Why Most People Don't Negotiate (and Why You Should)
Studies consistently show that only about 37% of workers always negotiate their salary, according to a 2023 Glassdoor survey. The rest either accept the first offer or feel too uncomfortable to push back.
This is extraordinarily expensive. Starting salary is the base that all future raises, bonuses, and retirement contributions build on. If you accept $75,000 when you could have negotiated $82,000, and you receive average 3% annual raises, that $7,000 gap costs you over $50,000 in the first five years alone -- and the gap only widens over time.
Negotiating isn't rude, greedy, or risky. It's expected. Hiring managers build negotiation room into their initial offers because they know candidates will counter. When you don't negotiate, you're not being polite -- you're leaving their budgeted money on the table.
Step 1: Research Your Market Rate
You can't negotiate effectively if you don't know what the role is worth. "I want more money" is not a negotiation strategy. "The market rate for this role in this city with my experience level is $X, and here's why" is.
Where to Get Salary Data
Use at least three sources to triangulate your range:
| Source | What It's Good For | Limitations |
|---|---|---|
| Glassdoor | Role-specific salary reports by company | Self-reported, can be outdated |
| Levels.fyi | Tech compensation (base + equity + bonus) | Skewed toward large tech companies |
| Bureau of Labor Statistics (BLS) | Broad industry data, reliable methodology | Less granular, slower to update |
| Payscale | Detailed by experience, location, skills | Requires sharing your own data |
| LinkedIn Salary Insights | Network-based salary data | Requires premium for full access |
| Blind (Teamblind) | Anonymous, verified compensation posts | Tech-focused, culture can be toxic |
When researching, filter by:
- Job title (Senior vs. mid-level matters)
- Location (or remote-adjusted rates)
- Company size (startups vs. enterprise pay differently)
- Industry (a software engineer at a bank vs. a startup vs. a FAANG company can have a 2x salary difference)
Define Your Numbers
Before any negotiation, know three numbers:
- Your target: The number you'd be genuinely happy with. This should be above the market median if your qualifications are strong.
- Your minimum: The lowest number you'd accept. Below this, you walk away.
- Your anchor: The first number you'll say out loud. This should be above your target by 10-15%, because negotiation naturally moves downward.
Example for a Senior Product Manager in Austin, TX:
Market research range: $140,000 - $175,000
Your qualifications: 8 years experience, MBA, shipped 3 major products
Your numbers:
Anchor (what you ask for): $172,000
Target (what you'd accept): $160,000
Minimum (walk-away point): $148,000
Step 2: Time It Right
Timing in salary negotiation is everything. Bring up money too early and you lose leverage. Wait for the right moment and you negotiate from a position of strength.
The Golden Rule: Wait for the Written Offer
Do not discuss specific salary numbers until you have a formal offer. Before that point, the company is still evaluating whether they want you. Once they've extended an offer, the dynamic flips -- now they've invested time and resources in choosing you, and they don't want to start over.
Deflecting Early Salary Questions
Recruiters often ask for salary expectations in the first call. This puts you at a disadvantage because you're negotiating against yourself before you know the full scope of the role. Deflect politely:
"I'd prefer to learn more about the role and responsibilities before discussing compensation. I'm confident we can find a number that works for both of us once we've determined there's a mutual fit."
If they push harder:
"Based on my research, roles like this in our market range from $140K to $175K. I'd want to understand the full compensation package -- benefits, equity, bonus -- before landing on a specific number."
Notice: you gave a range, not a single number, and the range is based on market data, not your current salary.
Never Reveal Your Current Salary
In many states, it's now illegal for employers to ask. But even where it's legal, your current salary is irrelevant to what the new role should pay. If pressed, redirect: "I'd rather focus on the value I'd bring to this role and what the market supports."
Step 3: Make Your Counter
You've received a written offer. Here's how to respond.
Don't Accept Immediately
Even if the number is good. Thank them, express enthusiasm, and ask for time to review: "Thank you so much -- I'm really excited about this offer. I'd like to take a couple of days to review the full package. When do you need a decision by?"
This is standard and expected. No reasonable employer rescinds an offer because you asked for 48 hours to think it over.
The Counter Email
When you're ready to negotiate, a written counter often works better than a phone call because it gives the hiring manager something concrete to take to their leadership for approval.
Subject: Re: Offer Letter - Senior Product Manager
Hi Rachel,
Thank you again for the offer -- I'm genuinely excited about joining the team and contributing to the platform migration project we discussed.
After reviewing the offer and researching market compensation for this role, I'd like to propose a base salary of $168,000. This reflects the market rate for senior PMs with my level of experience in this region, and I believe it's consistent with the scope and impact of the role as we discussed it.
I'm very much looking forward to working together and am confident we can find a number that works for both sides.
Best, Alex
Key elements: gratitude, enthusiasm, a specific number (not a range), brief justification, and a collaborative tone. No ultimatums, no lengthy arguments, no apologies for asking.
Why a Specific Number, Not a Range
If you say "I'm looking for $155K to $170K," the company hears "$155K." Your bottom number becomes the starting point for their counter. A specific number ($168K) gives you more control over where the negotiation lands.
Step 4: Negotiate Beyond Base Salary
If the company can't move on base salary (this happens, especially in large organizations with rigid pay bands), there's a lot of other value on the table:
| What to Negotiate | Why It Matters |
|---|---|
| Signing bonus | One-time cost is easier for companies to approve than ongoing salary |
| Equity / stock options | Can be worth more than salary over time |
| Annual bonus target | Ask for a higher percentage or guaranteed first-year bonus |
| Remote work flexibility | Saves commute time and money |
| Extra PTO / vacation | Even 5 extra days per year is significant |
| Professional development budget | Conferences, courses, certifications |
| Title | A better title costs the company nothing and helps your future career |
| Start date | Negotiate a later start for a break between jobs |
| Relocation assistance | If applicable, this can be worth $10K-$30K |
A common winning strategy: "I understand the base salary is firm at $155K. Would it be possible to bridge the gap with a $10K signing bonus and an additional week of PTO?"
This gives the hiring manager a face-saving way to increase the total package without exceeding their salary band.
Step 5: Handle Objections
Hiring managers will push back. That's part of the process. Here are the most common objections and how to respond:
"This is the most we can offer for this level." "I appreciate the transparency. Could we revisit the compensation at my six-month review with clear performance benchmarks? I'm confident in the value I'll deliver, and I'd love for the compensation to reflect that as I prove myself."
"We need to maintain internal equity." "I understand and respect that. Are there other parts of the package -- signing bonus, equity, or professional development budget -- where there's more flexibility?"
"Your experience doesn't quite match a senior-level salary." "I understand that concern. My experience with [specific relevant accomplishment] directly addresses the core challenge in this role. I'd be happy to discuss a performance-based review at six months to adjust compensation once I've demonstrated that impact."
"The offer is non-negotiable." This is rare but it happens. If you've done your research and the offer is fair, accept it gracefully. If it's below your minimum, thank them and walk away. Don't bluff about walking away unless you're prepared to follow through.
What Never to Do
- Don't threaten or give ultimatums. "Pay me $X or I walk" kills the relationship before it starts.
- Don't negotiate via text message. Email or phone only.
- Don't lie about competing offers. If it comes out (and it often does), you'll be known as dishonest.
- Don't make it emotional. "I need this much because my rent is expensive" is not a negotiation argument. Stick to market data and your qualifications.
- Don't negotiate just to negotiate. If the offer is genuinely fair and meets your target, accepting it graciously is perfectly fine. Not every negotiation needs to be a battle.
The Long Game
Salary negotiation isn't just about this one offer. It's about resetting your earning trajectory. Every raise, bonus, and 401(k) match you receive for the rest of your career at this company will be calculated from the base you negotiate today.
A 15-minute conversation that increases your starting salary by $8,000 could be worth over $100,000 in lifetime earnings when you factor in compounding raises, percentage-based bonuses, and retirement contributions. Minute for minute, it's the most valuable conversation you'll have in your career.
Sources
- Harvard Business Review: 15 Rules for Negotiating a Job Offer -- Comprehensive framework for salary negotiation from Harvard, including research on anchoring effects, timing, and how to handle counteroffers
- Bureau of Labor Statistics: Occupational Employment and Wage Statistics -- The most comprehensive government data source for salary benchmarks across occupations, industries, and geographic regions
- Glassdoor: Salary Negotiation Guide -- Data-driven negotiation strategies with insights from Glassdoor's salary database, including statistics on how often employers expect candidates to negotiate
Your salary negotiation starts with a strong application. Superpower Resume helps you build a resume that positions you as a top candidate -- because the better your application, the stronger your negotiating position when the offer comes.
