Client Resources

Low-Balling a Job Offer Will Cost You More Than Their Salary!

Obviously, companies don’t want to overpay for anything, but the effort to keep labor costs down shouldn’t result in a company consistently making low-ball offers to applicants.

Low-ball offers actually cost businesses far greater than what they save, and it’s crucial for hiring managers to realize the significance of paying people what they are worth. If you are in the position to make job offers, think about the following costs associated with making low-ball offers to applicants.

Losing out on top talent

If the applicant you’re thinking of hiring is good, they won’t have an issue finding other job opportunities. Strong talent is difficult to come across, and those with significant talent normally have other career options available to them. You don’t ever want to risk offending an excellent applicant and having them reject a low-ball offer, possibly resenting you for wasting their time.

Most businesses mistakenly justify a low-ball offer by thinking an applicant can make a counteroffer. In fact, applicants often feel unappreciated. Even if they do counter, it’s a bad approach to starting off a new relationship.

Higher turnover

Pretty much everybody knows what the average salary is for their position, and because of this, you should always pay your staff members at least the average wage for their job.

When you hire someone using a low-ball offer, you might think you saved the company some money. However, when this new worker leaves for a more equitable offer, you’ll have to screen candidates, interview, hire, and train someone else. Ultimately, this means more spending, which is what you were hoping to avoid in the first place.

The length of a company’s relationship with a worker depends on that worker feeling valued. The typical employee will stay for longer, and work harder, if they are paid what they are worth.

Lower morale

If an applicant does accept a low-ball offer, you might feel like you got a victory; however, your new employee will likely start their tenure feeling defeated.

Is this how you want your new team member feeling, as if they just lost? Do you think this person will be enthusiastic about working for your company? Ultimately, this outcome, a disgruntled, disengaged worker, is a loss for both parties.

A bad reputation

In the current age of social media, word travels fast. Do you want your company brand to be that of a cheap employer, one that doesn’t pay people what they are worth? Rather, you should want a reputation in your industry for being a supportive, even generous organization. When this is your employer brand, you’re more likely to attract talented job seekers, making your hardest decision which top applicant to hire. Employer brand has a big influence on the ability to source talent, and your hiring department must conduct itself accordingly.

Find Supply Chain Talent Today

At ZDA, we take a lot of the guesswork out of the hiring process so our clients can put more energy into their core business activities. Contact our supply chain recruiters today to find out how we can support the success of your company.


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