Master negotiation strategy vocabulary: BATNA, counter-offer language, competing offers, total compensation discussion, and anchoring.
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What does BATNA stand for, and why is it important in salary negotiations?
BATNA (Best Alternative to a Negotiated Agreement) is your fallback option if negotiations fail. A strong BATNA (a competing offer, a current role you're happy in) gives you genuine leverage — you're negotiating from strength, not desperation.
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A candidate says: 'I'd like to counter at $145,000.' What is a counter-offer?
A counter-offer is a response that proposes different terms — typically a higher salary, more equity, or other benefits. It keeps the negotiation open and signals the candidate wants to reach an agreement, just at better terms.
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A candidate says: 'I have a competing offer.' How does this affect a negotiation?
A competing offer is the most powerful negotiation lever — it's not just a claim about market value, it's proof. Employers know the candidate will leave if they don't respond, and it shifts the negotiation from abstract to concrete.
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What does 'let's discuss the total compensation package' signal in a negotiation?
Shifting to total compensation broadens the negotiation: if base salary is at the cap, there may be room to increase equity, sign-on bonus, PTO, or other benefits. It's a signal to look at the full picture rather than a single number.
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What is 'anchoring' in a salary negotiation?
Anchoring is the cognitive bias that the first number stated becomes the reference point for all subsequent negotiation. Stating a specific high number first (e.g. '$155,000 base') tends to shift the final outcome higher than if you wait for the employer to anchor first.