Product Designer Salary Negotiation: How to Negotiate a Product Designer Job Offer
Whether you’re designing physical goods, software, or even a new app, working in product designer careers can be incredibly exciting and rewarding. If you’ve recently received a job offer in product design, congratulations! However, before you go ahead and sign that dotted line there’s still one thing you need to do: negotiate your product designer salary.
As a product designer, you know how to create solutions that both meet user needs and fulfill business goals. Fortunately, all successful negotiations rely on these same problem-solving and collaborative skills.
So even if you’ve never negotiated a job offer before, you already have the skills necessary to do so—you just need to know how to leverage them. In this article, we are going to share with you a step-by-step negotiation process that has helped designers all over the world increase their total career earnings by improving their compensation. Our strategies and key insights will help prepare you for your product designer salary negotiation with confidence and success.
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Understanding the Compensation Components of a Product Designer Salary
Any successful negotiation will start with a detailed understanding of your total compensation package. A product designer salary package will include multiple different components that each need to be investigated closely.
Even if your offer seems great, it will be impossible to evaluate how competitive it really is without unpacking all of its different elements. In addition to a base salary, many product designer offers will also include an annual performance bonus, initial equity package, sign-on bonus, and other benefits like remote work flexibility.
While it might be tempting to only focus on the base salary of your offer, this would be a huge mistake. An effective negotiation depends on an accurate understanding of the total compensation package at hand.
For example, here is what the total compensation for a Meta product designer salary may look like:
Meta Product Designer Salary
In the following section, we will go over some of the most common product designer salary components in more detail.
PRODUCT DESIGNER SALARY
The very first component of your job offer is probably the one you’ve spent the most time thinking about: your product designer base salary.
A base salary is the fixed guaranteed pay that you receive in exchange for the work you do, so it won’t change based on your performance or any other external factors.
To negotiate for a higher base salary, you first need to know how your base salary is determined. In most cases, the company you work for will have different levels of design roles that each have different base pay ranges associated with them.
For example, the pay range for an entry level product designer salary would be different from the range for a senior product designer salary at the same company—and the same goes for roles across different companies (i.e., a Microsoft product designer salary range will differ from a Facebook product designer salary range).
So why does knowing these pay ranges matter for your negotiation? Since initial offers rarely come in at the top of their pay bands, if you know what the pay range for your specific role type is, you can try to negotiate to the top end of that range.
PRODUCT DESIGNER PERFORMANCE BONUS
It’s possible that your product designer compensation package will also include an annual performance bonus.
A product designer performance bonus is typically a percentage of your base salary. That specific percentage is almost always dependent on both your personal performance and the performance of the company you work for. So unlike a base salary which is fixed, your product designer bonus could go up or down depending on the targets you or your company hit.
While it’s possible that you or your company could outperform your goals and exceed the target percentage of your annual performance bonus, it’s not very likely. Instead, it’s best to assume the average bonus payout when evaluating and negotiating this component of your compensation package.
Unfortunately, these bonuses are typically non-negotiable. However, that doesn’t mean that they can’t make a huge difference in your total yearly compensation. And don’t forget—since your product designer performance bonus is usually a percentage of your base salary, the higher you negotiate your salary, the higher your bonus could be.
PRODUCT DESIGNER EQUITY PACKAGES
The next part of your product designer offer package to look into is your equity package. Product designer equity is a highly sought-after compensation component in these types of roles.
If you receive equity in your initial offer, it could be offered as either RSUs (restricted stock units or restricted stock awards) or stock options. This grant will include a bundle of shares or options that vest over a defined timeframe (i.e., four years), called a vesting schedule.
The good news is that product designer equity packages can make a huge difference in your total compensation. The potentially bad news is that the value of this equity can change based on the market value of the company you work for.
For example, say you secure an Apple product designer salary—you’ll benefit if IBM’s share value goes up, but you’ll take a loss if IBM’s share value goes down. So when evaluating this aspect of your compensation package, make sure to keep these fluctuations in mind and remember that if you leave the company before the equity vests, you risk forgoing it all together.
On the bright side, we’ve found that equity is usually negotiable for product designers which is why we encourage you to almost always push for more equity in your negotiation.
PRODUCT DESIGNER SIGN-ON BONUS
In most cases, you should receive a sign-on bonus in your job offer—it just might take some negotiating first. A product designer sign-on bonus is a one-time bonus that works as an incentive to join the company. A sign-on bonus can also cover any lost bonuses or unvested equity at your current job.
Since not all companies might offer a product designer signing bonus initially, it’s critical that you learn how to negotiate for one so that you can maximize your compensation.
Over the years, we’ve had countless successes securing large product designer signing bonuses—even when the job seeker wasn’t walking away from money at their current company. So don’t be afraid to negotiate for a bonus even if one wasn’t extended to you initially.
Most product designer sign-on bonuses are paid in one lump sum within the first 30 days of employment. However, take note that you’ll typically need to pay the bonus back if you leave the company within your first year (or other designated timeframe).
Other companies might approach sign-on bonuses differently. For example, the Amazon product designer salary package includes sign-on bonuses in year one and year two—which can be paid out monthly instead of in one lump sum payment.
PRODUCT DESIGNER EQUITY REFRESHER
Another element of your job offer to evaluate is your product designer equity refresher.
While it’s possible to receive an equity refresher (more stock) in an initial offer for a product designer role, in most cases the recruiters will instead intentionally withhold the stock refresher details. This practice is common for Google product designer salary offers and other industries that offer this annual equity perk.
During your negotiation, you should ask the hiring team to share more about the amount and timeline of the stock refresher. However, be prepared for them to withhold sharing any specific details. Because hiring teams often refuse to share these details, we don’t include this component in our total compensation calculation.
BENEFITS AND PERKS FOR PRODUCT DESIGNERS
Like any job, the benefits and perks for product designers will look very different depending on the specific company. Some of the most common benefits extended in these types of roles are things like health insurance, unlimited vacation, or even fitness memberships.
Another top perk of many product designer roles is the ability to work remotely, which we recommend bringing up during the interview process. Unfortunately, most other benefits are usually non-negotiable. However, it is possible in some cases to get changes approved via an under-the-table agreement with your future hiring manager (i.e., your manager will be more flexible with parental leave).
Five Key Steps to Negotiate a Product Designer Job Offer
So now that you have a thorough understanding of the most common compensation components of a product designer salary, it’s time to learn how to negotiate for an improved job offer.
Before we explain the steps for a successful negotiation, it’s important to clarify that you should only follow these strategies once you have an official offer in hand. Negotiating before you have received an offer can actually work against you since you won’t have any leverage.
So once you have been officially extended an offer, you can follow the steps listed below that have helped hundreds of career professionals negotiate successfully. And if you’re looking for help negotiating your product designer salary, you can also reach out to our team.
1) UNDERSTAND THE COMPONENTS OF YOUR PRODUCT DESIGNER SALARY
This first step in the negotiation process should be an easy one since we’ve already completed it. As a brief reminder, make sure to review your product designer compensation package for a base salary, performance bonus, initial equity grant, sign-on bonus, and any benefits and perks. Understanding the different elements that make up your total compensation is key to any successful negotiation.
You can use our Total Compensation Calculator to calculate your compensation components in this step if needed.
2) COMPLETE DUE DILIGENCE ON YOUR PRODUCT DESIGNER JOB OFFER BY ASKING QUESTIONS
Once you have carefully evaluated all of the different elements of your offer, the next step is to start asking strategic questions. Asking the right questions can help you establish an effective product designer salary counter, and it communicates to the recruiting team that you are taking the offer seriously.
So what sort of things should you ask? Start by asking for clarity on any items that the recruiter may have been vague about (i.e., What is the expected equity refresher each year for this role?). The answers you collect will include important data points you can use in your counteroffer.
We suggest starting this phase of the negotiation right after you receive the job offer. And if you’re struggling with coming up with questions to ask, you can use our list of Strategic Questions to Build Negotiation Leverage.
3) RESEARCH TO IDENTIFY WHAT PRODUCT DESIGNER SALARY SHOULD LOOK LIKE
Like we mentioned earlier in the article, the salary ranges for product designers will vary by company and level, meaning you’ll have to do some research to understand the strength of your current offer and how much you should counter for. It’s critical that your research is specific to your exact role type (i.e., is it a senior product designer salary or director product design salary) and where it’s located (i.e., is it a product designer salary NYC or product designer salary San Francisco), whether that be in-person, hybrid, or remote.
There are many online resources you can use in your research, such as PayScale or Built In. However, keep in mind that ranges on these types of sites are publicly reported by current or past employees, meaning the pay they indicate could be different from what is now offered to new employees. Comparing pay data findings across multiple different sites can help you pull together the most accurate information. You can use our Total Compensation Research Comparison Tool to help you with your compensation research and identifying the pay ranges.
And if you’re ever surprised by the pay data you uncover, here’s something to remember: in any job offer you accept, you’ll ultimately be expected to manage the same responsibilities as anyone hired for that same position. Because of this, you should almost always push for at least the mid- to top-end of the total pay range for your specific product designer role regardless of your experience or background.
4) SEND A PRODUCT DESIGNER COUNTEROFFER TO THE RECRUITER
Now comes the exciting part: sending over your product designer counteroffer.
By following the first three steps above, you should now be fully prepared to present your product designer counteroffer to the recruiter by referencing your pay range data findings and how the benefits in your offer differ from other companies and/or your current role.
While you can present your new ask over the phone, we always recommend that you counter via email. Drafting an email gives you the time and freedom to write out exactly what you want to say, helping to minimize the risk of going off-topic. Sending your counteroffer through email also gives the recruiter something they can easily forward on and share internally with their team.
Whether by phone or by email, always present your counteroffer professionally and kindly—this is your first chance to showcase what you would be like to work alongside. To ensure proper communication, use our Counteroffer Drafts for examples to help you formulate a strategic counteroffer.
5) HANDLE ANY OBJECTIONS AND KNOW YOU ACHIEVED THE BEST PRODUCT DESIGNER SALARY
It’s possible that you’ll send over your counteroffer and the hiring team will immediately respond with an updated offer package. However, it’s much more likely they will come back to you with a list of reasons why they can’t make any increases or changes to the product designer salary.
If this happens, don’t panic—this is very normal. If you’re faced with these kinds of objections, respond professionally by stating you understand their constraints, but ask again if they could take your counter back to their team for one last look like we explain in our Objection Handling Scripts. You should still ask even if they insist their team will just say no.
Once they agree to take your thoughts back to their team, they should return with a better offer. If the updated compensation package aligns with the pay bands you researched and meets your needs, you should be ready to send a offer acceptance email to lock it in!
Mistakes to Avoid During Your Product Designer Salary Negotiation
Even though we’ve just explained how you can negotiate your product designer salary effectively, there’s still one more thing we need to go over: common mistakes made during negotiations. Below we’ve listed some of the top things you should make sure you avoid when you negotiate your product designer role.
AVOID SHARING SALARY EXPECTATIONS BEFORE YOU GET A JOB OFFER IN PRODUCT DESIGN
Many job seekers are unaware that sharing your salary expectations before you receive an official offer often works against you.
Here’s how this scenario could play out: If you share a lower compensation than what the company could offer, they will be incentivized to now offer you that lower compensation. On the other hand, if you share a number higher than what they could offer, there is a chance that they could become disinterested and choose a different candidate over you. During any job search or negotiation process, never forget that recruiting teams are working for the company, not you.
It also doesn’t make much sense to discuss your salary expectations before you learn more about the product designer role, its total compensation package, and whether those aspects feel like a good fit for you. After all, you’re also interviewing them to see if this role is something you want to pursue so be sure to overcome these tactics by responding like this.
DON'T BE AFRAID TO NEGOTIATE A PRODUCT DESIGN SALARY
Even though it could mean increasing their total career earnings, many job candidates don’t negotiate out of fear. In many cases, they are worried about offending the recruiting team or losing the job offer altogether.
However, you’ll be encouraged to know that we’ve helped facilitate hundreds of successful salary negotiations and we’ve never seen a company rescind a product designer job offer because of an attempted negotiation. Don’t let salary negotiation myths keep you from negotiating for improved compensation.
BE REALISTIC BY DOING YOUR PRODUCT DESIGNER SALARY RESEARCH
Even though product designer jobs are in high demand and their roles pay well, you should still be realistic about what compensation you ask for in your negotiation.
To do this, make sure that your research is thorough and specific to your exact role so that you only push for compensation that the company can realistically provide. For example, the compensation for a Nvidia product designer salary might look different than the compensation for a TikTok product designer salary.
The Bottom Line: Negotiate Your Product Designer Salary
We believe that all product designers can and should negotiate their job offers. Our salary negotiation coaching can help you effectively negotiate your job offer.
Negotiate your product designer salary with a professional salary negotiation coach. Our team has years of experience helping designers of all kinds negotiate for higher compensation.
We also have our How to Negotiate Your Job Offer and How to Negotiate Your Current Salary courses, and Salary Negotiation Templates if you prefer to learn at your own pace and want to gain the confidence and tools to negotiate your compensation.