When to negotiate and when not to negotiate

A recruiter plays a critical role in the hiring process, and one of your responsibilities is to negotiate salary and other benefits for your candidates. As you know, this can be a delicate process - to put it lightly - and requires finding a balance between the needs of the candidate and the hiring company. There are times when it’s appropriate to negotiate and times when it’s not. How do you know? Here are some scenarios where it is appropriate and not appropriate for a recruiter to negotiate for their candidate:

When it's appropriate for a recruiter to negotiate for their candidate:

It’s our job to negotiate for all of our candidates if they want us to and if we believe that they have negotiable points. We'll help them decide this based on a number of factors.

For example, when the candidate is highly skilled or uniquely qualified. If the candidate brings unique skills, experience, or qualifications to the table that are hard to find, and you know they are head and shoulders above the rest, negotiating is usually a good idea. Similarly, if a candidate is considering multiple, competitive job offers, a recruiter can negotiate to make the company's offer more attractive. This could include not only salary, but also other benefits like flexible work arrangements, more vacation time, or other perks.?

Candidates should share with their recruiter the point at which they will walk away from an offer. Know what you will accept and not accept before going in so goal posts are not moving at the last minute. And be clear with the recruiter, or company, up front about what your non-negotiables are. That way it shouldn’t be a surprise at the offer stage if you cannot accept a role at a lower salary. Don’t apply for a role that doesn't meet your requirements and with the intention of trying to up the salary at the end.

It’s also important to have an understanding of salary benchmarks and compensation trends. And this can change with the wind. In a candidate’s market, you’ll have more wiggle room, while in an employer’s market you will see less.?

In a simple example of supply and demand, in 2022 we saw an extraordinary demand for recruiters and, in order to secure them, businesses started dramatically increasing pay rates. It didn't take long for candidates to realize this and start taking advantage of it and raising their requirements. And it worked. Many of these people saw dramatic pay increases – either negotiating for themselves or through a recruiter. It didn’t matter who was doing the negotiating; candidates got what they wanted because demand was so high. But there is a downside to this.

In 2023 inflation has affected the market and for those people now the shoe is on the other foot – rather than being the ones in charge of negotiations, employees are finding that their negotiations are centred around keeping their jobs.?

For candidates, there are still opportunities for your recruiter to negotiate for you, they will just be coming at it from a different place and in a different market. In fact, you probably need the support of a recruiter more than ever now.

That doesn’t mean you need to accept an unreasonable offer, of course. If a company's offer is below the current market rate for similar positions in the same industry and location, a recruiter should negotiate for a more competitive offer. You don’t want to put a candidate in an unsustainable position.

Negotiation is not an easy task. It takes a lot of knowledge and experience. Ensure that the recruiter you are working with has the skill set that you need to do the right thing and get the right result.

When it's not appropriate for a recruiter to negotiate for their candidate:

While it’s important not to undervalue your candidate, it’s also important to know when negotiating for them might actually be undermining them. If you push too hard in the wrong circumstances, you might cost them a job they need to pay the bills and feed themselves and their family. Negotiations at the offer stage should only be made in joint agreement with the candidate and with the candidate’s approval.

Again, knowing the market is key. If an offer is below what the candidate was? hoping for but is actually in line with or better than the current market rate, and offers a fair benefits package, you may have to meet the company where they are. This also applies when the candidate is missing some key qualifications and experience. If the company is taking a chance, this is something to be aware of.

Another time when it might not be a good time for negotiations is when the company has clearly communicated that this is their final offer. Pushing too hard in this case could risk souring the relationship with the company and losing the job offer altogether. It's not unheard of for a company to withdraw an offer if they feel that the candidate is purely trying their luck. A best and final offer is often just that - and going back looking for wiggle room is a dangerous game to play.

Is the candidate happy with the offer? Even if you think they should go for more, maybe they don’t want to and you don’t have to override them. Respecting the candidate's wishes is paramount.

Recruiters perform a balancing act between parties. They best know exactly when to push and when not to push. The worst push too hard, or not enough, with costs to both sides.?

Maintaining good communication is imperative and so are putting those listening skills to work to reach the best agreement for everyone.