How to Negotiate a Job Offer When You Get a Lowball Salary

How to Negotiate a Job Offer When You Get a Lowball Salary

A dirty little secret of recruiting was exposed on social media. An internal recruiter bragged about offering a candidate $85,000 for a job that had a budget of up to $130,000. In her social media post, she said she didn’t have the “bandwidth to give lessons on salary negotiations” in her social media post.

For many job-hunters, the recruiter didn’t share anything they didn’t know already. Here’s how to negotiate a job offer when you get a lowball salary offer.

How do companies set total compensation for a role?

Companies typically have a budget for a job, often expressed as a range. For example, a company might benchmark a role by cash salary and have separate benchmarks for bonuses or benefits like stock-based compensation.

When a job is listed on a company’s career page or job board, the job posting lists a corporate title, such as “assistant vice president” or “lead.” Titles aren’t consistent, making it hard to figure out what the compensation might look like. Some companies hand out titles as if they were candy, and it’s here where the problems start.

Why you might not receive a top job offer

Companies have a budgeted salary and total compensation range before job interviews begin. When a hiring manager provides a salary range, job candidates often anchor to the high point. The candidate believes they have all the right skills, experience, and background and deserve a high salary.

Candidates might feel offended or as if they have been lowballed if they don’t receive a salary offer at the top of the range. The problem is that the person who believes they deserve the largest salary often doesn’t have the best background or fit for the role.

How to negotiate a job offer when you get a lowball salary

Pay transparency is a complete game changer and should bode well for job searchers and current employees.

Companies have treated salaries and compensation packages as a deep, dark hidden secret for too long. It is an unfair and one-sided way of doing business that is detrimental to people seeking a new job.

After an arduous and emotionally draining interview process, an offer could be made that is far below the expectations of the eager candidate. The result is a complete waste of time and energy for everyone involved. The experience makes the company look bad, making it harder for the company to recruit and hire others in the future.

Jack Kelly is the founder, CEO and executive recruiter at one of the oldest and largest global search firms. He has placed thousands of professionals with top-tier companies for more than 20 years.

This article was written by Jack Kelly for Forbes and was lightly edited and published with permission.