Employers who present their highest and final salary offer right at the start of the hiring process may risk pushing away top candidates, experts warn. This trend, which began in the tech industry, is spreading to other fields, but it could have some unintended consequences.
Korn Ferry, a global organizational consulting firm, cautions that offering a "best and final" pay upfront can hurt the hiring experience. Dennis Deans, a human resources business partner at Korn Ferry, says that skipping salary negotiations can make candidates feel undervalued. “I worry about the candidate’s experience if the negotiation is eliminated,” he said.
Recruiters have started this approach to speed up hiring, avoid drawn-out salary talks, and keep pay within set ranges. But in doing so, companies might alienate new hires who expect some room for discussion. This is especially important because many job seekers don’t usually ask for higher pay, often because they feel uncomfortable with negotiation. In a tight job market, where many candidates feel desperate for work, they may accept the initial offer without question.
Dave Brazel, a senior client partner at Korn Ferry, compares how some job hunters feel to being stranded in a desert, saying, “They’re happy just to get a job.” Still, companies that lock in pay without negotiation must be ready to explain their offers, especially in places where salary transparency is required by law. Tom McMullen, who leads Korn Ferry’s Total Rewards group in North America, warns that other employers continue to bargain for talent. He points out that not negotiating might seem like a quick way to close a deal, but it could cost companies the best candidates in the long run.
As this practice spreads beyond tech, both employers and job seekers should weigh the risks. While it might speed things up, cutting out negotiations could harm the candidate’s perception of fair treatment and value. For companies competing to attract top talent, keeping some flexibility on salary could still be a key advantage.