The Cost of Lowballing: Why Honoring Compensation Expectations Matters in Hiring

In recruitment, transparency is key—yet time and time again, we see hiring managers undervaluing top talent by ignoring clearly communicated compensation expectations.

The Scenario

A candidate is upfront about their salary expectations, stating they need $150,000 to consider a move. The client acknowledges this, the candidate interviews exceptionally well, and everything seems aligned for a successful hire.

Then comes the offer: $120,000—the exact salary the candidate is already making.

Despite advice to offer at least $150,000, the client insists on starting low, thinking they can “negotiate up.” Instead of a back-and-forth discussion, the candidate feels undervalued, frustrated, and walks away entirely.

Why This Strategy Fails

Let’s put this into perspective. If you were bidding on a house with multiple offers, would you submit a lowball offer just to see if you could get a deal? Probably not—because in competitive situations, serious buyers make strong offers upfront.

The same principle applies to hiring. When a candidate has been transparent about their expectations, a lower-than-expected offer signals that:

• Their time wasn’t respected

• Their value wasn’t recognized

• Negotiation will be a struggle

Rather than setting the stage for a positive working relationship, the employer creates doubt and frustration. The result? They lose out on top talent.

The Takeaway

Hiring managers: If a candidate is forthright about what they need to make a move, honor that.

• Don’t start low just to see if they’ll take it

• Don’t force candidates into an unnecessary negotiation

• Do offer fair, competitive compensation from the start

In today’s competitive job market, companies that respect candidates' expectations will attract and retain the best talent. Those that play games? They’ll keep losing out.

Just pay people what they’re worth.

Would love to hear from others—have you seen this happen before? What was the outcome? 👇