The CEO called to tell us he was ready to extend a job offer to a COO candidate. "Offer her $185,000, but we have some room to go up from there if she doesn't go for it." His assumption was that the candidate would be comfortable negotiating and would ask for more if she wanted more.
The candidate was perfectly comfortable negotiating, but she was also comparing this offer to another offer she received that week to see who placed a higher value on her skills. She was using the offer as a signal of which firm would treat her better. By not leading with his best offer first, the CEO sent the message that his new COO would always have to negotiate for fair pay, instead of simply being paid the fair market rate.
The smart assumption to make when interviewing candidates is that the best people will receive multiple job offers at the fair market rate for their skills.
When you make this smart assumption you won't lose great candidates by:
When you make this smart assumption you will:
For more perspective on how to set salaries and how to make job offers, see How to Make a Job Offer and Negotiate Salary for a New Hire,
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