How to Negotiate a Lowball Salary Offer

Landing a good job is the career equivalent of running a marathon. Preparing a resume and cover letter, clearing a half-dozen or so company interviews, having references thoroughly checked, and beating out dozens of other qualified job applicants can be exhausting, even if that process ends with hearing, “You’re hired.”

Consequently, it’s no surprise that most career professionals don’t invest the time necessary to negotiate a successful salary. Instead of driving a hard bargain and getting the best job compensation possible, new employees too often take their foot off the pedal and settle for whatever cash, perks, and benefits the company offers.

That scenario happens more than you likely think. A recent Yale University study concluded that 56% of new hires didn’t negotiate a salary before accepting the job.

Career experts say that’s not a good idea in the current economic climate.

Low job offers are prevalent right now, says Lisa Dupras, owner of Elev8 Coaching & Resumes in New York, N.Y. “As of June 2024, the US unemployment rate was 4.1%, indicating a full-employment economy, which generally results in more competition for open jobs.”

Dupras says she’s seeing professional job postings with over 1,000 applications. “Greater job competition results in employers having the luxury of picking and choosing among candidates, sometimes resulting in low-ball salary offers,” she notes.

Eight Tips to Land the Best Salary Package

Whether you’re seeking a robust compensation package with a new employer or are weighing a new salary with a current employer, career specialists advise never taking the first offer and negotiating the best deal you can get.

These salary negotiating tips should give you leverage and help you finish the job.

Don’t Talk Yourself Out of a Higher Salary

Confidence is everything in a salary negotiation, so either opting out early or taking a half-hearted attitude to the table won’t get you the compensation you seek.

Unfortunately, that’s the attitude many new hires take when discussing salary with employers. According to the Yale study, new hires essentially talk themselves out of a higher compensation package over fears of appearing “greedy” by new employers or worrying about the job being “rescinded” due to a high salary request.

According to Career Builder, companies intentionally cut salary offers to leave some wiggle room for compensation negotiations. Furthermore, in a separate study from Salary.com, 87% of employers say they’ve never rescinded a job offer over a higher salary request.

That’s all good news for career professionals reluctant to negotiate a better salary, as the odds are highly in your favor when asking for more cash from an employer right out of the gate.

Do Your Homework

If you receive a lowball job offer for a job you covet, the first step is to remain calm and not react impulsively.

“Take the time to thoroughly review the offer and understand all its components, including benefits and other perks,” says Amy Spurling, founder and CEO of Compt, a benefits and perks services provider in Boston, Mass. “You need to look at the total compensation. Then, research the average salary and comp for the position in your industry and geographic area to understand what a fair offer should look like clearly.” Also, make sure to check Glassdoor or Salary.com and LinkedIn Jobs to get more clarity on your job salary range.

The benchmarking information you uncover during a due diligence process “will be crucial” for your salary negotiation,” Sperling notes.

During your salary vetting process, also research key factors like industry, location, professional experience versus education, remote versus hybrid versus onsite labor, says Meredith Bowen, co-founder at the professional recruiting firm Walker Bowen Talent Partners in Camp Hill, Pa.

“These factors can all play into the salary numbers, so job seekers need to keep that in mind,” Bowen says. “You need to look at their experience from the eyes of the hiring team, not from an egocentric standpoint. For example, if the employer is asking for senior and the job seeker has four years of experience, that is not senior, even if your current job title indicates otherwise.”

Establish High Goals

Once you negotiate a salary with an employer, leave room for flexibility, but always with your highest desired compensation package as a priority.

“This mindset moves you away from an employer’s low offer,” says Andres Lares, Managing Partner at Shapiro Negotiations Institute, a Baltimore, Md.-based global training and consulting firm. “Keep your highest salary number in mind goals, reinforce your self-worth, and focus on the negotiations.”

Be Okay with Silence and Delays

When engaging with an employer, accept the reality of short-term silence and communication gaps from an employer. Chances the hiring manager is checking with other executives on a counter-offer.

It’s okay for you to do the same. “For example, once you get an offer from the employer, say, “Thank you. Now I’ll need time to think about it,” and follow up as soon as possible with a counteroffer or questions,” Lares advises.

At this juncture, you can also properly frame your counteroffer.

“Respond to low offers positively,” Lares says. “For example, instead of turning down a low offer, say, “I appreciate your position, yet I was expecting a higher number, given my employment value, salary expectations, and the industry standards?” This tactic keeps the door open further negotiations.”

Negotiate More Than One Item At a Time

Don’t be reluctant to ask for more when negotiating a new salary.

“Negotiating over only one aspect, such as salary, can quickly become a zero-sum game,” Lares says. You can give both sides a win by also negotiating things like a three-day remote work week or job responsibilities.”

Heather O’Neill, career expert at CPRW at Resume Now in San Francisco, California, says job benefits are also a great area for negotiation and can add value to your total compensation package.

— Additional vacation days, health benefits, or retirement contributions.

— Professional development: Opportunities for training, certifications, or further education.

— Flexible work arrangements: Options for remote work, flexible hours, job sharing, or compressed workweeks.

— Job responsibilities: Adjusting the scope of work or job duties to better align with the offered salary.
Performance bonuses: Incentives based on performance metrics.

“These alternatives can enhance the overall compensation package and provide a more satisfying work experience,” O’Neill says.

Know Your Negotiating Partner

Generally, the employer’s human resources manager will run the negotiations.

“If there isn’t an HR representative, then it may be someone in operations or the most senior leader involved in the hiring decision,” Bowen says.

Check the Salary Range

It’s also highly helpful to know if the state the employer resides in has salary transparency laws.

“Many states require employers to share their salary ranges,” says Lisa Dupras, owner of Elev8 Coaching & Resumes in New York, N.Y.

Dupras says Paycom is a good resource for finding pay transparency issues that could give you an edge. “Use the gathered information to formulate a salary range for negotiation use,” she advises. “It should represent the employer’s acceptable salary range.

If the potential employer shares their salary range or you get it from government or private industry sources, check the information against your researched information. “If the salary offer is within expectations, consider asking for a counteroffer,” Dupras says. “Use your researched information to back up any requests and watch for clues as to whether the potential employer is open to a counteroffer (quick responses via text, email or phone are always a good sign”)

Be Prepared to Walk Away

There may be a point where a job seeker says “no” and walks away from the new job due to a lousy salary – and that’s okay.

“A job seeker should consider walking away if the final offer doesn’t meet their essential financial needs or professional expectations, even after attempts to negotiate,” O’Neill notes.

At that point, assess whether accepting a subpar offer would negatively impact your finances, job satisfaction, or career trajectory. “Depending on where you live and what you do for a living, accepting a low-ball salary now can impact your earning potential for years to come,” O’Neill says.

If you finally decide you’re unhappy with the salary, decline the offer as soon as you determine it’s not the right one.

“If the employer is no longer negotiating and there is no acceptable movement in the right direction within a week or so, it’s time to move on,” Bowen says. “Everyone loses patience and interest if the scenario goes beyond that. The employer may lose interest and pull the offer if it gets too drawn out or petty.”

Additionally, don’t waste the employer’s time by accepting an offer and starting a job for what you deem to be a lousy salary.

“It’s very costly for employers and doesn’t put the job seeker in a good light either,” Bowen adds. “You never know who you’ll run into in the future, so it’s best to remain professional and decline the offer.”