Salary and Compensation Negotiation

The $15,000 Conversation

Maria received a job offer at $85,000. She was thrilled—it was more than her current salary. She almost accepted immediately. But she paused, spent thirty minutes preparing with AI, and asked for $100,000 with a justification based on market data. They settled at $97,000. That thirty minutes of preparation earned her $12,000 per year—compounding over her entire career.

By the end of this lesson, you’ll have the exact strategies and scripts for salary negotiations, whether you’re evaluating a new offer or asking for a raise.

🔄 Quick Recall: In the previous lesson, we learned three value-creation strategies. Remember logrolling? Salary negotiation is the perfect application—there are many variables beyond base pay that you can trade. Today we apply all our negotiation frameworks to the conversation that directly determines your income.

Negotiating a New Job Offer

Timing Is Everything

Never discuss salary numbers until you have a written offer. Before the offer, deflect salary questions:

Recruiter: “What are your salary expectations?” You: “I’d like to learn more about the role first. I’m confident we can find a number that works for both of us once we’ve determined there’s a mutual fit.”

After the offer, you have maximum leverage. They’ve chosen you. Reopening their search would cost them weeks and thousands of dollars in recruitment costs.

The Response Framework

When you receive an offer, never accept or reject immediately. Use this framework:

Step 1: Express enthusiasm (without accepting). “Thank you so much—I’m really excited about this role and the team.”

Step 2: Ask for time. “I’d like to review the full package carefully. Can I get back to you in 48 hours?”

Step 3: Prepare your counteroffer.

I received a job offer with these terms:
- Base salary: [amount]
- Bonus: [amount/structure]
- Equity/RSUs: [if applicable]
- Benefits: [what's included]
- Start date: [date]
- Other: [remote, title, etc.]

Market data for this role:
[paste research on salary ranges]

My BATNA: [other offers, current job, etc.]

Help me:
1. Evaluate this offer against market data
2. Identify which elements to negotiate
3. Draft a counter-proposal with justification
4. Prepare for their likely pushback

✅ Quick Check: Why should you never accept a job offer on the spot, even if it exceeds your expectations?

The Counteroffer Script

Here’s a template that works across industries:

“I’m very excited about joining [Company]. After reviewing the offer carefully and researching market rates for this role, I’d like to discuss the compensation. Based on [specific data point], the market range for someone with my experience in [city] is [range]. Given my [specific value you bring], I was hoping we could look at a base of [your anchor]. I’m also interested in discussing [signing bonus / equity / remote work / other variable].”

Key elements:

• Lead with enthusiasm (they need to know you want the job)
• Reference objective data (not “I need” or “I deserve”)
• Present a specific number (your researched anchor)
• Open additional variables (this creates room for logrolling)

What’s Negotiable in a Job Offer

✅ Quick Check: Of the variables listed above, which two would you prioritize if the employer can’t move on base salary? Why?

Asking for a Raise

Raise negotiations follow a different pattern because you’re dealing with an existing relationship and organizational constraints.

The Preparation

Before the conversation, build your case:

I want to ask for a raise. Here's my situation:
- Current role: [title]
- Current salary: [amount]
- Time in role: [duration]
- Key accomplishments: [list 3-5 with measurable impact]
- Market data: [comparable salary range]
- My manager's priorities: [what they care about]

Help me:
1. Build a business case (focus on value delivered, not
   personal need)
2. Choose the right timing (when in the budget cycle,
   after a win)
3. Draft my opening statement
4. Anticipate objections with responses
5. Identify my BATNA (what I'll do if they say no)

The Raise Conversation Script

Opening: “I’d like to discuss my compensation. Over the past [period], I’ve [top 2-3 accomplishments with metrics]. Based on my research of market rates and the value I’ve contributed, I’d like to discuss adjusting my salary to [target].”

If they say “budgets are tight”: “I understand budget constraints. Could we agree on a specific review date with clear criteria? I’d also like to explore other forms of recognition—a title adjustment, professional development budget, or additional flexibility.”

If they say “you’re already at the top of the band”: “I appreciate that. What would it take to move to the next level? Can we create a development plan with a promotion timeline?”

Never say: “I need more money because my expenses went up.” Personal need isn’t a business justification.

Practice With AI

The most valuable use of AI in salary negotiation is simulation:

Simulate a salary negotiation. You're the hiring
manager for [Company]. You've offered me $85,000
for a [role] position.

Your hidden constraints:
- Your budget goes up to $100,000 but you'd prefer
  to stay under $95,000
- You can offer up to $10,000 signing bonus
- Remote work 2 days/week is possible
- You really want to fill this role quickly

Negotiate with me realistically. After 8 exchanges,
evaluate my performance and suggest improvements.

Run this three times. Each practice round makes the real conversation easier.

Try It Yourself

Whether you have a negotiation coming up or not, prepare your salary data right now:

1. Research your market value using AI: “What’s the salary range for [your title] with [X years] experience in [your city]?”
2. List your top 5 accomplishments with measurable impact
3. Identify your BATNA (even if it’s just “stay in current role”)
4. Set your three numbers: anchor, target, reservation price

Having this prepared means you’re ready whenever the opportunity arises.

Key Takeaways

• Negotiate salary after the offer, not before—that’s when you have maximum leverage
• Never accept an offer on the spot; always ask for 48 hours to review and prepare
• Negotiate total compensation, not just base salary—many variables are more flexible than base pay
• Use objective market data as justification, never personal financial need
• For raises, build a business case around measurable value delivered
• AI simulation is the most effective salary negotiation practice available

Up Next

In Lesson 7: Difficult Conversations and Conflict Resolution, we’ll tackle the negotiations that aren’t about money—resolving conflicts, managing disagreements, and navigating emotionally charged situations.