Receiving a job offer feels like the finish line. It is also the moment when you have the most leverage to negotiate pay. Many candidates accept the first offer, even though employers often expect some negotiation.
Key Takeaways
- Research pay using multiple sources, including posted ranges required by pay transparency laws in some states and cities.
- Let the employer share a range first when possible, or give a researched range yourself.
- Base your counteroffer on market data and the value you bring, not personal expenses.
- Get the final offer in writing.
Research the market
Sources include:
- Job postings with salary ranges. Several US states and cities require employers to include pay ranges in postings.
- Salary surveys and government data, such as the Bureau of Labor Statistics occupational wage data.
- Salary sites with self-reported data.
- Professional networks and recruiters.
Consider location, experience, company size and industry.
Sharing expectations
If asked early about salary expectations:
- Ask for the role’s budgeted range.
- If pressed, provide a range based on research, with your target near the lower middle of what you would be happy with.
Some jurisdictions prohibit employers from asking about salary history. Focus on expectations rather than past pay.
Evaluating the offer
Look at total compensation:
- Base salary
- Bonuses
- Equity
- Retirement contributions
- Health insurance costs
- Paid time off
- Flexibility and remote work
Making a counteroffer
- Express enthusiasm for the role.
- Ask for time to review if needed.
- Make a specific request based on research: “Based on market data for similar roles and my experience with X, I was hoping for a base salary around $Y.”
- Explain your value briefly.
- Be open to alternatives if base pay is fixed.
Handling responses
- Yes: confirm details in writing.
- Partial: consider whether other elements can improve.
- No: decide whether the offer still meets your needs.
Calculating total compensation
Compare offers by estimating annual total compensation:
- Base salary
- Expected bonus (target percentage × base)
- Annual equity value (be conservative)
- Employer retirement contributions
- Value of health benefits (compare premiums and deductibles)
An offer with a lower base but a strong retirement match and lower health insurance costs may be worth more than it first appears.
Using pay transparency ranges
Where postings include ranges, consider where you fit based on experience and skills. Ranges can be broad. If you meet all requirements and bring additional experience, asking for the upper part of the range may be reasonable.
Handling a lowball offer
If the offer is well below market, stay calm and professional: “Thank you for the offer. I’m excited about the role. Based on my research and experience, I was expecting something closer to $X. Is there flexibility?” Then listen.
Competing offers
If you have another offer, you can mention it honestly: “I have another offer at $X, but I’m more interested in this role. Is there any flexibility to close the gap?” Never invent offers.
Practise the conversation
Rehearse with a friend. Negotiation feels uncomfortable for many people, and practice makes it easier to state your request clearly.
Frequently Asked Questions
Can negotiating cost me the offer? Rescinding offers due to polite negotiation is uncommon, though possible.
Should I negotiate by email or phone? Either can work; phone allows conversation, email gives time to think.
How much should I ask for? Use market research; many candidates ask for a reasonable increase above the initial offer.
Can I negotiate if I’m early in my career? Yes, though flexibility may be smaller.
The bottom line
Research the market, ask for ranges, make a specific, well-supported request, and evaluate the whole package.