Skipping the pay negotiation stage may not be the best candidate experience
Employers presenting "best and final" salary offers upfront are being cautioned that this approach could potentially alienate top candidates and new hires.
Experts at Korn Ferry issued the warning, saying presenting the "best and final" pay to avoid lengthy pay negotiations can impact the hiring experience for potential employees.
"To say this at the outset takes away from the perceived value of the individual," said Dennis Deans, global human resources business partner for Korn Ferry, in a recent insight.
"I worry about the candidate's experience if the negotiation is eliminated."
'Best and final' pay trend
The warning comes amid an emerging trend among recruiters of offering the "best and final" pay right away, according to Korn Ferry experts, citing candidates and HR professionals.
"The trend seems to have started in the tech sector, which instituted non-negotiable offers in many areas while still paying massive compensation to a handful of AI stars," the insight read.
"But the practice has now spread to other sectors, with hiring managers strongly implying—or saying outright—that there's no wiggle room on pay," their latest leadership insight read.
The trend comes amid research showing that the majority of employees do not ask for higher pay when they are hired for a job because they do not feel comfortable doing so.
It also comes amid a tight employment market, where jobseekers are struggling to find work and may be willing to settle for the first offer they receive.
"There are people who feel like they're in the Sahara desert when it comes to job opportunities," said Dave Brazel, a Korn Ferry senior client partner and leader of the firm's Digital Leadership Development sales team.
"They're happy just to get a job."
Behind the pay offer trend
Korn Ferry experts said the goal of the "best and final" pay trend is to end a negotiation before it starts.
Employers want to streamline the process, avoid drawn-out salary discussions, and maintain internal pay equity, according to Tom McMullen, leader of Korn Ferry's North America Total Rewards expertise group.
"Not negotiating reflects the company's desire to close the deal quickly," McMullen said.
In addition to risking alienation of new hires, Korn Ferry experts warn that employers must be prepared to justify their "best and final" offers—especially when those offers are at the lower end of the disclosed salary range in jurisdictions where pay transparency is required.
Employers also have to recognise that other firms are still willing to bargain to secure top talent, according to McMullen.
