, it’s illegal for employers to ask about your current salary. Even if they ask, you can deflect: “I’m looking for a role in the $X range based on my skills and the market rate for this position.”

Your current salary is irrelevant to your market value. You might be underpaid now – that shouldn’t follow you to your next job.

Mistake 3: Negotiating Over Email (Initially)

Have the initial conversation on the phone or in person. Email negotiations can feel combative and lack nuance. Use email only to confirm what you’ve agreed to verbally.

Mistake 4: Being Apologetic

Don’t say: “I’m sorry to ask, but…” or “I hope this isn’t too much…”

You’re not asking for a favor. You’re negotiating a business transaction. Be confident and direct.

Mistake 5: Making It Personal

Don’t say: “I need $X because my rent increased” or “I have student loans to pay off.”

Personal financial needs aren’t relevant. Focus on your value to the company and market rates for your role.

Mistake 6: Negotiating Too Aggressively

There’s a difference between being confident and being difficult. Don’t:

  • Issue ultimatums unless you’re truly willing to walk away
  • Negotiate multiple times on the same points
  • Act entitled or demanding
  • Compare yourself negatively to colleagues

Mistake 7: Forgetting to Consider the Total Package

A lower salary with excellent benefits might actually be better than a higher salary with poor benefits. Calculate the total value:

  • Health insurance premiums and coverage
  • 401(k) matching
  • Paid time off
  • Bonuses and commissions
  • Stock options
  • Professional development budget
  • Commute costs (or remote work savings)

What If They Rescind the Offer?

This is the biggest fear people have about negotiating. The reality: this almost never happens at legitimate companies.

If a company rescinds an offer because you negotiated professionally and reasonably, you dodged a bullet. That’s a red flag about the company culture.

However, you can reduce this risk by:

  • Being professional and collaborative in your approach
  • Negotiating based on market data and your value, not arbitrary numbers
  • Expressing genuine enthusiasm for the role
  • Being reasonable in your requests

Special Situations

When You Have Multiple Offers

This is the best negotiating position. You can:

  1. Tell Company A: “I have another offer at $X. I prefer your company because of [specific reason]. Can you match or get close to that number?”
  2. Use specific numbers from one offer to negotiate with another
  3. Ask for faster decisions if you’re on a timeline

Don’t bluff about other offers. If they call your bluff, you’re done.

When You’re Currently Unemployed

Being unemployed doesn’t mean you can’t negotiate. You still have value. However:

  • Be more realistic about your target range
  • Consider asking for an earlier performance review instead of a higher starting salary
  • Factor in how long you can afford to keep looking
  • Don’t volunteer that you’re unemployed, but don’t lie if asked

When They Say “That’s Our Final Offer”

They might mean it, or they might be testing your resolve. If you’ve negotiated reasonably and they still say no:

  • Ask about non-salary items (bonus, vacation, flexibility)
  • Request a performance review in 6 months
  • Ask what you’d need to accomplish to earn more
  • Decide if you can accept the offer as-is or need to walk away

After You’ve Negotiated

If They Say Yes:

  • Thank them professionally
  • Get everything in writing
  • Don’t continue negotiating after you’ve agreed
  • Start planning your transition

If They Say No:

  • Thank them for considering it
  • Ask for feedback on what would need to change
  • Decide whether to accept the original offer or keep looking
  • Don’t burn bridges regardless of your decision

Following Up: Send a brief email thanking them for the conversation and confirming your understanding of the agreed-upon terms. This creates a paper trail and prevents misunderstandings.

The Bottom Line

Salary negotiation isn’t about being greedy or difficult. It’s about ensuring you’re paid fairly for the value you provide. Most employers expect it, respect it, and have room in their budgets for it.

The key principles:

  • Know your market value through research
  • Wait for a written offer before negotiating
  • Be confident but professional
  • Focus on value, not personal needs
  • Consider the total compensation package
  • Get everything in writing

Even a modest 5-10% increase from negotiating adds up to tens of thousands of dollars over the years. It’s worth the temporary discomfort of the conversation.

Remember: the worst they can say is no, and you’ll still have the original offer. But if you don’t ask, the answer is always no.