Hiring the right candidate is about more than just their qualifications—it’s about creating a strong foundation of trust, respect, and motivation. Unfortunately, lowball job offers often derail this process, leaving candidates disheartened and employers scrambling to recover.
Here’s why starting with a low offer can backfire and how offering your best out of the gate can set the stage for success.
What Happens When You Lowball a Job Offer?
Lowballing might seem like a harmless negotiation tactic, but it often does more harm than good. Let’s examine what typically unfolds:
- The Candidate Feels Undervalued
When a candidate receives an offer significantly lower than their expectations, it signals that the company doesn’t value their skills or contributions. This perception can tarnish the candidate’s enthusiasm and trust. - The Magic Is Lost
The moment an offer is presented is when candidates are most excited about the role. A lowball offer replaces that excitement with disappointment, making them question whether they made the right choice to engage with your company. - The Candidate Walks Away
Many candidates won’t even counter a lowball offer. They see it as a red flag, anticipating struggles for fair pay during future promotions or raises. This leads to the loss of top talent and wasted time for everyone involved.
A Real-World Scenario
Here’s a typical example of how lowball offers go wrong:
- A candidate interviews for a role and expresses a salary expectation of $80,000, well within the company’s budget.
- The hiring manager, aiming to “test the waters,” offers $60,000.
- The candidate declines without countering, feeling undervalued.
- The manager scrambles to increase the offer to $72,000, but the candidate is no longer interested, citing wasted time and a lack of trust.
This interaction demonstrates how a low offer not only demotivates candidates but also damages the company’s reputation as an employer.
Why Lowball Offers Hurt Your Hiring Strategy
- Top Talent Walks Away
Skilled professionals are in high demand. A low offer gives candidates the impression that the company is either out of touch with market rates or unwilling to invest in its employees. - Damaged Employer Brand
Word travels fast. A poor candidate experience, including lowball offers, can harm your reputation in the industry. Future candidates may hesitate to engage with your company. - Wasted Time and Resources
Every unaccepted offer means restarting the hiring process, costing you time, money, and productivity. It also delays filling the role, putting additional strain on your existing team. - Weakened Team Morale
Offering less than market value sets a precedent that can demotivate future employees, affect team chemistry, and even lead to higher turnover.
The Case for Offering Your Best Salary Upfront
- Shows Respect for the Candidate
A strong offer demonstrates that you value the candidate’s skills and the contributions they will bring to the team. - Builds Trust and Confidence
Candidates who feel respected and valued are more likely to accept offers and enter the role motivated to succeed. - Speeds Up the Hiring Process
When you present your best offer upfront, there’s less back-and-forth negotiation, making it easier to close the deal quickly. - Enhances Employee Retention
Starting with fair pay sets a positive tone for the employee’s tenure, reducing the likelihood of dissatisfaction and turnover. - Boosts Employer Brand
Positive candidate experiences enhance your reputation as a desirable employer, attracting more top talent in the future.
How to Avoid the Lowball Trap
- Research Market Rates
Use salary data to determine a fair range for the role based on industry standards, location, and the candidate’s experience. - Understand Candidate Expectations
Ask about salary expectations early in the process and align them with your budget. - Be Transparent
If there are budget constraints, communicate them clearly and offer non-monetary benefits to balance the offer. - Invest in Competitive Compensation
Paying employees fairly is not just an expense—it’s an investment in your company’s growth and success. - Focus on the Big Picture
Consider the long-term value the candidate will bring to the organization, rather than short-term cost savings.
Final Thoughts
A lowball offer might save money in the short term, but it’s a costly mistake in the long run. The hiring process is an opportunity to build trust and excitement with potential employees. Starting with a competitive offer shows candidates that you value their expertise and sets the foundation for a positive working relationship.
Remember, the goal isn’t just to fill a role—it’s to create a motivated, engaged team that drives your company’s success. By offering your best salary upfront, you can attract top talent, strengthen your employer brand, and ensure long-term retention.