From Offer to Acceptance: A Guide to Salary Negotiation

After weeks of interviews, you finally get the call: “We’d like to extend an offer.” It’s a moment of relief and celebration. But before you accept, there’s one final, crucial step that many tech professionals overlook: negotiation. This isn’t about being greedy or confrontational; it’s a standard business discussion to ensure your compensation reflects your skills and market value. Failing to negotiate can leave a significant amount of money on the table, a deficit that compounds over your entire career. This guide will provide a clear framework for understanding your offer, negotiating with confidence, and making the best decision for your future.

Key Principles for Success

To negotiate effectively, you need to shift your mindset from that of a candidate to that of a business partner.

Know Your Worth: The foundation of any successful negotiation is data. You aren’t just picking a number out of thin air; you are anchoring your request in objective market reality. Use resources like Levels.fyi, Glassdoor, and Payscale to research the typical compensation range for your role, level, and geographic location.

It’s a Conversation, Not a Confrontation: Approach negotiation as a collaborative discussion, not a battle. The goal is to find a mutually beneficial outcome. Maintain a positive, enthusiastic, and professional tone throughout. Remember, you are negotiating with your future colleagues.

Always Consider Total Compensation: A job offer is much more than just a base salary. The best negotiators evaluate the entire package: base, bonus, equity, and benefits. An offer with a lower base salary but significantly more equity could be far more lucrative in the long run.

The Offer Stage Playbook

Navigating the final stage is a process. Here’s how to handle it step-by-step.

Part 1: Decoding Your Offer

An offer letter can have many components. It’s essential to understand each one.

• Base Salary: This is your fixed, guaranteed income. It’s the most stable part of your compensation.
• Performance Bonus: Often expressed as a target percentage of your base salary (e.g., 15%). Clarify if this bonus is based on individual, team, or company performance, and how consistently it has paid out in the past.
• Equity (RSUs vs. Stock Options): This is your ownership stake in the company. Restricted Stock Units (RSUs) are grants of company stock that vest over time. Stock options give you the right to buy company stock at a predetermined “strike price” in the future. For public companies, RSUs are generally more straightforward and less risky.
• Sign-On Bonus: This is a one-time, lump-sum payment to incentivize you to join. It can be a great lever to pull in negotiations if the company is unable to move on base salary.
• Benefits: Don’t overlook the value of health insurance, 401(k) matching, paid time off, and professional development stipends.

Part 2: The Art of Negotiation

• Step 1: Receive the Offer with Enthusiasm. When the recruiter calls with the offer, your first response should always be positive. Thank them sincerely and express your excitement about the role and the team.
• Step 2: Ask for Time to Review. Never accept an offer on the spot. It’s standard practice to ask for time to consider. Say, “This is wonderful news, thank you so much! Would it be alright if I take a day or two to review the details with my family and get back to you?”
• Step 3: Do Your Research and Formulate Your Counter. This is where you use the data from Levels.fyi and other sources. Compare their offer to the market rate. Decide on a specific number for your counteroffer, focusing on total compensation.
• Step 4: Make the Ask (The Negotiation Call). Get on the phone with the recruiter. Reiterate your excitement, then make your request clearly and professionally.
  • Sample Script: “Thank you again for this offer. I am very excited about the opportunity to work on [Project X] with [Hiring Manager’s Name]. After reviewing the offer and comparing it with market data for a [Your Role] at this level in [City], I was expecting a total compensation package closer to the [Your Target Number] range. Considering my experience in [Key Skill], would there be any flexibility to increase the base salary or equity to better align with that?”
• Step 5: Stop Talking. After you state your request, pause and let them respond. Resist the urge to fill the silence. This puts the ball in their court.

Part 3: Evaluating Competing Offers

If you’re fortunate enough to have multiple offers, compare them holistically.

• Financials: Create a spreadsheet to compare the 4-year value of each offer. Factor in base salary, expected bonus, and the potential value of the equity based on its vesting schedule.
• Career Growth: Which company offers a clearer path to promotion, better learning opportunities, or stronger mentorship?
• Culture and Work-Life Balance: Which team did you connect with more? Does the company have a reputation for a sustainable work pace or for burnout?
• The Work Itself: Which role has you working on a more interesting tech stack or a product you genuinely believe in?

Career Advice & Pro Tips

Tip 1: Anchor High, but Reasonably. Your first counteroffer should be ambitious but not absurd. Anchoring slightly above your ideal number gives you room to negotiate down to a final number you are happy with.

Tip 2: Leverage Competing Offers (Politely). A competing offer is your strongest point of leverage. You can say, “I’ve also received a competing offer, but your company is my strong preference. The other offer has a total compensation of [X]. Is there anything you can do to help bridge that gap?” Never lie about having an offer.

Tip 3: If Base is Firm, Negotiate Elsewhere. If a company has rigid salary bands, they may not be able to increase the base salary. In that case, pivot. Ask, “I understand if the base salary is firm. Would it be possible to explore a higher sign-on bonus or an additional equity grant?”

Conclusion

Salary negotiation is one of the most valuable skills you can develop for your career. It’s a standard business practice that, when done professionally, can significantly impact your financial future. By doing your research, communicating clearly, and evaluating the entire compensation package, you can confidently advocate for your value. This final conversation isn’t just about money; it’s about starting your new role on the right foot, knowing that you’ve secured an offer that is both fair and exciting.