How to Negotiate Your Tech Salary in 2025: The ‘Enlarge the Pie’ Method
Salary negotiation can feel stressful and overwhelming.
Many people think that for every gain, the other party has to lose something.
But what if this “win-lose” mentality is a myth?
In fact, the most successful negotiators approach negotiation as a collaborative rather than adversarial process.
Break Free from the Scarcity Mindset in Negotiations
A common problem in negotiations is the scarcity mindset.
This mindset assumes there’s only so much value to go around, and you need to grab as much as possible at the expense of the other side.
But, in most cases, the two sides don’t have opposite needs.
Both sides need to focus on “enlarging the negotiation pie.”
This means finding creative ways to add value so everyone leaves with more than they expected.
It’s about moving from a win-lose approach to a win-win solution.
The Justin Kan Story: A Masterclass in Creative Negotiation
Justin Kan, the founder of Twitch, shared a story about his earlier company, Justin TV.
The company faced a $150,000 lawsuit—a huge amount they couldn’t afford at the time.
Instead of giving in, Justin tried to understand the real reason behind the lawsuit.
He found out that the plaintiff needed money to advertise their product and was using the lawsuit as leverage.
Justin offered advertising space worth $150,000 instead of cash.
Both sides agreed, and the problem was solved.
This is what Justin called "enlarging the negotiation pie" — finding creative ways to meet both parties’ needs.
Real-World Examples of “Enlarging the Negotiation Pie”
Here are three scenarios that show how you can use creativity to negotiate better outcomes:
Skill-Building Opportunities Instead of Cash
Instead of pushing for a higher salary, a software engineer asks for funding to attend leading conferences, workshops and training opportunities.
These perks not only help the employee raise their profile for future job hunts but also enhance their chance to have more impact at the company.
Equity vs. Immediate Cash Compensation
An AI researcher is offered a smaller-than-expected raise but negotiates for a larger equity stake instead.
By emphasizing their long-term commitment to the company’s success and demonstrating how their work impacts growth, they secure a more lucrative package at the end of their first year at the company.
This approach aligns the researcher’s personal financial goals with the company’s long-term interests.
Customizing Work Benefits for Work-Life Balance
A senior engineer is looking for a raise but the company won’t budge.
Instead, the engineer negotiates for a two-day in-office workweek and rest of the week remote.
These non-monetary benefits keep the company’s payroll expenses the same, yet can make a huge difference for a person’s work-life balance.
Proven Strategies to Enlarge the Negotiation Pie
How can you apply this concept in your own life or career? Here are actionable steps:
Understand Their Priorities
Take the time to learn what the other party values most.
If you’re unsure, ask.
People want to get what they need—they are very likely to tell you what their specific needs are because they hope you’ll fulfill them.
Identify What’s Valuable to You
Consider what you can offer that holds less cost or burden to you but may be highly valuable to the other side.
For example, one of my clients was moving for a job at Intuit from living 1.5 hours from the office to living nearby.
The company didn’t offer a relocation stipend but we argued for a higher salary anyways to make up for the cost of living in a more expensive area.
The justification? He wanted to be available to come into the office as often as needed, which he was happy to do.
Win-win.
Think Beyond Cash
Just like advertising worked for Justin TV, think creatively about non-monetary forms of value.
Time, connections, resources, or expertise might be part of the solution.
Build Trust Through Empathy
Show genuine care and curiosity for the other party’s position.
Collaboration flourishes when both sides feel heard and respected.
Why Enlarging the Pie Matters in Tech Negotiations
Negotiation is a crucial skill in the tech world, especially for software engineers and AI researchers in competitive markets like Silicon Valley.
Whether you’re negotiating a salary, stock options, or a research budget, the principles of enlarging can advance your career benefits.
And in industries driven by innovation, collaboration is often more valuable than competition.
By approaching negotiations with a mindset of creating value, you’re not just winning the deal—you’re building lasting professional relationships.
If you found these tips helpful, share this post with someone in your network who could use a boost in their negotiations.
Let’s help more people feel confident at the table in 2025!
Here’s to making negotiation your superpower.