Navigate Lowball Offers Like a PRO
Preparing to present a candidate with a lowball compensation offer?
You might want to think again.
We’ve seen it happen time and time again – a company sets out a lofty budget for the salary of a new position, but when it comes time to make their top candidate an offer, they go in with a compensation that is lower than low. Some candidates will accept the offer, but that doesn’t mean companies should take that as a green light to continue down the path they’re on.
The topic of lowball offers is part of a bigger conversation on pay transparency, but we fully believe that this one deserves its own post. The reason for this being that we’ve heard a lot of talk on this polarizing act throughout our Collective’s networks – one side making the argument that it should be on the candidate to know how to properly negotiate their salary (which we agree with to a certain point), and the other says that companies should come out of the gates with a strong offer that truly aligns with the candidate’s experience and company fit.
Where do we stand? From an insider’s perspective on the matter, we recommend against lowball offers. Here’s why:
Why Companies Shouldn’t Present Lowball Offers
1. You’ll Miss Out
The number one – and most important – reason to NOT present your candidate with a lowball offer is that you run the risk of losing a strong candidate who aligns with your company. In today’s market, focusing on your team’s alignment to the organization along with culture-fit is of the utmost importance. Presenting candidates with low comp offers may drive these perfect-fit, top-tier individuals away from your company rather than attracting them.
2. Always Remember Optics
Optics are everything. When you present a candidate with a lowball offer, you create space for potential damage to your brand’s reputation, especially if a candidate feels like they have been undervalued and their time spent in your hiring process has been wasted. There is always potential for candidates presented with these low offers to share their experience with their network on LinkedIn or even social media – not ideal if you knew the candidate was worth more and had budget to go higher from the get-go!
3. Invest in Your People & Reap the Rewards
Remember that you’re playing the long game. In this game your goal should be to invest in the perfect person for your company, and when you do so, your offer should reflect it. Ensuring your offer is on par with market value, expectations, and the candidate’s experience or potential could mean that your new team member stays with the company for a longer period of time, typically driving better results and fostering company culture all the while.
On the Candidate Side? Handle Lowball Offers like a PRO with These Three Tips:
1. Know Your Worth
Presented with a lowball offer but your gut is telling you it doesn’t feel right? Trust that intuition and know your worth. Let the hiring manager or recruiter know that you’d like time to review the offer. Do some salary research, ground yourself in what you can bring to the table, and go back in a non-confrontational manner with your expected compensation in the form of a counter offer.
2. Remember Your Values
Not sure if the company will be flexible upwards of the initial offer? Check in with your values. Look at additional compensation or benefit factors if they are unable to move on base salary. This could come in the form of additional vacation days, a yearly bonus, a signing bonus, or new tech. If you feel that you’re aligned with the company and are ready to take the leap, one of these things could help you make the final decision.
3. Go With Grace
Remember that it is always okay to walk away from the offer. If the company isn't going to meet your expectation – especially after you’ve given your best shot at a counter offer – it's ok to move on and find your perfect-fit company. We promise, it’s out there!
Looking to hire top talent and need support navigating the market? We would love to help you build your team with purpose and keep candidates engaged throughout the process. You can connect with us here – we can’t wait to connect!
If you’re reading this as an employee looking to make your move – we want to hear from you! We have a myriad of open roles with high-growth, purpose-led companies waiting to add the right talent to their team. Click here to see if your dream job is just an email away!