Why base salary isn't the whole picture
Most candidates negotiate on base salary while ignoring variables that can swing $10,000–25,000 in either direction: 401k match, health insurance value, and commute costs all affect what you actually keep.
Components of total compensation
- Base salary: the offer letter number — everything else derives from it
- 401k match: a 4% match on $100k salary = $4,000/year in free money — often missed when comparing offers
- Health insurance: employer-sponsored coverage can be worth $8,000–20,000/year vs. buying individually
- Commute cost: an extra 30 min each way and $200/month = $2,400/year after-tax cost, equivalent to $3,200+ pre-tax
- Equity: RSUs/options that vest over 2–4 years; model conservatively at 50% of stated value for private companies
How to negotiate effectively
- Know your floor (minimum total comp to take the role) before the call
- Make a specific ask with a brief rationale — "based on market data for this role I was expecting $X" beats vague asks
- If base is firm, negotiate signing bonus, equity, PTO, or a 6-month review instead of annual
- Never accept on the spot — "Can I have until Friday to review?" is always appropriate
- Competing offers are the strongest leverage — use them directly if you have them
Total comp = Base + 401k match + Health value − Commute costs
Minimum salary = Current comp − Match value − Health value + Commute
Frequently Asked Questions
Is it always appropriate to negotiate?
Yes for professional roles — employers almost universally expect it and the initial offer is rarely the best they can do. The risk of politely asking is near zero. The only exceptions are highly structured systems (some government roles, union positions) where bands are genuinely fixed.
How do I find market rate data?
Use multiple sources: Glassdoor, Levels.fyi (for tech), LinkedIn Salary, BLS Occupational Outlook, and conversations with peers. Bias toward recent data — compensation moves fast in some markets, and data over 2 years old is often stale.
What if they say the offer is non-negotiable?
Ask about other components: signing bonus, stock grant, extra vacation, remote flexibility, or earlier review cycle. Something is almost always movable. If truly nothing is, you now have clear information for your decision.
Should I disclose my current salary?
Many jurisdictions prohibit requiring salary history. Even where permitted, anchor to market rate ('I'm targeting $X based on market data') rather than your current salary — especially if you're underpaid.