How to negotiate salary and navigate candidate expectations

How to negotiate salary in a competitive market

With Michael Page Talent Trends revealing 34% of organizations struggling to fill roles in the last year, it’s clear that attracting and retaining top talent has become a minefield. One hurdle often standing in the way is that tricky conversation: salary negotiation.

Understanding candidate expectations is key to a smooth negotiation process. With our research revealing over half (54%) of candidates see a higher salary as essential when considering a new role, it demonstrates the importance of being prepared to have an open and honest discussion about compensation.

So, how can you navigate salary expectations and secure that perfect hire? These insights will help you achieve a win-win outcome:

Should you negotiate salary?

But first, let’s determine whether you should negotiate salary. While most candidates expect and hope to do so, it may not be within your capacity to stretch your finances.

Before publishing your job description, you’ll need to complete a two-step process. First, assess your company’s budget and get a firm understanding of how much you can spend on a new hire. Then, perform market research to help you craft competitive offers.  

Get ahead with salary guides

For market research, salary guides will prove incredibly useful, as they provide the latest industry benchmarks for specific roles and locations.  

Michael Page offers a comprehensive suite of salary guides—covering Construction, Accounting and Finance, Engineering and Manufacturing, and more—packed with the most recent salary data for various roles across different industries and locations in the U.S.

Download your free copy today and ensure you're offering appealing compensation packages that attract top talent:  

Get your copy

Knowing the market value helps you craft competitive offers and with data-backed salary reports, you'll be armed with the latest data to navigate salary conversations with confidence.

Remain transparent

Be upfront about salary expectations early in the recruitment process. You can use a salary range in your job descriptions or discuss compensation during initial phone screenings. This transparency saves everyone time and prevents disappointment later.

Understand candidate needs

Salary is important, but it's not the only thing job seekers consider before accepting an offer.  

In a recent candidate survey, we found that when faced with a salary offer slightly below their expectations, over 40% said they’d be happy to negotiate for additional non-monetary benefits. Besides salary, the top five perks which candidates ranked as important were:

Private healthcare or insurance (53%)

Financial incentives, such as savings and stock options (50%)

Work-life balance initiatives, such as hybrid/remote work arrangements (45%)

Company pension plan (44%)

Additional holiday allowance (43%)

Benefits packages, flexible working arrangements, or professional development opportunities can all sway a candidate's decision. Discuss all aspects of the offer to find a solution that works for everyone.

Focus on value

Avoid only discussing numbers. Be sure to also highlight the growth opportunities and career trajectory the position offers.  

Additionally, explain the value you see in the candidate and why they deserve a specific compensation package. Some factors to consider when negotiating salary is an applicant’s...

• Relevant experience
• Long-term goals
• Unique skills
• References and referrals
• Personality

Prepare to negotiate (but be fair)

Negotiation is a natural part of the process. 40% of organizations reported struggling with matching salary expectations in our recent Talent Trends survey. Be prepared to discuss counteroffers, but remember, fairness is key. If a candidate's expectations are significantly outside the established range, explain your reasoning and explore alternative solutions.

While you may be eager to hear their response to your offer, give candidates time to decide whether it works for them.

By following these strategies, you can navigate salary negotiations with confidence and secure the best talent for your organization.  

Planning to hire? Our team of recruitment experts at Michael Page can guide you through the entire process.

Connect with us today.

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