Negotiating Salary: A Guide for Hiring Managers

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You’ve found the perfect candidate for your team. You can already picture them settling in, ready to make an impact. But before they can get started, there’s an important step you may not have taken yet: agreeing on pay.

This is easier said than done. Today’s hiring market features continuing skills shortages and a high number of open positions. Forty-four percent of managers surveyed for the 2025 Salary Guide From Robert Half report that candidates are more likely to raise the subject of pay in this environment. As an employer, you need to be ready for these conversations. Let’s walk through how to tackle these pay talks confidently and come away with a win-win deal.

How to Navigate Salary Negotiations as a Manager

Before negotiating salary with job candidates
During negotiations with your top choice
You’ve successfully made it through the negotiation — now seal the deal

Set your salary range. Before you start recruiting, establish a competitive pay range for the position. Consider the role’s market value, factoring in experience, location and current demand. The Salary Guide offers salary ranges for a variety of professional fields. You can even customize data for your city to ensure your offer aligns with local market rates.

Understand the compensation landscape. Nearly half of managers (48%) anticipate challenges in meeting candidates' pay expectations. This shows it’s vital to think beyond base salary. Review the latest trends in benefits, incentives and perks. By crafting a well-rounded package, you'll attract a broader talent pool, including remote workers, candidates seeking flexible arrangements and those who prioritize work-life balance over a bigger paycheck.

Assess the candidate’s value. To help decide whether to agree to the candidate’s salary request, make a counteroffer or stand firm, ask yourself whether the skills of the person at the top of your list more closely align with your most pressing needs than those of others you’ve interviewed. If a candidate asks for a higher figure than you’ve offered, how difficult and time-consuming would it be to begin your search again?

Think beyond the paycheck. Your research into compensation trends will pay off here. If a candidate's salary request is out of reach, get creative. If you don’t already, consider offering flexible work options, extra vacation time or professional development opportunities. You might even sweeten the deal with a signing bonus. These extras can be powerful incentives, often tipping the scales in your favor when the base salary isn't quite what the candidate had hoped for.

Know your limits. Consider the existing pay levels for similar positions in your company. If you agree to a higher salary to win a stellar candidate, you risk lowering morale or even losing current staff if they find out a new hire is making more money than they are.

Know when to walk away. If a candidate becomes hard to reach, they might be weighing other options. While it's tempting to press for an answer, respect their process. If you sense they're not genuinely interested, let them know you appreciate their time and move on.

Get it in writing. Once you and the job candidate agree on a salary, benefits and a start date, have the candidate sign an offer letter to confirm that they agree to the terms. If the offer depends on reference or background checks, state this clearly.

Keep the excitement alive. The period between offer acceptance and the start date is critical, especially if the candidate is currently employed. Once they announce there are leaving, their company might counter with a tempting offer. Stay connected and engaged to keep their enthusiasm high and their commitment firm. Regular communication can make all the difference.

Salary negotiations can be tricky, but with preparation and flexibility, you can come to agreement with the candidate. The quality of your offer will then keep your ideal candidate excited to join your team.

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