Negotiation Tactics
Why Negotiation Matters
Not negotiating a job offer can cost you $500,000+ over a career.
The math: A $5,000 difference at age 25, compounded at 3% annual raises over 40 years = $500,000+ in lost lifetime earnings. Plus lost 401(k) matches, bonuses calculated as percentage of salary, and Social Security benefits.
Most people don’t negotiate. Those who do typically get 5-20% more. The only cost is a slightly uncomfortable conversation.
The Core Principles
- Never accept immediately — Always ask for time to consider
- Get the offer in writing — Before negotiating
- Negotiate after they want you — Leverage is highest post-offer
- Be collaborative, not adversarial — “Help me say yes” framing
- Have alternatives — Real or perceived BATNA (Best Alternative)
Salary Negotiation: New Job
Phase 1: Deflect Early Questions
When asked about salary expectations early in the process:
Script: Deflecting Salary Questions
Recruiter: “What are your salary expectations?”
You: “I’m flexible on compensation and more focused on finding the right fit. I’d love to learn more about the role first—what’s the budgeted range for this position?”
If pressed: “I’m sure we can find something that works for both of us once we determine I’m the right fit. What range are you working with?”
Why: Whoever names a number first often loses. Let them anchor.
Phase 2: Receive the Offer
- Express enthusiasm — “Thank you, I’m excited about this opportunity”
- Don’t react to numbers — Neutral acknowledgment only
- Ask for time — “I’d like to review the full package. Can I have until [2-3 days]?”
- Get it in writing — “Could you send the offer details in an email?”
Phase 3: The Counter
Script: Countering an Offer
Setup: You received $95,000. Market rate is $100-110,000. You want $105,000.
You: “Thank you for the offer—I’m genuinely excited about joining the team. I’ve done some research, and based on my experience with [specific skill/achievement] and current market rates for this role, I was hoping we could discuss the base salary. Is there flexibility to move closer to $108,000?”
Key elements:
- Gratitude (not entitlement)
- Justification (market data, specific skills)
- Specific number (not a range)
- Question format (collaborative)
- Ask for more than you need (leaves room)
Phase 4: Handle Responses
If They Say Yes
Great! Get the revised offer in writing before accepting. Then accept promptly and professionally.
If They Meet Halfway
Decide if it’s acceptable. If close, you can try: “If you can get to $X, I can sign today.” Creates urgency.
If They Say No
“I understand. Is there flexibility in other areas—signing bonus, equity, vacation time, or start date?”
Non-salary items are often easier to negotiate.
If They Rescind
Extremely rare. If it happens, you dodged a bullet—that’s not an employer you want.
Raise Negotiation: Current Job
Negotiating a raise is different—you have a relationship to maintain.
Preparation (Weeks Before)
- Document wins — Specific achievements with numbers
- Research market — What are others paid for this role?
- Know the cycle — When are raises typically decided?
- Read the room — Company doing well? Budget season?
The Conversation
Script: Asking for a Raise
You: “I wanted to discuss my compensation. Over the past year, I’ve [specific achievement 1] which resulted in [metric], and [specific achievement 2]. I’ve also taken on [additional responsibility]. Based on my contributions and market rates for this role, I’d like to discuss adjusting my salary to $X. What are your thoughts?”
Key elements:
- Direct but not demanding
- Evidence-based (not “I need money”)
- Specific ask (not “more money”)
- Open to discussion
If They Say “Not Now”
- Ask what would need to happen for a raise
- Get specific criteria and timeline in writing
- Follow up at the agreed time
- If they keep deferring, update your resume
What to Negotiate Beyond Salary
| Item | Notes |
|---|---|
| Signing bonus | One-time, often easier to approve |
| Equity/RSUs | Can be significant at tech companies |
| Vacation time | Extra week = 2% raise equivalent |
| Remote flexibility | Saves commute time and money |
| Start date | Take time between jobs |
| Title | Affects future earning potential |
| Professional development | Conference budget, training |
| Relocation | If applicable, negotiate amount |
Common Mistakes
Accepting Too Fast
Never accept on the spot. Even if the offer is great, take time. It’s expected.
Being Apologetic
“I hate to ask, but…” undermines your position. You’re not asking for a favor—you’re establishing fair value.
Negotiating via Email Only
Email is fine for receiving offers, but negotiate via phone/video. Tone matters, and real-time conversation is more effective.
Lying About Offers
Fabricating competing offers is risky. They might call your bluff or rescind. Use real market data instead.
The Power of Walking Away
The best negotiating position is genuine willingness to walk away.
This comes from:
- Emergency fund — You’re not desperate for the paycheck
- In-demand skills — Other options exist
- Current employment — You’re not unemployed
- Clear minimum — You know your floor
If you can’t walk away, you can’t negotiate effectively. Build the position first.
Practice Makes Better
Negotiation is a skill. Practice it:
- Low-stakes practice — Negotiate at flea markets, with service providers
- Role play — Practice scripts with friends
- Debrief — After each negotiation, what worked?
The discomfort decreases with experience. The returns compound.
The Bottom Line
Negotiation is:
- Expected — Employers budget for it
- Low-risk — Offers are rarely rescinded
- High-return — Minutes of discomfort = years of higher pay
- A skill — Improves with practice
The worst they can say is no. The cost of not asking is guaranteed.
See also
- Career Decisions — Evaluating the full offer
- Income Streams — Your salary is just one stream
- Emergency Fund — The foundation for negotiating power
- Tax-Advantaged Accounts — Benefits to negotiate too