A company you like has an open position you want. You had a discovery conversation with the hiring manager and you submitted your resume and cover letter. (It’s 2025, why are cover letters still a thing?! Please comment if you know.) It’s time to interview. They will tell you what they want from the new hire and you will tell them the conditions under which you’re willing to work. How can you make this negotiation productive for both you and your potential employer?
Reality Check
Let’s use the Tech Industry as an example. In terms of employment, it’s been volatile since the pandemic. Tons of people were hired in 2020, then big companies started letting tons of employees go in 2022 and those layoffs are still happening. Under these conditions, negotiating your compensation may feel intimidating. With companies regaining leverage, you need to enter the interview knowing what the state of the industry is and how that impacts the benefits you want. Here is an article that tells you how to research a company’s financial stability.
Research
Look up the market rates for similar roles in your location on PayScale, Salary.com, or Glassdoor. Define three numbers: The minimum salary you will accept, the ideal salary you’d be thrilled to get, and your walkaway number. Factor in personal costs. For example, what is your cost of living? What career growth opportunities will the employer offer? What are your work-life balance needs?
Salary
Most companies have a budget for each position, but they may not volunteer this information. It’s important to find out what they are willing to pay before you reveal any of your three numbers. When the hiring manager asks you how much money you want, try this response: “I’m open, but I’d love to understand the salary range you have in mind for this role.” This prevents you from lowballing yourself and gives you a baseline for negotiation. Once you know the range, push for the top. If they offer $90K–$110K, make a case for why you deserve $110K. Give illustrations of your experience, projects, and results. For example: for a Software Developer: “In my last role, I improved system performance by 30%, reducing downtime and saving the company an estimated $200K annually.”
Benefits
Compensation is more than a paycheck and benefits can make a huge difference in how attractive the job is. You also have to acknowledge that there will be tradeoffs. For example, if you push for a higher salary, then they may push for you to be in the office full-time. Consider negotiating for remote/hybrid work options, additional PTO, an upskilling budget, and/or equity or bonuses.
Mindset
Approach negotiation as a two-way conversation, not a battle. Filling this role is a challenge for the hiring manager. Act like the problem-solver you are by using “we” language. For example, “We want to ensure this is a strong long-term fit. Can we adjust the offer to reflect that?” By framing your requests as suggestions you signal your intent to help them achieve the result they want.
What other strategies do you use when negotiating compensation? Please share in the comments