Do you offer candidates more than their asking if it’s still within the budget?
Understanding Salary Offers: Should You Go Above a Candidate’s Asked Salary Within Your Budget?
When it comes to hiring, one common question that recruiters and employers often grapple with is whether to offer a candidate more than their stated salary expectation, especially when the offer remains within the company’s budget.
Consider this scenario: the allocated budget for a position is $25,000 annually. The candidate’s expected salary, however, is only $20,000. Should the employer extend an offer at the candidate’s asking price, or should the offer be closer to the budget? And more broadly, is it customary to go beyond a candidate’s requested salary when you have the flexibility?
This topic raises important questions about negotiation strategies and industry norms. Some hiring managers prefer to adhere strictly to the candidate’s stated expectations to avoid overpaying and to stay within budget constraints. Others might consider offering more than the asked amount if they believe the candidate is particularly valuable or if it increases their chances of closing the hire efficiently.
Your Experience and Industry Practices
From personal experience, there are times when employers or hiring managers unexpectedly offer more than the candidate’s asking salary. For example, I was fortunate enough in my previous role to receive an offer that exceeded my stated expectations—an experience that certainly influenced my perception of employer generosity and flexibility.
However, this phenomenon is not guaranteed and may not always be the standard practice. It can depend heavily on several factors:
- The competitiveness of the role
- The candidate’s unique skills and experience
- The urgency of the hire
- Organizational policies and compensation structures
- The perceived value of the candidate
Best Practices for Employers
If your company’s budget allows for some flexibility, consider the following approaches:
-
Evaluate Candidate Value: Determine whether the candidate’s skills, experience, and potential contribution justify exceeding their asking salary.
-
Be Transparent and Fair: Clear communication during negotiations helps build trust and ensures both parties are aligned.
-
Balance Budget Constraints and Hiring Goals: While staying within budget is important, making strategic exceptions can secure top talent and prevent prolonged vacancies.
-
Document Rationale: Keep records of your decision-making process for transparency and future reference.
Conclusion
While it’s not uncommon for some employers to offer candidates more than they initially ask, especially when they see high potential or urgency, it’s not a universal practice. Each hiring situation is unique, and decisions should balance organizational budget constraints with the need to attract and retain the best talent.
If you, as a candidate, found yourself offered more than your asking salary, it could be a reflection of the employer’s appreciation of your value or their negotiating approach. For employers, understanding industry practices and maintaining strategic flexibility can be crucial in building a strong, motivated team.
Have you experienced situations where a salary offer exceeded expectations? Share your insights or questions below!