Why Did I Get a Lowball Offer?
Understanding Compensation in Today’s Job Market
It’s a competitive job market, right?
Good candidates are in high demand.
So, why did I just get a lowball offer on salary from my prospective employer?
That’s a good question.
In an age where job seekers are armed with more information than ever, the salary dance between employers and candidates has become increasingly complex. Pay transparency laws are changing the game, and while they provide greater clarity, they’ve also introduced new challenges for employers and job seekers alike.
The Impact of Pay Transparency
As of November 1, 2022, New York City’s Pay Transparency Law requires employers with four or more employees to disclose salary ranges in job postings. This law was a game-changer for job seekers and current employees alike, eliminating guesswork and allowing candidates to know upfront if a role aligns with their salary expectations.
For existing employees, this transparency sheds light on whether their compensation is equitable compared to new hires. Since the law took effect, other regions have adopted similar legislation, creating a ripple effect across the nation. According to a study by Payscale, organizations that embrace transparency are 30% more likely to retain employees. But the shift isn’t without challenges—especially for employers juggling internal pay equity concerns and candidate expectations.
Why the Lowball Offer?
Even with posted salary ranges, candidates often expect offers at the higher end, which may not align with an employer’s budget or priorities. Companies face a tough balancing act due to:
- Budget constraints: Employers may set conservative offers to align with financial goals.
- Equity concerns: Offering higher salaries to new hires could alienate existing employees and create internal tensions.
- Market testing: Some employers test whether candidates will accept less, knowing they hold the power in a competitive job market.
On the flip side, candidates who come in underprepared or undervalue their worth may inadvertently signal they’ll accept a lowball offer.
How to Protect Yourself
Before heading into an interview, do your research. Resources like Glassdoor, Salary.com, and other compensation sites offer a wealth of salary data. Understanding the salary benchmarks for your role, industry, and location allows you to set realistic expectations and negotiate effectively.
If You Get a Lowball Offer
If you are lowballed, but still want the position and the company, you’ll need to know how to negotiate salary without jeopardizing your prospective employment. Almost anyone in a hiring role expects some discussion about compensation. Job seekers must know how to tactfully negotiate salary. Once an offer has been extended, the time between the offer and your acceptance is your period of greatest leverage.
Why? Because the employer has narrowed the field of candidates and chosen their favorite. For many, it’s been an exhaustive sourcing and interviewing process. They want their top pick to accept and are most willing to listen to reasonable requests, as long as they align with their work culture and budget constraints.
If you decide to counter an offer, consider this approach:
“I’m very pleased to be offered this opportunity, but honestly, I’m disappointed. I believe the salary doesn’t take into consideration the value I bring to this position. My expectations were for the high end of your range, given my background – and I believe I deserve it.”
Be prepared to substantiate your request with examples of your qualifications and achievements. You might also suggest a salary higher than you expect, leaving room for the company to counter. However, if the offer is firm and non-negotiable, the decision rests with you: can you accept the lower number, or is it time to walk away?
Employers face a similar dilemma: how badly do they want to make this hire? Is it worth sacrificing a great candidate if the budget allows for flexibility?
Keeping the Salary Discussion Conversational
When countering an salary, both parties should keep the tone conversational—not demanding or condescending. The goal is to maintain the mutual goodwill that brought you to this point.
A candidate asking for too little may signal undervaluation, while an employer offering too low may appear indifferent. On the other hand, an overly aggressive ask or offer can tarnish the excitement of a new hire. If an impasse arises, both parties should consider alternative perks:
- Remote or hybrid work options
- Professional training opportunities
- Additional vacation or sick days
- Contributions toward insurance, commuting, or childcare
- Bonus plans or performance incentives
- Flexible scheduling or more frequent reviews
Once an agreement is reached, a formal offer should include all compensation details in writing.
The New Normal in Salary Negotiation
The best salary negotiations and new beginnings are about compromise, balance, and mutual belief that the deal struck is the best one possible—regardless of which side of the interview desk you sit behind.
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Is your current salary not equal to your skills, experience and overall value? – Check out Lloyd’s Job Board for new roles in 2025 at Find Work.
Hiring? Contact Lloyd to hire the best candidates with compensation you can both agree on. Complete our Request Talent query to launch your search and we will have one of our Lloyd recruitment professionals reach out to you.
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Written by Nancy Schuman, CSP, the former Chief Commuications Officer for LLoyd Staffing.
A recruitment and career specialist, Nancy has more than 40 years in the staffing industry – 27 of them with LLoyd. Now semi-retired, she remains an advocate for career education; she has advised thousands of candidates on their resumes and job searches while also serving as the Careers columnist for a large weekly Long Island newspaper. Nancy has written 11 popular books for job seekers and business professionals. You can find her Author’s page and books on Amazon. She continues to blog for Lloyd and coach job seekers at all levels, offering advice for today’s competitive workplace.