Negotiating your job offer isn’t just about your salary. Yes, the salary is, right after your title, the most important component of your package…
…But negotiation is not limited to salary alone. It is, fundamentally, about securing a comprehensive package that aligns with your career and life goals.
It’s about getting what you deserve as well as want.
It’s about making sure that you feel and know that the trade between you and your employer is fair, even a little better than fair – so that you can commit to creating massive value for your employer and build a stellar career filled with countless accomplishments.
From stock options to remote work perks, corner offices to training allowances, four day work-weeks to quarterly bonuses; every element of your compensation package can and should be negotiated.
This guide will walk you through the process, addressing common challenges associated with the benefits you can ask for beyond salary.
Table of Contents
- Why Negotiation Matters
- Key Negotiable Benefits Beyond Salary
- How to Prepare for Negotiation
- Proven Strategies for Negotiating Stock Options
- Securing Flexible Work Arrangements
- Tactics for Increasing Signing Bonuses and Perks
- Extra Time Off & Vacation
- Negotiating Additional Medical Benefits
- Avoiding Common Mistakes
- Post-Negotiation: Getting Everything in Writing
1. Why Negotiation Matters
Most professionals undervalue their bargaining power. According to research, only 44% of workers negotiate, despite clear evidence that employers expect workers to negotiate and prepare their budget accordingly.
Moreover, the earlier you negotiate a better salary in your career, the more it can compound over time…
Since most employers will ask you what you’re currently making before extending an offer, and since most professionals don’t know how to tactfully avoid answering salary questions that don’t serve them – without learning how to negotiate, you remain forever at the mercy of your last employer.
Of course, in some situations it’s not possible to get more than what’s “allocated” for a particular budget. Despite the fact that the allocated budget is an arbitrary decision which can be modified when there’s sufficient pressure, most professionals do not have the required level of power to execute such a move.
That’s where the perks in this document comes in handy!
In many situations, it is wiser to pivot and ask for additional benefits rather than asking for a higher salary. (Of course, as we teach our students; you should make at least one counter offer asking for a higher salary before pivoting to other benefits – see what you can get first!)
2. Key Negotiable Benefits Beyond Salary
Companies, generally speaking, have more flexibility with non-salary components of your compensation package. Here’s what you should focus on:
- Stock Options and Equity: Especially for startups and tech companies this is a valuable ask. Many companies often include equity grants that can significantly impact your wealth – especially if the company grows fast. Always clarify vesting schedules, dilution risks, and how equity aligns with your long-term goals before accepting the offer. (Note: this seems to be the fastest path to early retirement in our circles…)
- Remote Work and Flexible Schedules: The value of remote work goes beyond convenience, saving thousands annually in commuting costs, not to mention the absolute control over your work environment and when you work. (Be sure to read our article on building high-value careers with remote work for more details on the importance of remote work.)
- Signing Bonuses: Often left out of initial offers, signing bonuses can be a powerful possibility. Even when they don’t offer you a signing bonus at first, it’s worth asking for. Especially if you can find evidence that the firm has offered signing bonuses to other employees, you can use that as a point of leverage (i.e. You’re clearly capable of paying signing bonuses, and you said you really want me to join… Well, then you can pay me a signing bonus too.)
- Professional Development Budgets: Companies may pay for certifications, training, or conferences if you ask. Some companies will even let you complete a postgraduate degree on their dime. (Of course, this can come with other hooks attached, such as a requisite years of service per year of tuition paid – read the fine print.)
- Relocation Assistance: For roles requiring relocation, many companies offer assistance in covering moving expenses, temporary housing, and travel costs. Be sure to discuss the specifics, as this can save you thousands and reduce the stress of transitioning to a new city.
- Enhanced Healthcare Benefits: Healthcare is a major expense, and companies often have flexibility in what they offer. You can negotiate for premium health insurance plans with lower deductibles, vision and dental coverage, or even contributions to Health Savings Accounts (HSAs).
- Additional Vacation or Paid Time Off: Some companies are open to offering more paid time off (PTO), sabbatical options, or even unlimited vacation policies – especially if this is presented as a productivity-enhancing perk. If you are not satisfied with salary, and the employer has acknowledged that the salary is low for you but the “best they can do”, getting additional time off can make the offer more balanced. (Note: we’ve even seen cases where, to make up for the deficit in salary, individuals offer to work only 4 days out of the typical 5 day work week.)
(Pro Tip: When negotiating, always frame your requests as mutually beneficial. For example, more vacation could enhance your productivity and commitment, while remote work could reduce costs for the company. Lead with the value you bring to them in your counters and how you formulate your sentences. See Launch Your Career for the full list of formulas.)
3. How to Prepare for Negotiation
Preparation is the key to successful negotiation. Here’s how to do it:
- Understand Market Data: Use tools like PayScale, Levels. Fyi, and Glassdoor to benchmark your role and industry. BE BRUTALLY HONEST AND UNBIASSED in this research. Everyone, especially highly talented professionals, feel underpaid. Others, delude themselves and act like they are getting paid well, when instead, they are barely getting scraps. Forget your feelings… Look at the facts!
- List Priorities: Identify what matters most to you – salary, flexibility, or equity.
- Get Competing Offers: Multiple offers give you leverage. You can reference them, with or without disclosing specific numbers, depending on how the negotiations go.
- Get Your Scripts Ready: Negotiations are completely deterministic, when you know what you’re doing. The fastest way to get the best outcome is to build your scripts for your counters and asks using our negotiation formulas, which are built using cognitive biases and market data.
- Anticipate Pushback: Prepare counterarguments for common objections. (Again scripts.) Expect two rounds of back-and-forth for every ask.
4. Proven Strategies for Negotiating Stock Options
Stock options can be complex, but they often hold the most potential upside.
- Understand Vesting Schedules: The most common vesting schedule is four years with a one-year cliff, meaning you earn nothing until after your first year. If you’re confident in the company’s growth, push for earlier vesting (e.g., quarterly or monthly after the first year) or a higher initial grant. Alternatively, if you’re planning to stay long-term, you might negotiate for a larger overall package in exchange for a longer vesting period (e.g., 5-6 years).
- Request Refresh Grants: Stock grants lose value over time due to dilution and vesting completion. Negotiate for regular “refresh” grants to maintain your equity stake. For example, you could request a commitment for annual reviews of your equity package, and sell it as “aligning your growing contributions to the company with your equity”.
- Factor Valuation and Liquidity: You MUST evaluate whether the company’s stock is likely to grow and when you’ll be able to sell it. Ask critical questions about the company’s current valuation, projected growth, and liquidity events (e.g., IPO, acquisition). A high valuation might indicate limited upside, while a low valuation with growth potential could offer significant gains. Remember: Getting 1000 units of TSLA (Tesla) valued at $1 would have been considerably more valuable than getting 1000 units of AMZN (Amazon) at $226 per share. (The latter would be worth $226,000 the day this article was written, whereas the former would be $368,780)
Example Negotiation Script: Initial Ask for Stock Options
Scenario: You’re in the offer stage with a company that hasn’t yet detailed the equity component of your package.
You:
“Thank you for the offer. I’m excited about the opportunity and the chance to contribute to [Company Name]’s success. Before finalizing, I’d like to discuss equity. Given the growth potential of the company and the value we’ve agreed I can bring to the team, I was expecting stock options to be part of the offer.”
Pause and listen. If equity is already included, move to clarifying details. If not, continue with this:
“Equity is an important factor in aligning my long-term goals with the company’s success. Would it be possible to add stock options to the package, and could we explore the specifics of the grant?”
If they agree to discuss, pivot to clarifying key details:
“Thank you. To ensure we’re aligned, could you share the vesting schedule, the total grant size, and any plans for refresh grants?”
(For a more in-depth guide on structuring these discussions and maximizing your negotiation outcomes, see Launch Your Career.)
5. Securing Flexible Work Arrangements
Ever since the pandemic, remote work and flexible schedules are becoming considerably more negotiable. While we’ve been teaching our students how to structure these agreements well before the pandemic, the fundamentals haven’t changed much. It has, however, gotten easier.
Meaning: If you are not getting remote work and flexible work agreements, you are doing it wrong.
Of course, the trick is – like with all things employment negotiation – spinning your benefit in terms of value to your employer…
- Highlight Productivity Benefits: Frame remote work as beneficial to your output, citing studies that support flexibility and efficiency gains.
- Suggest Trial Periods: If a company is hesitant, propose a 3 to 6 month trial period for working remotely or on a flexible schedule.
- Create Leverage First: Sometimes it’s beneficial to take the offer without the flexible work agreement, and then once the company becomes dependent on you, pivoting to a flexible schedule or a few days from home. The success of this technique depends on your ability to become indispensable to an employer – you should analyze the material dependency you can generate before taking this route.
Example Negotiation Script: Initial Ask for Flexible Work Arrangements
Scenario: You’re in the offer stage, and flexible work hasn’t been explicitly mentioned in the terms.
You:
“I’m thrilled about this opportunity and eager to join [Company Name]. Before we finalize, I’d like to discuss work arrangements. I’ve found that remote work significantly enhances my productivity and allows me to deliver better results. Can we structure a remote or hybrid arrangement?”
Pause and listen. If they seem hesitant, provide supporting points:
“I’ve seen that remote work leads to higher efficiency and job satisfaction, which benefits both of us. In fact, I’ve read studies showing remote work can increase productivity by as much as 13% while reducing absenteeism and improving work quality.”
If they remain hesitant, propose a trial period:
“I completely understand that trust in these arrangements is built over time. How about we start with a 3 to 6 month trial period for a remote or hybrid setup?”
For situations where you may need to delay the ask:
“I understand this is a new arrangement for some teams. I’m happy to start in the office and revisit this conversation later.” (Hint: If they don’t immediately object and state something along the lines of “no way, never”, you’ve accomplished planting the seed.)
(For more in-depth guidance on structuring and negotiating work, see out Launch Your Career.)
6. Tactics for Increasing Signing Bonuses and Perks
Many companies that offer signing bonuses make this explicit in the job description. Sometimes, however, the signing bonus is possible but not mentioned. This section is for those cases…
- Anchor High: Ask for 20-30% more than your desired bonus to allow room for compromise.
- Bundle Requests: Present your bonus ask along with other benefits to make concessions easier. (You’re giving them token asks for them to reject, so when they give you only the bonus, it feels like it’s a win.)
- Explain Financial Need: Cite specific reasons, such as relocation costs, to justify your request. (This technique is risky and depends on the ideological assessment of the person you’re negotiating with. While its considerably more complicated than this next statement – and you should see our full notes on personalities in Launch Your Career – those on the political left seem to acquiesce to need based asks more than those on the political right.)
Example Negotiation Script: Initial Ask for a Signing Bonus
Scenario: You’ve received an offer without a signing bonus or one smaller than you’d hoped for.
You:
“Thank you for the offer. I’m excited about the role and joining [Company Name]. Before we finalize, I’d like to discuss the possibility of a signing bonus in the package.”
Anchor High:
“Based on the demands of transitioning into this role, including relocation and setup costs, I’d like to propose a signing bonus of [insert an amount 20-30% higher than your actual target]. This would help make sure there’s a smooth transition and allow me to focus entirely on hitting the ground running.”
Bundle Requests:
“I understand there are budget considerations, so I’d also like to explore other benefits like [name two lower-priority items, such as professional development budgets or relocation assistance]. Of course, I’m flexible on the specifics and would prioritize the signing bonus.”
Explain Financial Need (use with caution):
“I’m facing significant upfront costs, including [specific examples like relocation, temporary housing, or other relevant expenses]. A signing bonus would alleviate this burden and allow me to dedicate my full attention to my role from day one.”
(It’s absolutely worth going over the personalities sections on Launch Your Career.)
7. Extra Time Off & Vacation
Additional vacation or paid time off (PTO) can significantly enhance your work-life balance and overall job satisfaction.
Remember: Employers have more flexibility with vacation policies than they initially disclose, and it’s usually easier for hiring managers and recruiters to dispense than stock options or signing bonuses – fiscally speaking.
That being said, the corporate world HATES, in fact ABSOLUTELY LOATHES time off, especially in America. Some companies have policies that flat out reject the possibility of extra time off, and make sure that from the CEO to the lowest of the low interns get the same policy.
Given this tough situation, here’s how to approach it:
Key Points to Consider
- Know the Policy: Understand the company’s standard vacation and PTO policies before negotiating. Some organizations already offer generous plans or even unlimited PTO. Others hate time off.
- Spin Your Needs: Frame your request in a way that benefits the company, such as improved productivity and mental well-being.
- Ask for Non-Standard Solutions: Propose unpaid leave options, the ability to carry over unused vacation, or sabbatical plans.
- Tie It to Your Value: If you’re delivering exceptional results, justify your request by emphasizing how your performance warrants additional flexibility. They aren’t hiring a “rando”, they are hiring a professional.
Example Negotiation Script: Asking for Extra PTO
Scenario: You’ve received an offer with the standard PTO policy, but you’re aiming for more vacation days.
You:
“Thank you for the offer. I’m very excited about the opportunity and eager to bring my skills to [Company Name]. Before we finalize, I’d like to discuss vacation.”
Frame the Ask Positively:
“I understand the policy allows for [standard PTO amount]. For me to maintain peak productivity and bring my best to the team, I’ve found that having [your desired PTO amount] works well. Would it be possible to adjust my PTO allowance to reflect this?”
(For more strategies and scripts, see Launch Your Career.)
8. Negotiating Additional Medical Benefits
Medical benefits are a significant component of total compensation. They can also have a lasting impact on your financial security and well-being.
While companies often present standard benefits packages, many are capable of making adjustments if you make a compelling case. (Hint: different ranks of the hierarchy may already be getting different medical benefits, meaning: If you’re a lowly Manager or Director, they may already have something better to offer you, negotiated with their insurance provider that they set up for the CEO.)
Key Points to Consider
- Assess the Offer: Review the provided healthcare coverage, including premiums, deductibles, and out-of-pocket maximums.
- Explore Coverage Upgrades: Ask about enhanced medical, dental, or vision plans; lower-cost options; or contributions to Health Savings Accounts (HSAs).
- Consider Family Needs: If you have dependents, negotiate for broader family coverage or wellness programs.
- Ask About Ancillary Benefits: Some companies offer perks like mental health resources, fertility treatments, or gym memberships.
Example Negotiation Script: Asking for Additional Medical Benefits
Scenario: You’ve received an offer with a basic healthcare package that doesn’t fully meet your needs.
You:
“Thank you for sharing the benefits details along with the offer. I’m excited about the opportunity and impressed by many aspects of the package. Before finalizing, I’d like to discuss the healthcare.”
Frame the Ask Clearly:
“The current plan is a great, but I noticed it doesn’t include [specific benefit, such as lower deductibles, expanded dental coverage, etc.]. To better support my needs, would it be possible to adjust the plan or provide an allowance for additional coverage options?”
Highlight the Value to the Employer:
“Enhanced medical benefits would allow me to focus entirely on my role, without worrying about coverage gaps or unexpected costs. It’s important for long-term productivity and commitment.”
Propose Alternatives:
“If adjustments to the standard plan aren’t possible, I’d be happy to explore options like a contribution to an HSA or access to additional wellness programs.”
(For more details, visit Launch Your Career.)
9. Avoiding Common Mistakes
The mistakes for negotiation at large are the same for these non-salary offers. A couple of brief notes:
- Mistake #1: Accepting the First Offer: The first offer is rarely the best. Always counter.
- Mistake #2: Getting Emotional: We are professionals here. You must communicate like a cold calculating machine; be implacable and untouched by their reactions.
- Mistake #3: Neglecting Research: Arriving unprepared makes you vulnerable to low offers.
- Mistake #4: Selfish Presentation: Don’t kid yourself, everything you’re asking for is for your own self-interest and benefit. You HAVE TO be selfish, at heart. But that doesn’t mean you present selfish. You must present like a good little drone who is looking out for the best interest of the company, and what you’re asking for is necessary to do your job well, with any benefits you derive being accidental. (Yes, this IS insane and disingenuous! But it’s also the zeitgeist of the corporate world… Play with these rules or get out. Just don’t get played by those rules. And never try to be “authentic” or “common sense”. That’s the path to poverty.)
10. Post-Negotiation: Getting Everything in Writing
Final note… Once you’ve negotiated your package, ask for a formal offer letter that includes all agreed-upon terms.
Verbal agreements are not always binding and may lead to misunderstandings. They also usually end up with you holding the short end of the stick.
Conclusion
Negotiation is an art and a science.
It’s also a way of life.
You are negotiating with your employer every day. You just don’t realize it…
That being said, when you get a job or get a performance review, this negotiation becomes explicit. And it pays – literally – to do it right.
By preparing thoroughly, focusing on total compensation, and employing tactics built using cognitive biases and psychological needs, we’ve found extraordinary success in our circles.
We genuinely hope the same will happen for you.
Don’t be afraid to ask for more. You deserve it!