Salary FYI

ZOPA (Zone of Possible Agreement)

Employment

The range between the employer's maximum budget and the candidate's minimum acceptable salary, within which a mutually beneficial agreement can be reached.

## ZOPA (Zone of Possible Agreement)

ZOPA is the overlap between what the employer is willing to pay and what the candidate will accept. If there is no overlap, no deal is possible.

### Visualization

```
Candidate minimum: $85,000 ──────────── $110,000 (aspirational)
Employer range: $80,000 ──────────── $100,000 (budget cap)
ZOPA: $85,000 ─── $100,000
```

### Finding the ZOPA

Neither party typically reveals their true limits. Through discussion, questions, and offers, both parties probe for the ZOPA boundaries.

### Expanding the ZOPA

When there is no ZOPA on salary alone, expanding to other terms can create one:
- Signing bonus to bridge the gap.
- Equity or stock options.
- Flexible work arrangements.
- Earlier review cycle.
- Additional PTO.

### No ZOPA

If the employer's maximum is below the candidate's minimum and no creative solutions exist, the negotiation should end amicably.