The moment you fall for an incredible candidate, everything in your being probably tells you to fire off that offer letter and lock it down right away. In reality, there’s one final hurdle you need to get through before handing over that onboarding packet: the salary negotiation.
Whereas discussing salary used to be a much-dreaded part of the hiring process, today’s pay transparency laws require more information up front, like a posted salary range for most jobs in a dozen-plus states. The result? Most candidates walk in with more information than they used to, and negotiating is now seen as a normal, expected part of hiring rather than something adversarial.
Even so, negotiating a salary can feel like a fraught process, and disappointments or misunderstandings at this stage can color a candidate’s entire experience with your company. Here's how to run the conversation in a way that preserves your own requirements while honoring the candidate’s needs.
Salary negotiation tips for employers
Playing hardball can be—well, hard—no matter which side of the table you’re on. Your candidate is thinking about a million things throughout the hiring process, especially during the actual negotiation. It can be difficult to follow one strict philosophy instead of feeling out the situation. Here are a few ways you can make the process go smoothly as the hiring manager while still communicating the actual substance of the offer.
1. Before you begin, get comfortable with the salary range for the role
The highest and lowest salary you’re willing to pay will give you guardrails as you walk into the negotiation. And even when a salary range is posted in the job description, there is often still lots of room for negotiation, depending on a candidate’s skills, expectations, and experience.
If you’re the one throwing out the opening bid, try not to pick the highest amount you can possibly pay. Let’s say your candidate bounces back with a counteroffer and you can’t meet them any higher. Without having room to expand salary and benefits, it can make your candidate feel a bit crushed.
The funny thing is, even if the offer is enticing, accepting it straight out can also make both sides feel weird. In the book Secrets of Power Negotiating, author Roger Dawson explains that this phenomenon doesn’t just occur because people want the best deal possible. His research shows that if a person agrees to the first offer or counter-offer, either side can have these two reactions.
They wonder if they could have done better, or
They think something isn’t right
Both of these can cause damage to the relationship down the road or make it more difficult to finish the negotiation. That’s why it’s key to carve out some wiggle room before entering the ring. And of course, take the time to conduct market research and offer a figure that aligns with the current market rate for the role. If you can’t match industry standards, your candidate may go elsewhere.
2. Personalize the offer as much as you can
Before barreling forward with a number, don’t underestimate how powerful it can be to get a solid handle on what the candidate is looking for, both in the role and in the rest of their professional life. A generic offer competes on salary alone; a personalized one competes on everything.
Use the conversation to explain how the whole package—not just the base number—reflects how much you want this person on the team.
With this information in tow, you can tailor the offer beyond base salary to exactly what makes sense for their situation. For example, if they have a growing family, a flexible work schedule, remote work agreement, benefits, health insurance, and flexible paid time off (PTO) may be more appealing to them than employee equity or other perks.
For another candidate, financial incentive might be just the thing that tips them into accepting an offer. If you can’t meet a candidate’s salary expectations with their starting salary, other additions can go a long way in cushioning your offer, like:
A signing bonus
A stronger 401(k) match, if your retirement benefits are competitive
Future promises for a salary increase (dependent on a positive performance review)
Use your discussion to explain how the total compensation package maps to your excitement for bringing them on the team.
One caveat: Equal pay laws in most states require you to have a defensible reason for why one offer differs from what similarly situated employees are paid. Be sure to decide in advance which aspects of your offer can move (start date bonus, PTO, remote flexibility) and what can't, and write down the reasoning whenever you deviate from your standard range. It protects the business and it makes the negotiation faster, because you're not inventing the rules on the fly.
3. Offer your support
Emotions play a big role in the compensation conversation. Fortunately, the more you understand your own emotions and anxieties, the more you’ll be able to understand your candidate.
Common anxiety triggers include feeling a lack of control of the situation and a high level of uncertainty about the outcome. By making yourself available and open, you’ll be able to better manage those anxieties for both you and your candidate.
First, give your candidates ample time to make a decision. Then, offer your time to help them think through any parts of the offer they may be stuck on.
Here are a few examples of what you can say:
“Take your time thinking things over—this is an important decision for you.”
“I’ll check in with you later this week.”
“You’re awesome and we really want you. Let me know how I can make that happen.”
“I’m here for you if you want to talk about any part of the offer.”
“If you want to talk to anyone else on the team, I’d be happy to set that up.”
And finally, don’t forget to give them a date for when you want to hear their final decision.
4. First salary rodeo? Practice makes perfect
No two negotiations are the same. Each one is completely unlike any other before it, which is why it’s so important to get experience with the process before you jump in.
It might feel awkward at first, but ask your friends and colleagues if you can role play with them (without baring all about your candidate). It can be eye-opening for you to take turns playing the candidate and having a friend play you. This helps you tackle a real challenge of regular negotiations: You rarely get a real-time reaction. Unless you explicitly ask for feedback, you usually don’t hear from the other party about how you came across during negotiations. But through roleplaying, you can better prepare yourself for the next time around.
Salary negotiations might feel a little scary, whether you’re the one hiring or the one trying to get hired. But with these pointers in mind, you’ll be able to mosey into any negotiation and clinch the candidate you want.
FAQs
Do I still need to negotiate salary if I've already posted a pay range?
Yes. Posting a pay range to comply with state transparency laws doesn't end negotiation—it just sets the boundaries within which a negotiation can occur. Candidates commonly counter within the posted range, so leave room in your opening offer rather than starting at the top with nothing left to give.
Can I pay two candidates in the same role different salaries after negotiating?
Only with a defensible, documented reason. Equal pay laws in most states require that any deviation from your standard range be justified by factors like experience or scope, not negotiating skill alone, so decide in advance what can move and record why whenever an offer differs from your baseline.
What can I offer a candidate if I can't meet their salary expectations?
Look beyond base pay. A signing bonus, extra PTO, a stronger 401(k) match, a learning and development budget, or an accelerated first performance review can all add real value without changing the salary number, and are often easier for a hiring manager to approve than a base pay increase.
How should I open a salary negotiation with a candidate?
Open with an offer that has room to move, not your ceiling. If you've already posted a range, avoid starting at the top with nothing left to give—leaving space for a counteroffer keeps the conversation collaborative instead of making it feel like a take-it-or-leave-it ultimatum.
Is it normal for candidates to negotiate their job offer?
Yes. Negotiating an offer is now a normal, expected part of hiring rather than an aggressive move. Many employers build some room into their opening offers anticipating a counter, so a candidate who negotiates respectfully is simply engaging with the process as intended, not creating friction.
Quick note: This is not to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer or HR expert for specific guidance.
