How To Negotiate Salary: Tips for Employees and Employers

When new hires receive a job offer, they may feel hesitant to negotiate for a higher salary. The process can feel awkward and intimidating, leading many not even to try. In fact, 55% of workers do not negotiate their salary. 

Employers actually expect employees to negotiate salary and take that into account when making the initial offer. The good news is that Fidelity research shows that “85% of Americans who countered on salary, other compensation or benefits, or both, received at least some of what they requested.” 

How Much To Request

The amount of your counteroffer depends on several factors, including the quality of the offer, location, level, experience, and salary range provided by the employer. Start by reviewing the salary ranges for comparable positions in job listings and on Glassdoor. Keep in mind that pay transparency laws vary by state, and geographic location affects salary variations. You can use a cost-of-living calculator to compare two cities. 

The University of Colorado Boulder states, “If the salary offered is within the low range for similar positions, consider an initial counteroffer 10-20% higher, and if the salary offered is within the average range, consider a counteroffer 5-7% higher.” When switching jobs, pay increases typically range from 5-15%, but some industries have higher rates. For example, executives could receive a 30% salary bump, and cybersecurity experts could receive 20-30%. Fast food and retail jobs average a smaller bump of around 3-7%. When switching jobs, new hires can ask for a 10-20% increase.

When To Negotiate

Employees want to secure the best job offer with the highest salary. Employers value top talent. Finding and securing the best talent requires considerable time and expense. Once an offer is made, employers are motivated to do what is necessary to secure their top choice.

While employers will not ask employees to negotiate, 90% of employers are open to negotiating. Salary negotiation is an expected part of the hiring process. However, it may not be possible for positions that follow a set pay scale, such as government and teaching jobs, unless you can be placed at a higher level on the pay scale. Even if an employer mentions salary early in the interview process, never negotiate until after an offer is made. 

Salary Negotiation Tips for Employees

How you handle salary negotiations matters. According to the 2025 Salary Negotiation and Expectations Report, “57% of American workers expressed regret about how they handled their negotiation.” Employees can learn how to advocate for themselves and show their value. 

Harvard Law School shared three winning strategies for salary negotiations from negotiation experts: 

• Get Out of Your Own Way: Examine your vulnerabilities, weaknesses, and internal dialogues that may sabotage the process before you even begin. 

• Consider the Context: Research the pay categories for someone with your education and experience. Consider how they apply to this specific company, based on industry and company size. 

• Adapt Your Style for Maximum Success: Improve your individual negotiation style. Five negotiation strategies are collaborating, competing, accommodating, compromising, and avoiding. 

By adopting a positive approach and using effective salary negotiation techniques, employees will earn more respect from employers and better position themselves financially for a long future with the company.

Be Timely

Employees should respond immediately to a job offer to express thanks, show excitement, and request time to review it. Provide a brief timeframe for when you will follow up, such as the next day. Then, when you are ready to follow up, email the person who made the job offer and let them know that you would like to discuss and negotiate the offer. Find out whether it is best to proceed by phone call, scheduled meeting, or email. 

Research and Plan

Prepare to make your case. While you are job hunting, research what your role typically pays. There are many sources for finding salary data, including salary reports, job listings, Indeed, Glassdoor, Payscale, Salary.com, and the Bureau of Labor Statistics Occupational Outlook Handbook. Ensure you rely on the most recent data, and save your evidence in a way that is easy to share, such as screenshots and links. You can also gather additional insights from networking and discussions with peers. 

Use the salary data to establish your personal range. Determine the minimum salary you will accept and your target salary. Allow room to negotiate by asking for a range that is 5–15% above your target. Most experts recommend asking for a range rather than a specific number. 

Do Not Share Your Salary History

Many states and localities have passed laws banning employers from asking about your salary history. Even if your location does not have a salary history ban, you are not required to disclose it if asked. Sharing your current or past pay puts you at a disadvantage and could result in a lower offer. 

The purpose of salary history bans is to reduce pay inequity and prevent discrimination. Instead, employers should set pay based on current market value, skills, and experience. Employers are permitted to ask about your salary expectations. If an employer asks during the interview process about your salary expectations, it is best to reply with a general statement. For example, “I am seeking competitive pay that reflects my value, skills, and experience.” Never negotiate salary until you have received an offer. 

Show Your Worth

If you were offered a salary at the bottom of the range, explain why you deserve more and show your worth. Highlight your accomplishments with measurable results, experience, and skills. If you have received other job offers, ask the employer if the offers can be matched. This is where it is helpful to reference the external salary data you compiled earlier. 

Identify What Else To Negotiate 

Ask the employer to share the details and value of the total compensation package, which includes benefits and perks. In addition to salary, many items in a job offer can be negotiated. You may be able to request changes to the following items: job title, benefits, amount of paid time off, start date, your schedule, remote work options, signing bonuses, stock options, professional development, raise timeline, and relocation expenses. Decide which items are most important to you and try to negotiate them. 

Negotiate With Confidence and Politeness

Ensure that all your communications during the salary negotiation process show your confidence, clarity, and politeness. Clearly ask for what you want and provide supporting evidence. Employees may find it helpful to refer to email examples for salary negotiation. Throughout the process, remain calm, be positive, listen carefully, show understanding, demonstrate flexibility, and be respectful. A successful negotiation requires that both parties be willing to compromise. 

With 57% of American workers regretting the approach they used in negotiations and wishing they negotiated more, it is essential to interact in a way that leaves you feeling proud, not regretful. While negotiating, do not become emotional or bring up your personal financial situation. Instead, focus on showing the value that you will bring to the organization and share salary data. You will not show your value or gain anything by mentioning the fact that you have loans to pay off, are saving to buy a home, or have unexpected expenses.   

Negotiating Raises

Most techniques for negotiating a raise with your current manager are similar to those you would use when you initially receive a job offer. Employees can ask for a salary increase after a positive performance review, if they have recently taken on greater responsibilities, after recent accomplishments, when switching roles, or to match a job offer from another company. 

Timing matters significantly. Consider how long it has been since your last raise and how the company is currently performing. Is your company thriving or declining? If the company is declining, then it is not a good time to ask for a raise. When discussing raises, focus on showing the value that you bring to the team, and always keep the conversation positive. Do not discuss your personal financial difficulties or make any threats about quitting. 

How much should you anticipate for an annual raise without a promotion? Employees expect an average raise of 9%. However, employers budget 3-5% for a raise. A 2025 Mercer survey found that “employers plan to hold base salary increases for merit at 3.2%, and total increases at 3.5%.” The Ravio 2026 Compensation Trends report revealed that “the average salary increase received at promotion in 2025 is 22.3%.”

After the Negotiation

When a successful salary negotiation is over, get the offer in writing. If you were unable to obtain a higher salary, focus on the other items you may still be able to negotiate. If your request for a raise is denied, ask your boss which metrics you need to meet to be considered for future raises. Regardless of the outcome, maintain a positive and professional demeanor.

Salary Negotiation Tips for Employers

How hiring managers determine pay and handle salary negotiations significantly impacts the outcome. Human resources professionals must skillfully balance offering a fair salary with their budget constraints. They need to offer a competitive salary to attract top talent while also allowing for some wiggle room in negotiations. 

Carefully Determine Employee Pay

By creating a compensation philosophy, carefully following steps to determine employee pay, and using salary tools, employers can set a fair and competitive pay ranges that align with industry standards and comply with laws. There are many factors to consider when determining base salary, including laws, market rates, geographical differences, inflation, cost of living, and employment classification. 

Ask for Salary Expectations, Not History

Most states now have laws prohibiting employers from asking about salary history. While employers may feel it would be helpful to know this information, salary history bans are designed to protect employees, encourage equitable practices, reduce wage gaps, and prevent pay discrimination. 

However, employers are permitted to ask about salary expectations. Many states also have pay transparency laws that require employers to provide pay ranges in job listings. You can share your pay range and ask candidates if that falls within the range they are seeking. 

Expect Employees To Make a Counteroffer

When formulating your offer, expect that many employees will make a counteroffer. Make your offer competitive while leaving room for negotiation. In addition to negotiating salary, expect negotiations in additional areas, such as signing bonuses, benefits, perks, job titles, flexible work options, start dates, commuter expenses, paid time off, and relocation expenses.

Explain the Value of Your Total Compensation Package 

Many employees are unaware of the full value of a total compensation package. In addition to salary, total compensation includes the financial value of all benefits, perks, paid time off, overtime pay, bonuses, incentives, and commissions. Essentially, it is a calculation of everything that the employee will receive in exchange for working for you. 

If employers know how to calculate total compensation, they will be better equipped to explain it to candidates, which can help offset a salary that falls short of expectations. When a potential new hire has competing offers with similar salaries, the value of perks and benefits can be the deciding factor. However, if an employer fails to explain the total compensation package, then the candidate will not have the necessary information to make an informed decision. As a result, the employer risks losing top talent due to a simple oversight.

Be Transparent About Your Process 

Let employees know when you have reached the maximum salary that you can offer. Explain the constraints at your company and the market research you used to determine compensation. Remind employees of the unique value of your company and other enticing elements in your offer. This is a good time to highlight your company culture, employee wellness programs, employee perks, your performance management system, rewards, and your commitment to learning and development. 

Offer a Signing Bonus

Signing bonuses entice employees. If you are unable to offer the desired salary, a one-time signing bonus may be a satisfactory alternative. It is more cost-effective than committing to the long-term costs of a higher salary. The amount of signing bonuses can also be negotiated. 

Ensure Employees Feel Heard

Use polite, respectful language that shows you are listening to employees, understand their request, and are considering it. Even when you are unable to give new hires what they want, they will remember how you communicate about it. Your words and actions could be the difference between the candidate walking away or accepting the position. These initial interactions during the hiring process will set the tone for a positive or negative employee experience throughout the employee life cycle.