Salary Negotiation Dilemma: What Happens if You Quote Lower Than the Company's Offer?

Hi, I have a query for all the HR professionals. I wish to know, in case a candidate, during the selection process, quotes a salary below what the company has to offer for a particular position, what is the salary that is finally offered to him? Is it what he has quoted or what the company had initially decided to offer?

For example, if I quote a salary of 4.5 lakhs, and that is below what the company had to offer (6 lakhs), how much will I get?

Hi! If I were the one hiring you, I would give you the rate you are asking for, even if it is below the company's standard hiring rate for the position and Job Grade you applied for. This may create a temporary distortion in the salary structure, but it can be corrected immediately upon regularization by adjusting your rate to the actual hiring rate of the Job Grade where your position belongs. It would be silly to pay someone more than what they are asking. I am sure you'll get a reprimand, if not fired, by your boss if you do that.

Best wishes,

Regards, Ed Llarena, Jr. Managing Partner Emilla Consulting

Hi, Just to share my opinion.

I would follow the guidelines on the salary structure of your organization and pay him accordingly, even if the applicant has asked for a lower salary. The reason being:

1. Giving confidence to the new applicants that the company practices a fair and equal policy towards ER.

2. Avoiding any grievance on discrimination.

3. Avoiding any grievance on inequality, especially when you have colleagues who are performing similar or lower functions with higher pay than that person.

4. Building future trust between the employee and employer.

Basically, to ensure that everyone starts off on the right footing.

In some ways, I can agree with Ed. However, we cannot predict how the individual will react when they find out the truth about their pay. If they bring the matter up, then there is a resolution... but if they grumble and complain and badmouth at the back, the backlash can be great towards morale, confidence, and trust towards the organization, which, to me, is so hard to find these days.

As the saying goes, "There are two things you don't monkey around with a man... the first is his wife, and the second is his paycheck."

Hope this gives you another view. Have a good week.

Regards

I would agree with Noel. Of particular importance here is that this becomes the starting point in your relationship with this employee. If he/she comes to believe that they were taken advantage of, it will color their relationship with your organization forever. The organization would be taking an action that would ensure that the employee will never again trust it.

Regards, Carol

Hi, Normally, all companies end up paying what the candidate actually asked for. It is just that the candidate undersold themselves. However, there are a few companies, 1 in 100, who pay what they had earlier decided upon because they are too concerned about their image in the market.

Regards, Soumya

Dear Colleagues,

I align with Ed on the issue of negotiated packages for employees. It should be noted that when a new employee joins, there is a benchmark for each entry point upon resumption, which often exceeds what the applicant initially settled for. However, all hope is not lost for the employee who may have undersold themselves. The professional HR team should, at the point of confirmation or post-probationary period, regularize such situations to meet the actual benchmark of the concerned employee and, if possible, pay any arrears where applicable.

It is important to highlight that in some companies, this regularization may not occur, which I find very unfair. This lack of action can significantly impact employee turnover when compared by new hires.

Thanks

Dear All,

I totally agree with Sunil. This (giving what the candidate asks) has both merits and demerits.

Merits:
1. The company is cutting costs.
2. The company can increase the pay (immediately) citing his/her performance, whereby the employee performs well.
3. Useful for growing companies and small organizations.

Demerits:
1. Employee morale and motivation will be shattered if he knows the truth.
2. Employees may spread negative word-of-mouth about the organization to 100 people.
3. Employee attitude towards the organization will become negative.
4. If he/she gets a raise after fighting for it, then it may become a regular practice for all employees to fight to get things done.
5. Disastrous for reputed concerns.

Regards,
Narasimman
HR
TOI

Dear all,

I, for one, have recently offered someone a salary package as per company standards, although he had quoted a lower package. This was done simply to keep salary structures at par, minimize employee dissatisfaction, and increase his motivation and trust in the organization. I would like to highlight here the wonders it has worked for us. I believe this practice instills confidence and employee trust in the organization, which leads to a better-motivated employee, better performance, results, etc.

Regards,
POOJA

Hi all,

Compensation is also one of the factors that affect the motivation of an employee. In the scenario where a person is offered less than the company standard, it will definitely affect their attitude towards work in the long run. There is also the possibility that the person reporting to them might earn the same salary. Can you imagine if someone reporting to you is getting the same salary?

I believe that in such a situation, the employee will not stay in that organization for a long time. Even if they wait for a year, they will wait for the increment and then shift to another job. I believe compensation issues affect a person's attitude, relations with others, morale, job satisfaction, etc. Such a person will not contribute to the company's growth.

So, according to me, compensation must be paid according to salary structures.

Regards,
Ashit

Hi All,

I am new to this site. I would like to express my views. Recently, even I witnessed a similar situation. The person asked for a lower salary package, whereas the employer had decided on a higher band before the interview.

The HR handled it like this: The candidate asked for 4L, while the employer's band was 6L. So, they offered 5L. The reason behind this decision was to motivate the employee, as money is one of the motivating factors, and to cut costs to the extent possible.

Shipra

Hi!! Welcome to the site!

The situation which you experienced is what I believe is a win-win situation. The new employee will be happy as he is getting more than he thinks he is worth at the same time the company also saves some money for some time. However, I think that once the probation period is over, remuneration should be at par with the pay scale for that grade. This will keep the new employee motivated, and he will also realize his true worth.

Hi there,

I entirely agree with Mr. Ed Llarena Jr.'s viewpoint regarding your query. Also, remember that if you have encountered a situation where a candidate comes for an interview after responding to an advertisement in the newspaper but has not read it properly, then it is evident that they may have missed the requirement stating that candidates drawing less than X figure need not apply.

Hope you have found the answer.

Best Regards,
Sadashiv Rao 8)

Dear Rakesh,

This situation generally appears when a well-established and well-structured company calls a candidate for an interview, and their CV has not been properly shortlisted. Anyhow, when they check all parameters of their requirements and the candidate fulfills the same, the salary part is to be decided.

Keeping my reputation in the industry and standards set forth by my company, I will definitely pay the sum that is payable by me to other staff members of my company, irrespective of whether the candidate has asked for less.

Every well-established company with total transparency in their system will go for this. What is more required is that the candidate should fit within my job specifications, and if my standards are higher than anyone's expectations, I would love to honor my commitment first.

This not only solves my future comparative problems but also helps me in maintaining the morale among the same cadre person. The newly joined will also feel a part of the team members, and others will accept him as a part of their team without any hesitations.

Hope this is clear.

Regards,

Anil Anand