Negotiating your salary
Research the market, wait for the offer, negotiate the whole package, and see why a few thousand more at the start keeps paying for years.
Research the range first
- Salary surveys and salary websites
Look up pay for your role. Filter hard: the same job title can pay very differently by level, industry and city.
- Job ads that show pay
Some ads list a range, and some places require it by law. Collect a handful for similar roles near you.
- People and recruiters
Ask people in similar roles what range is normal (not what they earn). Recruiters often know the going rate and may tell you.
- Write down a range and its sources
Aim for a range for this role, level and city, like Sara's $55,000-$65,000. This is your objective criteria (lesson 3): numbers you can point to, not just numbers you want.
Two people start the same job. One accepts $50,000.
The other negotiates $54,000. Both get 3% raises a year.
Year $50,000 start $54,000 start Gap
1 50,000 54,000 4,000
2 51,500 55,620 4,120
3 53,045 57,289 4,244
5 56,275 60,777 4,502
10 65,239 70,458 5,219The gap grows every year, because each raise
is a percentage of a bigger base.
Added up over 10 years: about $45,900 more
(4,000 x about 11.46).Future raises and bonuses are often a percentage of base pay, so one conversation at the start keeps paying. Real careers vary: raises aren't guaranteed and people change jobs. But the direction holds.
Check yourself
Negotiating a starting salary $4,000 higher is worth $4,000 to you, no more.
Show the answer
False
False. With raises that are a percentage of base pay, the gap grows every year. At 3% raises, a $4,000 difference adds up to about $45,900 over ten years, and bonuses or pension contributions based on salary can add more.
TIMING
Talk numbers once they want you
Your position is strongest after they've decided they want you, which usually means once there's an offer. Before that, you're one of several candidates. If they ask early for your expectations, you have two honest options: deflect politely and ask for their range, or give a researched range with your target at the bottom of it (lesson 4), since they'll hear the bottom.
"I'd like to learn more about the role first. What range has been budgeted for it?" Or: "From market data for this role in this city, I'm looking at $63,000 to $67,000."
Check yourself
In her first interview, Sara is asked, "What are your salary expectations?" What's her best reply?
- "Whatever you think is fair."
- "I currently earn $52,000, so a bit more than that."
- "I'd like to learn more about the role first. What range has been budgeted?"
- "I have another offer at $70,000." (She doesn't.)
Show the answer
"I'd like to learn more about the role first. What range has been budgeted?"
Yes. It's polite and honest, and it keeps numbers for later, when they want her. Giving a researched range with her target at the bottom would also be reasonable.
When the offer arrives
- Thank them and show you're keen
"Thank you, I'm really excited about this role." Enthusiasm isn't weakness; it tells them the deal is likely, which makes them willing to work for it.
- Ask for a day or two
"Could I have until Thursday to look at the details?" Taking time is a form of silence (lesson 6). Almost every employer expects it.
- Counter with a number and a reason
"Based on market data for this role in this city, and my experience leading two product launches, I'm asking for $64,500." A specific number with a reason, then stop talking.
- Get the final offer in writing
Salary, start date and anything else you agreed, in the offer letter or contract, before you resign from your current job (lesson 12).
Check yourself
Put Sara's response to the offer in order: match each step to its place
Show the answer
- First → Thank them and show enthusiasm
- Second → Ask for a day or two to review
- Third → Counter with a number and a reason
- Fourth → Confirm the final offer in writing
Salary is only one line of the package
- Money beyond base: bonus, sign-on bonus, pension or retirement contributions.
- Time: start date, annual leave, remote days, flexible hours.
- Growth: title, training budget, an earlier salary review (say, at six months).
- Tools: equipment, a phone or travel allowance.
- If the base really is fixed, move to the other issues (lesson 8): "If the base is fixed, could we look at an extra week of leave and a six-month review?"
Check yourself
The employer tells Sara the base salary is fixed by a company-wide pay scale. What's her best next step?
- Accept immediately; there's nothing left to negotiate
- Negotiate other parts of the package, such as leave, a six-month review or a training budget
- Tell them she'll turn the job down unless the base moves, though she wouldn't
- Ask again for a higher base in slightly different words
Show the answer
Negotiate other parts of the package, such as leave, a six-month review or a training budget
Right. A fixed base doesn't mean a fixed package. Trading on other issues often gets real value, and an earlier review can move the base sooner.
ALREADY IN THE JOB
Asking for a raise
The same method works at a job you already have. Keep a record of results through the year: numbers, projects, praise from clients or colleagues. Time it well: around review season, or just after a clear win. Ask for a meeting about pay rather than raising it in passing. And base the case on your value and market data, not on personal needs like rent going up: your manager can defend value to their boss; they can't defend need.
"Since March I've taken over the supplier accounts and cut late deliveries by a third. Market data for this role is now $58,000-$62,000. I'd like to discuss moving to $60,000."
Check yourself
- Sara replies to the $58,000 offer: "Thanks so much. I was sort of hoping for a bit more, if that's possible?" The recruiter says, "I'll see what I can do," and comes back with $59,000.
- Sara replies to the $58,000 offer: "Thank you, I'm excited about this. Based on market data of $55,000-$65,000 for this role here, and my launch experience, I'm asking for $64,500." The recruiter comes back with $62,500.
What made the second reply work better?
- It was longer
- It gave a specific number with a reason the recruiter could take to their manager
- It sounded less grateful
- It threatened to walk away
Show the answer
It gave a specific number with a reason the recruiter could take to their manager
Yes. "A bit more" gives no anchor and no justification, so a small bump satisfies it. A precise, researched number sets a high anchor, and the reason gives the recruiter an argument to use internally.
Lesson recap
- Research a range for this role, level and city from several sources; it's your objective criteria.
- Starting pay compounds: at 3% raises, $4,000 more at the start adds up to about $45,900 over ten years.
- Many people never ask; asking politely is normal. Talk numbers once there's an offer, or give a range with your target at the bottom.
- Thank them, ask for a day, counter with a number and a reason, and get the final offer in writing.
- Negotiate the whole package: if the base is fixed, trade on leave, reviews, training and the rest.
- Prep-sheet line: market range and sources; my ask; the other package items I'd trade for.