How to use a new job offer to negotiate your current salary

More than half of job seekers accept the first salary they're offered without negotiating. According to a 2025 National Bureau of Economic Research (NBER) working paper, 42% of tech job candidates countered their initial offers, and those who did saw an average compensation increase of 12.45%, or roughly $27,000 per year. For the majority who stayed silent, the cost was measurable.

Key takeaways

• Use Glassdoor Salaries to benchmark your market value before any negotiation conversation.
• Only present an external offer to your current employer if you're genuinely prepared to leave.
• Focus on your value and contributions, not the competing offer itself, when making your case.
• Negotiate total compensation, not just base salary. Signing bonuses, PTO, and remote flexibility are all on the table.
• If pay is your only reason for considering a move, a counteroffer can work. If deeper issues are driving you out, it probably won't.

How to prepare before you negotiate

Before you bring a competing offer to your manager, confirm it reflects actual market value. Use Glassdoor Salaries to see what people in similar roles earn by title, location, and experience. A strong salary negotiation starts with research, not a demand. Data tells you what the market pays. Your case has to explain why you deserve it. Build a value inventory:

• Revenue you generated or protected
• Projects you led and their outcomes
• Problems you solved that no one else could
• Skills or certifications that are hard to replace

Quantify wherever possible, and lead with contributions when you open the conversation.

When leveraging a competing offer works (and when it backfires)

Scenario A: You're genuinely ready to leave. An opportunity found you, the pay is better, and you'd take it if your employer can't match. Tell your manager you've received an offer, express that you'd prefer to stay, and give them time to respond. "If it wasn't for this new role, would you be looking to leave? If it's a job too good to pass up AND you like your current employment situation (just not the $), then tell them. This happened to my hubby when he wasn't looking. His old job called him (more $ and title), and he told his boss. They matched the deal & he stayed 10+ years." — Human Resources Specialist, Glassdoor Community Scenario B: You're bluffing. You have an offer you don't actually want and you're using it as a bargaining chip. This almost always fails. "My spouse made this move, and when they offered him more to keep him (he accepted), they started searching behind his back for a replacement, since I guess they assumed he would just leave at the next best offer. Long story short, he was left with NEITHER job." — Finance Assistant, Glassdoor Community If you want to ask for a raise without the risks of an ultimatum, build your case on merit alone. "Don't even consider it. I've seen this play out with people, and almost no one lasts a year after they accept a counteroffer to stay. Once you resign, your loyalty will forever be questioned (and you won't know it) and every unfavorable event you experience there will be magnified." — HR Manager, Glassdoor Community For more perspectives, check out the Salary Negotiations bowl in the Glassdoor Community.

Beyond base salary: What else to negotiate and when to accept a counteroffer

If your employer can't match base pay, there's often room to close the gap:

• A signing bonus or retention bonus to bridge the gap between offers
• Additional PTO or flexible scheduling
• Remote or hybrid work flexibility
• Equity or stock options, increasingly common even outside tech
• An accelerated performance review timeline, with a defined path to a raise within six months
• A professional development budget for certifications, conferences, or courses

"Depending on the strength of the job market, the potential benefits (and risks) of negotiating compensation may rise or fall." — Ricardo Perez-Truglia, professor of economics at UCLA Anderson, UCLA Anderson Review If your employer does counter, the decision depends on why you were considering leaving. A counteroffer can work when pay was genuinely your only concern and your manager responded positively. Decline if your frustrations go deeper — a toxic manager, lack of growth, or cultural problems that a raise won't fix. And don't overestimate the risk of negotiating: researchers found that managers withdraw offers after counters far less often than candidates believe (Hart, E., Bear, J. & Ren, Z., 2024, Organizational Behavior and Human Decision Processes). Want to hear how other professionals handled their salary negotiations? Join the conversation in the Glassdoor Community.

Frequently asked questions

Can you lose a job offer by negotiating salary?

It's rare. Most employers expect some negotiation, and a reasonable counter rarely results in a withdrawn offer. The exception is if you make demands that are significantly above the role's budget or deliver an ultimatum that signals inflexibility.

How much higher should you counter-offer on salary?

A counter of 10% to 20% above the initial offer is generally considered reasonable, depending on your research into the market rate for the role. Going higher requires strong justification tied to specific skills, experience, or competing offers.

Is it better to negotiate salary over email or phone?

Phone or video calls allow for real-time dialogue and tone, which can help you read the situation and adjust. Email works well for follow-ups or when you want a written record of what was discussed. Many negotiators start the conversation live and confirm details in writing afterward.

Can you negotiate salary at your current job without another offer?

Absolutely. A well-prepared case built on market data, documented contributions, and a clear ask can be just as effective as presenting a competing offer. Many managers prefer this approach because it signals commitment rather than an ultimatum.