Salary Negotiation: What Happens on the Other Side of the Offer

For most of my career I sat on the company side of offer conversations: building salary ranges with hiring managers, preparing offers and talking them through with candidates. The same pattern repeated every year. Candidates who asked calmly, with a reason, usually got something. Candidates who didn’t ask got exactly what was offered — and some of them found out later that a colleague hired at the same time had asked.

Here is how an offer is put together, and how to negotiate it without putting it at risk.

How the company’s number is built

Almost every role sits in a salary band: a minimum, a midpoint and a maximum for that level. The hiring manager has a budget inside that band, and HR checks one more thing before anyone sees an offer: what people already doing similar work in the company earn. That check is called internal equity, and it limits how far a company can go even when it wants you.

The first offer usually lands below the top of what’s approved. That isn’t a trick. Recruiters expect many candidates to negotiate, and they keep some room for it. What they can’t easily do is go above the band — that needs extra approvals and often a change of level.

So the real question isn’t “will they pay more?” It’s “where in the band am I, and what would justify moving up?”

When to name a number

The salary question usually comes early, in the first call with a recruiter. It’s not a trap: the recruiter needs to know the role is realistic for you before spending everyone’s time.

Start by checking whether the range is already public. In Canada, British Columbia and Ontario now require pay ranges in most public job postings, and in the US so do a growing number of states, including California, Colorado, Illinois, New York and Washington. If the posting has no range, ask: “What’s the budgeted range for this role?” Most recruiters will tell you.

When you answer, give a range based on research, and make the bottom of it a number you’d accept: “Based on the scope and the market, I’m looking at 135 to 150 thousand base. Is that in line with your range?” Then stop talking.

Avoid leading with your current salary. It anchors the conversation on your past rather than the job, and in many US states employers aren’t allowed to ask about your pay history.

If you’d like to practice this answer out loud, it’s one of the questions we rehearse in interview coaching — most people find it harder to say than to plan.

What you can actually negotiate

Base salary is only one line of the offer. When base is close to the top of the band, the other lines often have more room.

How to respond to an offer

When the offer comes, don’t accept or negotiate on the spot. Thank them, say you’re excited about the role, and ask for the full offer in writing. It’s normal to ask for a day or two to review it.

Then come back once, with everything you want to discuss in the same conversation. Asking for one thing, getting it, and then asking for another damages trust quickly.

A counter that works has three parts: enthusiasm, a specific number and a reason. For example: “I’m very excited about this role and I’d like to make it work. Given the scope of the team and what I’m seeing for similar roles in Toronto, I was expecting a base of 145. Is there flexibility to get closer to that?”

Notice what’s missing: threats, ultimatums and a long list of personal expenses. The reason should be about the job and the market, not about your rent.

Mistakes that cost candidates money

• Negotiating before there’s an offer. Until the company has decided it wants you, you have nothing to negotiate with.
• Inventing a competing offer. Recruiters talk to many candidates and notice when a story doesn’t hold together. If you do have another offer, you can mention it — honestly and without pressure.
• Looking only at base salary. A lower base with a larger bonus, better benefits or equity can be worth more. Compare the total package.
• Accepting and then renegotiating. Once you’ve said yes, the conversation is over. Ask everything before you accept.

If you’re moving up or across

An offer is also the moment when career advancement is easiest to capture. When you change companies, you negotiate from your market value rather than your current salary, which is why an external move often brings a bigger jump than an internal promotion.

For director, VP and executive offers, more is on the table: equity and how it vests, a signing bonus to replace what you’re leaving behind, severance terms and your title and reporting line. At that level, have an employment lawyer review the agreement before you sign. More on how these roles are filled in our guide to the executive job search.