Every recruiter has a horror story about a negotiation that fell apart at the last minute. The candidate seemed perfect, the offer was generous, and then something shifted and suddenly they ghosted or demanded terms that blew the budget. It happens more often than it should, usually because recruiters approach negotiation like a zero-sum game when it's actually a collaborative process that, done right, leaves both parties feeling good.
The candidates who negotiate well aren't trying to squeeze every last dollar out of you—they're signaling that they understand their value and aren't desperate. Counterintuitively, candidates who negotiate are often better hires: they've demonstrated confidence, self-advocacy, and the willingness to push back when something isn't right. If you lose a candidate because they asked for $5,000 more, that candidate would have probably pushed back on other things too.
Know Your Number Before You Start
This sounds obvious, but many recruiters enter negotiations without a clear sense of their flexibility. Before you make an offer, determine your ideal number, your acceptable range, and your walk-away point. Without this preparation, you either overpay or lose candidates unnecessarily.
For each candidate, I try to understand what they currently make, what their expectations are based on market research, and what their personal situation might be driving those expectations. A candidate relocating from a high-cost city has different needs than someone staying local. A candidate with a family has different priorities than a recent graduate. Understanding the person behind the number helps you construct offers that actually close.
Beyond Base Salary
When base salary can't move much, the total compensation package often can. Signing bonuses, equity, additional PTO, remote work flexibility, professional development budgets, and title adjustments can all bridge gaps that pure cash can't. Smart candidates know this and will often trade base salary for equity if they believe in the company's growth.
Use our Benefits Calculator to show candidates the full value of their compensation package, including benefits that might not be immediately obvious. Sometimes seeing the complete picture—including health insurance, 401k match, and PTO value—changes the conversation from "that's not enough" to "I didn't realize the total package was that valuable."
How to Handle Counteroffers
When a candidate has a counteroffer from another company, the instinct is to panic or get defensive. Don't do either. Counteroffers are common and rarely mean what candidates think they mean. When someone accepts a counteroffer from their current employer, they typically leave within six months anyway—the underlying reasons for their dissatisfaction don't disappear because they got a raise.
The right response is to stay calm, acknowledge the situation, and refocus the conversation on why your opportunity is the right long-term fit. Don't try to outspend a counteroffer unless you absolutely have to—you'll start the relationship in a bad place. Instead, remind the candidate what attracted them to your role in the first place and what their career trajectory looks like with you versus staying where they are.