InsightsHow to Negotiate Your Salary - A Practical Guide
6 min read· May 6, 2026

How to Negotiate Your Salary - A Practical Guide

Most people accept the first number they are offered. Here is how to negotiate effectively - whether you are starting a new job or asking for a raise.

A
Avance Private Wealth
CFP

Why Most People Do Not Negotiate - and Why That Is a Mistake

Studies consistently show that a majority of workers accept the first salary offer they receive without negotiating. The reasons vary - fear of seeming ungrateful, not knowing what to ask for, assuming the number is fixed - but the cost of not negotiating is significant. A $5,000 difference in starting salary, compounded through raises and promotions over a career, can represent hundreds of thousands of dollars in lifetime earnings. Negotiating is not aggressive. It is expected.

Employers build negotiation room into their offers. The first number is rarely the best number. Recruiters and hiring managers are not offended by a counter - they anticipate it. What actually makes a candidate look unprepared is a counter that is not grounded in market data or delivered without confidence.

Do Your Research Before Any Conversation

Effective negotiation starts with knowing your market value. Use multiple sources: Glassdoor, Levels.fyi for tech roles, LinkedIn Salary, the Bureau of Labor Statistics Occupational Outlook data, and conversations with peers in similar roles. Look for ranges specific to your geography, industry, experience level, and company size. A software engineer salary in San Francisco is not the same as the same role in Nashville.

Identify a target number and a minimum acceptable number before the conversation begins. Your target should be at the upper end of what is reasonable given your research. Your minimum is the number below which you would decline or continue looking. Having both numbers in advance prevents you from making impulsive decisions in the moment when an offer is on the table.

Never give the first number if you can avoid it. If asked for your salary expectations early in the process, it is acceptable to say you would like to learn more about the full scope of the role before discussing compensation. Once you have an offer, you are in a stronger position to negotiate.

How to Make the Counter

When you receive an offer, express genuine enthusiasm for the role before making a counter. Then state your number clearly and with a brief rationale. Something like: "I am very excited about this opportunity. Based on my research into market rates for this role and my experience in X and Y, I was expecting something closer to $Z. Is there flexibility there?" That is it. No over-explaining. No apologizing. State the number and then stop talking.

If the salary is fixed - which is common in government roles, some union positions, and certain large employers - ask about other components: signing bonus, additional vacation days, remote work flexibility, professional development budget, or an earlier performance review. Total compensation is the real number. Base salary is just one piece.

Negotiating a Raise in Your Current Role

Asking for a raise is different from negotiating a new offer. The strongest position is to make the ask at a natural review cycle, after a visible win, or when you have taken on responsibilities beyond your original scope. Document your contributions with specifics - revenue generated, costs reduced, projects delivered - before the conversation.

Come in with a specific number, not a range. Ranges signal that you will accept the low end. If your research and performance support a 12 percent increase, ask for 12 percent. Be prepared for a counter or a delay. If the answer is no, ask what it would take to get there and establish a clear timeline for revisiting the conversation. A no today does not have to be a permanent no.

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