Why Lowballing Candidates at Offer Stage Damages Everyone

Why Lowballing Candidates at Offer Stage Damages Everyone

As recruiters, we work tirelessly to match companies with their ideal candidates. After weeks or even months of careful vetting, interviews, and negotiations, we reach the final stage – the job offer. It’s a moment of excitement for both the employer and the candidate. The terms have been discussed, expectations have been clear from the start, and everyone is ready to move forward.

Then, it happens.

The employer presents an offer that falls below the agreed-upon salary expectations—often significantly lower, even when it’s clear they have the budget to meet the original terms.

This is more than just a disappointment. It’s a betrayal of trust, one that has serious consequences for all involved.

The Impact on the Candidate

For the candidate, the process has been emotionally and mentally draining. They've invested time, energy, and hope into this opportunity. They’ve likely turned down other prospects, and now they are faced with a lowball offer that devalues their skills and time. This can erode their confidence and leave them questioning their decision to invest in the company in the first place.

Being undervalued at the offer stage sets the tone for future interactions. Candidates wonder: "If this is how they handle negotiations now, what can I expect down the line in terms of growth, compensation, and respect?"

In many cases, the candidate walks away, and the employer loses out on talent they identified as the best fit.

The Impact on the Employer’s Reputation

An employer’s brand is everything. When candidates feel misled or undervalued, word spreads. In today’s hyper-connected world, transparency reigns, and people talk. Reviews on Glassdoor, LinkedIn, and industry forums will reflect the candidate's experience.

Potential employees, especially top talent, are more selective than ever. They’ll avoid companies that have a reputation for offering below expectations or using aggressive tactics when it comes to compensation. This can lead to a talent drought where skilled candidates prefer competitors who are perceived as more transparent and fair.

The Impact on Recruiter Relationships

As recruiters, we are the bridge between the employer and the candidate. We put in the groundwork, building trust and guiding candidates through the process. When an employer breaks that trust by offering less than expected, it’s not just the candidate who feels the sting – it’s us as well.

Our credibility is on the line. When we tell a candidate that an offer is coming within agreed-upon terms, only to see those terms disregarded, it weakens our relationship with both the candidate and the client. Months of hard work, relationship-building, and negotiation can evaporate in an instant.

In the long run, employers who engage in these tactics risk losing not just great candidates but also recruiters who no longer see value in partnering with them. Recruitment is a collaborative process, and when one side isn’t transparent or fair, the whole system falters.

What Can Employers Do?

Be Transparent: Salary expectations should be clearly communicated early and adhered to during the offer stage.

Respect the Candidate: Candidates invest time and energy into the process; respect that by offering what was discussed and agreed upon.

Maintain Long-Term Thinking: Your reputation with candidates and recruiters matters. Make decisions that reflect a commitment to long-term success and partnerships.

The recruitment process should be a win-win for both employer and candidate. Lowballing at the offer stage turns a potentially positive outcome into a negative one, harming relationships and reputations along the way. Employers, be mindful of the damage it causes – both now and in the future.