Salary negotiation refers to the process of discussing and determining an individual's compensation package, including their base salary, benefits, bonuses, and other incentives. This involves communication between the employee and employer, where the employee presents their expectations and qualifications while the employer provides information on the company's budget for that position, market rates, and overall compensation philosophy. The goal of salary negotiation is to reach a mutually agreeable amount that satisfies both parties and reflects the value of the job being offered.