Recruiter: What kind of number are you looking for?
Me: I'm looking for a minumum of $num. (A 25% raise from current gig)
Recruiter: We can totally do $num.
<a week or so passes while they put the offer together>
Recruiter: We're offering you $num.
Me: Could you do $num + ($num * 7%)?
Recruiter: I'll see what I can do.
<a week or so passes while he gets approval>
Recruiter: We're offering you $num + ($num * 7%).
Me: Sounds good.
Now, a professional negotiator probably wouldn't have coughed up a number first, but my gig at the time was paid fairly and I really liked the company. So I tossed out a number that was big enough to actually get me to jump ship. Was no skin off my back if they couldn't reach it. But they could. And I had a pretty good feeling from the hiring manager that they wanted me there, and that they'd advocate for me with HR, which I'm pretty sure is what happened.
Don't be afraid to say no and turn down an offer if it is too low. It will be hard to say no the first time, but as you get more experienced, it becomes easier and you put yourself in a better position.
When it comes to receiving an offer, one can go to the current employer and see if one can wrangle a counteroffer, but be aware that some employers don't like this. At least, be sure that you are an employee that the employer absolutely does not want to lose and that you would rather stay with your current company all things being equal.
Personally, I'm probably a bad negotiator. I have reached the point in my career where I don't care as much about the $ as I do about the work environment, although it has taken 4 jobs in my short 2 year career to reach that point. I essentially make certain mandates, and if the company is able to meet them, then I am happy - if not, I have my choice of companies to work at. Usually this might require say [insert current salary + $30k+] + [insert bonus for relocation/paying previous company's bonus for leaving early/pot sweetener]. Also find out whether the company pays bonuses, vacation/benefits structure, and other relevant info, although nothing beats a high raw salary since it is a hard reference point for future negotiations.
If their initial pitch goes well, and they ask about my comp requirements, I know that I'm supposed to have them make the first offer, but I will usually offer a salary and equity number. Granted, that's considered by many a negotiation mistake. So, I will say that I will not consider less than x$ and y-equity, but that it will likely take more. Depends on how the interview process goes and what I learn. But they're numbers that, if we end up there, will be better than my current situation.
So, then things go well, and they make an offer, usually at or very close to what I told them. I've always countered some bump in salary or equity from that, but a package that if they accept, I will accept.
For me personally, money is no longer the top factor, I don't particularly enjoy negotiation, and I'm usually also talking by this point with my potential new boss. So, I willingly make the process pretty streamlined at the expense of possibly squeezing out a little more. That approach is not right for everyone.
That said, I think companies fully expect some negotiation. So whatever negotiation tactic you take, as long as it's respectful, will not hurt your chances of ultimately getting the new gig. In other words, they won't withdraw an offer or anything if you negotiate.
I also always tell them I am willing to take $X (Where $X is 10K+ more than your previous salary) but that would make this a lateral move for me so I want $X+$Y (Where $Y is ANOTHER 10-20K) to take the job. At worst they say "No, but we can start you at $X with a renegotiation at 3-6 months based on your performance". Instant raise plus the promise of re-opening negotiations down the line. Also remember that no matter what they say make sure you have the schedule for when re-negotiations will take place and try to get it to less than 1yr (especially for the first re-negotiation). Ideally you would get: Initial -> 3-6mo's -> every 6mo's but you can settle for Initial -> 3-6mo's -> every year.
NEVER take a job making less or the same as your previous job, moving companies is the BEST way to get a raise. Even if you feel the need to get away from a bad company don't take less.
6 months later, I had a new job offer. On the day I was going to resign, they gave me a raise (they probably knew a about my displeasure, but not the job offer). I thanked them, showed them the offer and told them I couldn't ignore the difference in comp. Then, I asked if they could do better. So, they gave me another raise. Then, I asked them if they could do better and...
You get the point. I am good at my job and before this point in my career, got recognized in every way possible, other than financially. However, for whatever reason, the only way I could get any financial validation was to have leverage, which in this case was another job. In the case where you are negotiating a new opportunity, your leverage is whether or not you'll take the job. In my case, my leverage was another great opportunity for a lot more money.
I suspect I'm not the only one on HN that focuses on doing a great job and not on directly advancing their career. So, my advice to you is always have leverage when negotiating and don't be afraid to use it. However, there are 2 caveats. 1. You have to be willing to take the other job - your company may not be interested in retaining you. 2. Having a job offer is very different than just being disgruntled, from the company perspective. But, tread lightly, you want to come across as wanting to stay, but unable to ignore the financial or professional disparity
The first number offered by an employer (for the benefit of the grandparent commenter) is --- practically always --- their floor. They expect some fraction of candidates to make a higher ask, and they can't predict which candidates those are, so there's a safety margin built into the first offer. Any number inside that margin is, for the purposes and incentives of the hiring manager, the same as the floor, so there is no reason ever to accept it.
"We're in the ballpark" is a convenient way of saying "no" that sounds a whole lot like "yes". It comes in handy all over the place!
"I'll need a day or two two consider" allows you to take the negotiation offline. If you're more comfortable, for instance, making a counteroffer via email than on the phone, "I'll need a day" accomplishes that for you (a good hiring manager is going to get you right back on the phone when you make that email counter, though). Since every piece of job hunting advice ever written suggests that candidates ask for a day to consider, every sane hiring manager (a) expects you to ask and (b) will happily concede.
1. Negotions will be very different if you need the job rather than "just looking" - especially if they know it. Try not to let emotions get in the way, but it can be tough.
2. Never "negotiate" salary with a recruiter. They make money when you get an offer. They couldn't care less if you get what you want or if the employer will offer you want you need/want.
3. Recruiters don't give a damn about you and they aren't working "for you". You are a commission. They are no different than a realtor. They want to close the deal as quickly as possible and focus on the next commission.
If your first contact with a potential employer is through a recruiter and money comes up, it's 100% about weeding you out. They don't want to waste time with someone who is going to demand more than the employer is willing to pay.
If you don't need the job, your best bet is to talk to them about lifestyle and comfort level instead of money. Do you want to own your own home? type of community? retirement? kids to put through college? The salary required to meet those requirements will be wildly different based on where the company is located, but no matter what the employer's upper limit is you'll know going into the negotiations (later on) that your needs/wants should be met by whatever the final salary agreed upon is. Do not mention what your current situation is. That's completely irrelevant to the discussion.
If you do need the job, and really don't have time to sit around and wait for the best offer possible to come your way, then just tell the recruiter that you'd rather wait until after you've had a chance to go through some of the interview process before talking about money. If they press the issue, suggest that they tell you what the position pays (usually it's a range) and that you'd like to continue forward with the interview. During the downtime, do your due-diligence on the location, cost of living, etc.
Once you're done with the recruiter and through the interview sufficiently enough to start talking real money, it's important (imo) to not worry about trying to squeeze out every dime possible. You should be going into the interview with a number in mind that allows you - and your family - to be comfortable and happy. However, ...
1. Good companies usually have salary ranges fixed based on "level" or some other factors (senior people make X while newbies make Y). Companies that do this have no problem telling you what that salary range is, because they aren't trying to weezle anyone. You should be able to ask them what those ranges are. You should be able to get a sense of what you could be making in the future (but don't count on it!).
2. Remember that benefits can greatly compensate for salary! If the potential employer has a great health package, covers 90%+ of your health care premiums, matches 401K, offers 5+ week vacation, etc. Those things (to you) may be worth far more than an extra $5,000 / year. Remember to give them an opportunity to sell those to you. On the flip-side, if those benefits aren't there, bring those up as part of your negotiation asking for more.
3. This is my own experience, but don't ever take less salary because the company offers great bonuses. It's much better to make $10K more per year than it is to possibly get a $15K bonus at the end of the year. You can invest salary, bonuses aren't guaranteed, bonuses can be taxed differently based on how they are paid out, etc.
HTH