--- name: Salary Negotiation Prep description: Research market rates, build negotiation strategy, and create counter-offer scripts --- # Salary Negotiation Prep ## When to Use This Skill Use this skill when the user wants to: - Negotiate a job offer or salary - Research market rates for their role - Create a counter-offer strategy - Understand total compensation packages - Mentions: "salary negotiation", "negotiate offer", "counter offer", "compensation", "how much should I ask for" ## Core Capabilities - Research and validate market compensation - Build negotiation strategy and scripts - Calculate total compensation (not just base salary) - Prepare counter-offer responses - Identify negotiation leverage points - Navigate difficult salary conversations ## The Negotiation Mindset **Key Principles:** 1. Negotiation is expected - companies budget for it 2. 84% of employers expect candidates to negotiate 3. Not negotiating leaves $500K-$1M on the table over a career 4. The goal is win-win, not adversarial **What You're Really Negotiating:** - Base salary - Signing bonus - Annual bonus/commission - Equity (stock options, RSUs) - Benefits (401k match, insurance) - Perks (vacation, remote work, professional development) - Start date - Title ## Research Phase ### Step 1: Determine Market Rate **Sources to Check:** - Levels.fyi (best for tech) - Glassdoor (general, take with grain of salt) - LinkedIn Salary - Blind (anonymous reports) - PayScale - Salary.com - H1B salary data (publicly available) **Build a Range:** ``` Low (25th percentile): $XXX,XXX Target (50th percentile): $XXX,XXX High (75th percentile): $XXX,XXX Stretch (90th percentile): $XXX,XXX ``` ### Step 2: Know Your Value **Factors That Increase Your Worth:** - Years of relevant experience - Specialized/rare skills - Track record of results - In-demand certifications - Current competing offers - Referral from employee - Market demand in your field **Factors That May Limit:** - Entry level or career change - Less experience than ideal candidate - Gaps in required skills - Location arbitrage (lower cost of living) ### Step 3: Calculate Total Compensation **Total Comp = Base + Bonus + Equity + Benefits** ``` EXAMPLE: Base Salary: $150,000 Target Bonus (15%): $22,500 RSU Grant (4-year): $200,000 ($50,000/year) 401k Match (4%): $6,000 Benefits Value: ~$15,000 Total Annual Comp: $243,500 ``` **Common Equity Terms:** - **RSUs:** Restricted Stock Units (real shares, taxed when vesting) - **Options:** Right to buy at strike price (value = current price - strike price) - **Vesting:** Typically 4-year with 1-year cliff - **Refresh grants:** Annual additional equity grants ## Negotiation Strategy ### When to Negotiate **Best Time:** After you have a written offer, before you sign **Timeline:** 1. Receive verbal offer → Express enthusiasm, ask for written offer 2. Receive written offer → Thank them, ask for time to review 3. Research and prepare → 24-48 hours 4. Counter with ask → Email or call 5. Discussion/back and forth → May take several rounds 6. Final agreement → Get in writing ### The Counter-Offer Framework **Structure:** 1. Express enthusiasm 2. Reinforce your value 3. Make specific ask 4. Provide justification 5. Open discussion ### Counter-Offer Email Template ``` Subject: [Your Name] - Offer Discussion Hi [Recruiter/Hiring Manager], Thank you so much for the offer to join [Company] as [Title]. I'm very excited about the opportunity to [specific thing about the role]. After speaking with the team and learning more about [something specific], I'm confident this is the right fit. I've had time to review the offer details and wanted to discuss the compensation. Based on my research of the market and my [X years of experience / specific valuable skill / competing offer], I was hoping we could discuss a base salary of $[Your Ask] rather than $[Their Offer]. [Optional: Add specific justification - e.g., "I've seen similar roles at [comparable companies] in this range" or "Given the scope of the role and my track record of [specific achievement], I believe this reflects my value."] I'm flexible and open to discussing other elements of the package as well. Would you have time for a quick call to discuss? Thank you again for this opportunity. I'm looking forward to finding a package that works for both of us. Best, [Your Name] ``` ### Counter-Offer Call Script ``` "Hi [Name], thanks for making time. I'm really excited about this opportunity - [genuine specific reason]. I've reviewed the offer and want to discuss compensation. Based on my market research and [X years experience / key accomplishment / competing offer], I was hoping for a base salary closer to $[Amount]. Is there flexibility there?" [LISTEN - Let them respond] [If they push back:] "I understand there are constraints. I'm flexible - could we look at other elements like signing bonus, equity, or [other element] to bridge the gap?" [If they say they'll need to check:] "That's totally fair. When would be a good time to reconnect?" ``` ## Common Negotiation Scenarios ### Scenario 1: First Offer Is Low **Approach:** - Don't accept immediately - Express enthusiasm for role - Counter with research-backed number - Be prepared to justify **Script:** ``` "I'm thrilled about the opportunity. The base salary is lower than I expected based on my research. For this role and market, I was expecting something in the $X-$Y range. Is there room to move closer to $X?" ``` ### Scenario 2: They Ask Your Salary Expectations First **Deflection Strategy:** ``` "I'm flexible and focused on finding the right fit. What's the range you've budgeted for this role?" ``` **If Pressed:** ``` "Based on my research for this role and market, I'm looking at $X-$Y, but I'm open to discussing the full compensation picture." ``` ### Scenario 3: They Won't Budge on Base **Alternatives to Negotiate:** - Signing bonus (one-time, easier to approve) - Additional equity - Earlier performance review (sooner raise) - More vacation days - Remote work flexibility - Professional development budget - Title upgrade - Relocation assistance - Start date **Script:** ``` "I understand the base salary is firm. Could we discuss a signing bonus to help bridge the gap? Something in the range of $X would make this work." ``` ### Scenario 4: You Have Competing Offers **Use Carefully:** - Only mention if true - Don't make it a threat - Frame as problem-solving **Script:** ``` "I want to be transparent - I'm also in discussions with [another company/a few other companies]. They're offering $X. [Your Company] is my first choice because [genuine reason], but I want to make sure the compensation is competitive." ``` ### Scenario 5: They Ask About Current Salary **In Many States, This Question Is Illegal** **If Asked (and legal):** ``` "I'd prefer to focus on the value I'd bring to this role and what the market rate is. What's the range you've budgeted?" ``` **Or Redirect:** ``` "My current compensation isn't really comparable since [different location/role/structure]. Based on my research for this role, I'm targeting $X-$Y." ``` ## Negotiation Tactics ### Do's: - ✅ Always negotiate (respectfully) - ✅ Get the offer in writing before negotiating - ✅ Research thoroughly - ✅ Be specific with numbers - ✅ Express genuine enthusiasm - ✅ Give them a way to say yes - ✅ Consider total compensation - ✅ Be patient - process takes time - ✅ Get final agreement in writing ### Don'ts: - ❌ Accept on the spot - ❌ Give a salary history (if not required by law) - ❌ Make ultimatums - ❌ Lie about competing offers - ❌ Be rude or aggressive - ❌ Negotiate just for the sake of it - ❌ Accept verbal promises without writing - ❌ Burn bridges if it doesn't work out ## Total Compensation Comparison ### Side-by-Side Analysis ```markdown ## OFFER COMPARISON | Component | Company A | Company B | Notes | |-----------|-----------|-----------|-------| | Base Salary | $150,000 | $140,000 | A wins | | Target Bonus | 15% ($22,500) | 20% ($28,000) | B wins | | Signing Bonus | $20,000 | $10,000 | A wins | | Equity (annual) | $50,000 | $75,000 | B wins | | 401k Match | 4% ($6,000) | 6% ($8,400) | B wins | | Benefits | Standard | Premium | B wins | | WFH | Hybrid (3 days) | Full remote | B wins | | Vacation | 3 weeks | Unlimited | Depends | **Year 1 Total Comp:** Company A: $248,500 Company B: $261,400 **Analysis:** Company B is higher total comp, but Company A has higher base which affects future raises and mortgage qualification. ``` ## Negotiation Timeline Template ``` Day 1: Receive offer - Thank them, express enthusiasm - Ask for offer in writing - Ask deadline for response Day 1-3: Research - Verify market rate - Calculate total comp - Identify priorities - Prepare counter-offer Day 3-5: Counter - Send counter-offer email or schedule call - Be specific about ask Day 5-10: Discussion - May require several rounds - Be patient but responsive - Stay professional and positive Day 10+: Resolution - Agree on terms - Get everything in writing - Sign and celebrate! ``` ## Output Format When preparing salary negotiation: ```markdown # SALARY NEGOTIATION STRATEGY ## Market Research Summary **Role:** [Title] **Location:** [City/Remote] **Experience Level:** [Years] **Market Range:** - 25th percentile: $XXX,XXX - 50th percentile: $XXX,XXX (target) - 75th percentile: $XXX,XXX - 90th percentile: $XXX,XXX (stretch) **Sources:** [List sources used] ## Their Offer | Component | Amount | |-----------|--------| | Base | $XXX,XXX | | Bonus | X% | | Equity | $XXX,XXX | | Signing | $XXX | | Total Year 1 | $XXX,XXX | ## Your Counter | Component | Ask | Justification | |-----------|-----|---------------| | Base | $XXX,XXX | [Why] | | Signing | $XXX | [Why] | | [Other] | | | ## Counter-Offer Script [Email template or call script customized for this situation] ## If They Push Back **Plan B:** [Alternative elements to negotiate] **Walk-away Point:** [Your minimum] ## Key Talking Points 1. [Your experience/value point] 2. [Market data point] 3. [Specific achievement] ## Questions to Clarify - [Equity vesting schedule?] - [Bonus guaranteed?] - [Review cycle timeline?] ``` ## Implementation Checklist 1. ✅ Research market rate from 3+ sources 2. ✅ Calculate total compensation (not just base) 3. ✅ Identify your priorities 4. ✅ Determine walk-away point 5. ✅ Prepare counter-offer with justification 6. ✅ Write or practice negotiation script 7. ✅ Plan for pushback scenarios 8. ✅ Get agreement in writing 9. ✅ Review final offer letter carefully 10. ✅ Sign and celebrate!