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Hiring Processes & Workflows

Salary Negotiation: How Recruiters Can Help

8 min read
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Jeff Hammitt

Salary Negotiation: How Recruiters Can Help

You’ve found the perfect candidate. They’ve aced every interview, everyone loves them, and you’re ready to make an offer. But then they ask for more money than you budgeted. Now what?

The problem: Most recruiters avoid salary negotiations. They either give in too easily (costing money) or stand firm too rigidly (losing candidates).

The solution: Understand salary negotiations. Help facilitate them, set expectations, and find win-win solutions. You’ll close more offers and keep everyone happy.

“Salary negotiation isn’t about winning or losing - it’s about finding a solution that works for both sides. As a recruiter, you’re the bridge between the candidate and the company.” - Ramit Sethi, author of “I Will Teach You to Be Rich”

Why Salary Negotiation Matters

The reality: Salary negotiations are inevitable. Most candidates will negotiate, and how you handle it determines whether they accept or decline.

The numbers:

  • 70% of candidates negotiate salary
  • 85% of recruiters feel unprepared for negotiations
  • Good negotiations increase offer acceptance by 40%
  • Poor negotiations lose 30% of candidates

Real example: You offer $80,000. Candidate asks for $90,000. You say no immediately. They decline. You could have negotiated to $85,000 and closed the deal, but you lost a great candidate over $5,000.

Understanding Salary Negotiation

What it sounds like: Candidates asking for more money.

What it actually means: A conversation about compensation, benefits, and total package to find a solution that works for both sides.

Why Candidates Negotiate

1. They want fair compensation

  • Market research shows they’re worth more
  • They have competing offers
  • They want to be paid what they’re worth

2. They’re testing you

  • How you negotiate shows how you’ll treat them
  • Rigid negotiation = rigid company culture
  • Flexible negotiation = collaborative culture

3. It’s expected

  • Everyone negotiates, it’s normal
  • Not negotiating can seem weak
  • It’s part of the process

4. They have leverage

  • Multiple offers
  • Current job is secure
  • Skills are in demand

Real example: A candidate has 3 offers. They negotiate with all 3. The one that’s most flexible and collaborative wins. The one that’s rigid loses, even if the salary is similar.

Your Role in Salary Negotiation

As a recruiter, you:

  • Facilitate the conversation - Bridge between candidate and hiring manager
  • Set expectations - Help both sides understand what’s possible
  • Find solutions - Creative problem-solving to close deals
  • Advocate for both sides - Help candidate get fair offer, help company stay within budget
  • Close the deal - Get to yes for everyone

What you DON’T do:

  • Make final decisions - That’s for the hiring manager
  • Set salary - That’s for the company
  • Guarantee anything - You can’t promise what you can’t deliver
  • Pressure anyone - Don’t force decisions

Real example: Candidate asks for $10,000 more. You:

  1. Understand their reasoning (market research, competing offers)
  2. Present it to the hiring manager with context
  3. Help find a solution (maybe $5,000 more + better benefits)
  4. Facilitate the conversation until everyone’s happy

You’re the facilitator, not the decision-maker.

How to Prepare for Salary Negotiations

Before Making the Offer

1. Understand the budget:

  • What’s the salary range?
  • What’s the maximum you can offer?
  • What’s flexible (benefits, equity, etc.)?

2. Research the market:

  • What are similar roles paying?
  • What’s the candidate’s current salary?
  • What are competitors offering?

3. Understand the candidate:

  • What are their salary expectations?
  • Do they have competing offers?
  • What matters to them (salary, benefits, equity, etc.)?

4. Prepare your pitch:

  • Why this role is great
  • Total compensation package
  • Growth opportunities
  • Company culture and benefits

Real example: Before making an offer, you:

  • Check market rates: $80,000-$100,000 for this role
  • Know candidate’s current salary: $75,000
  • Know they have a competing offer: $85,000
  • Know your budget: $80,000-$90,000

You’re prepared to negotiate.

During Negotiation

1. Listen first:

  • Let them state their case
  • Understand their reasoning
  • Don’t interrupt or get defensive

2. Acknowledge their position:

  • “I understand you’re looking for $X”
  • “I can see why that’s important to you”
  • “Let me see what we can do”

3. Present your constraints:

  • “Our budget is $Y, but…”
  • “I can’t do $X, but I can do…”
  • “Here’s what’s possible…”

4. Find creative solutions:

  • Higher salary + different benefits
  • Lower salary + more equity
  • Signing bonus
  • Accelerated review

5. Close the deal:

  • Get to yes
  • Confirm details
  • Set next steps

Real example: They ask for $95,000. You:

  1. Listen: “I understand you’re looking for $95,000 based on market research”
  2. Acknowledge: “That’s a fair request, and I can see why you’d want that”
  3. Present constraints: “Our budget is $90,000, but I can do $90,000 + $5,000 signing bonus”
  4. Find solution: “Or we could do $88,000 with accelerated 6-month review to $95,000”
  5. Close: “Which works better for you?”

Common Negotiation Scenarios

Scenario 1: Candidate Asks for More Than Budget

The situation: They want $100,000, budget is $90,000.

What to do:

  1. Understand why (market research, competing offers)
  2. Present your constraints honestly
  3. Find alternatives (signing bonus, equity, benefits)
  4. If you can’t meet it, be honest and move on

What NOT to do:

  • Lie about the budget
  • Make promises you can’t keep
  • Get defensive
  • Give up immediately

Real example: They want $100,000. Budget is $90,000. You offer: $90,000 + $10,000 signing bonus (paid over 2 years) + accelerated review. They accept. You closed the deal creatively.

Scenario 2: Candidate Has Competing Offers

The situation: They have another offer for more money.

What to do:

  1. Acknowledge the competing offer
  2. Understand what they value (not just money)
  3. Highlight your advantages (culture, growth, etc.)
  4. See if you can match or get close
  5. If you can’t, wish them well

What NOT to do:

  • Dismiss the competing offer
  • Pressure them to choose you
  • Badmouth the other company
  • Give up without trying

Real example: They have a $95,000 offer. You offer $90,000 but highlight: better culture, faster growth, more interesting work, better benefits. They choose you because money isn’t everything.

Scenario 3: Candidate Asks for Benefits Instead of Salary

The situation: They want more PTO, remote work, or other benefits.

What to do:

  1. Understand what they value
  2. See what’s possible (some benefits are easier than salary)
  3. Negotiate the package, not just salary
  4. Get creative with non-salary compensation

What NOT to do:

  • Say no to everything
  • Not consider alternatives
  • Only focus on salary
  • Make it all or nothing

Real example: They want $5,000 more salary. You can’t do that, but you can offer: 2 extra weeks PTO, 1 day/week remote work, $2,000 professional development budget. They accept. You closed with benefits instead of salary.

Red Flags in Salary Negotiation

Red flag 1: Unrealistic expectations

  • Problem: They want 50% more than market rate
  • Solution: Help them understand market rates, but if they’re unreasonable, move on

Red flag 2: Only focused on money

  • Problem: They don’t care about anything except salary
  • Solution: That’s okay, but make sure they’re the right cultural fit

Red flag 3: Bad negotiation behavior

  • Problem: They’re aggressive, rude, or manipulative
  • Solution: How they negotiate shows how they’ll work - red flag

Red flag 4: Constantly moving goalposts

  • Problem: Every time you meet their ask, they ask for more
  • Solution: Set boundaries, if they keep moving, walk away

Real example: They ask for $90,000. You offer $90,000. They ask for $95,000. You offer $92,000. They ask for $100,000. That’s a red flag - they’re not negotiating in good faith.

Best Practices for Salary Negotiation

1. Be transparent:

  • Honest about budget and constraints
  • Clear about what’s possible
  • No surprises

2. Be collaborative:

  • Work together to find solutions
  • Not adversarial
  • Win-win mindset

3. Be prepared:

  • Know the market
  • Understand both sides
  • Have alternatives ready

4. Be respectful:

  • Respect their position
  • Don’t pressure or manipulate
  • Professional and courteous

5. Be creative:

  • Think beyond just salary
  • Total compensation package
  • Find creative solutions

6. Know when to walk away:

  • Some negotiations won’t work
  • That’s okay
  • Better to walk away than make a bad deal

Real example: You’re transparent about the $90,000 budget. You’re collaborative in finding solutions. You’re prepared with market data. You’re respectful of their position. You’re creative with alternatives. You know when to walk away if it’s not working. That’s how you negotiate well.

Resources and Tools

Salary research tools:

  • Glassdoor - Salary data by role and location
  • Payscale - Salary and compensation data
  • LinkedIn Salary - Salary insights
  • Bureau of Labor Statistics - Government salary data

Negotiation resources:

  • Negotiation courses - Learn negotiation skills
  • Salary negotiation guides - Best practices
  • Case studies - See how others negotiate

Market research:

  • Industry reports - Salary trends
  • Competitor analysis - What others are paying
  • Location data - Cost of living adjustments

Next Steps

For recruiters:

  1. Learn negotiation skills - Take courses, read books
  2. Research markets - Know what roles pay
  3. Prepare for negotiations - Have alternatives ready
  4. Practice - Get comfortable with negotiations
  5. Track results - See what works and what doesn’t

For hiring managers:

  1. Set realistic budgets - Based on market research
  2. Be flexible - Consider total compensation
  3. Trust recruiters - Let them facilitate
  4. Make decisions - Don’t drag negotiations out

For candidates:

  1. Research market rates - Know what you’re worth
  2. Know your priorities - What matters to you?
  3. Be reasonable - Don’t ask for unrealistic amounts
  4. Negotiate respectfully - Professional and collaborative

Conclusion

Salary negotiation is part of the hiring process. As a recruiter, you facilitate these conversations, help find solutions, and close deals. Do it well, and you’ll close more offers and keep everyone happy.

Remember:

  • Most candidates will negotiate - be prepared
  • Be transparent, collaborative, and respectful
  • Think beyond just salary - total compensation package
  • Know when to walk away - not every negotiation will work
  • Your role is to facilitate, not decide

Do this right, and you’ll close more offers and build better relationships with candidates.

Jeff Hammitt

Jeff Hammitt

Recruiting Expert

Jeff Hammitt is a recruiting expert with years of experience in talent acquisition and building high-performing teams.

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