Many work seekers are very nervous about negotiating with an employer who’s just made a job offer. They worry that the offer will be withdrawn, and an opportunity will be lost. Hart, Bear, and Ren asked job candidates and hiring managers to estimate the probability of negotiating resulting in an offer being retracted.
Seven studies involving over 3,000 participants in different scenarios found that job candidates estimate the chances that negotiating will result in an offer being rescinded to be 33% higher than managers’ estimates. They also found that candidates are reluctant to negotiate at all, with about half choosing to accept offers without negotiating.
The researchers also surveyed about 1,500 managers and asked directly about how many offers were retracted due to negotiations. Most had never withdrawn an offer. Overall, 94% upheld their offers.
One reason candidates over-estimate the likelihood of losing the offer is the view that every gain for them is a loss for the manager. Candidates still over-estimate, but less so, when they see that a win for them may also be a win for the manager. For example, negotiating later start and end times at work may solve a customer service problem for customers that contact the organization after typical business hours.
Another reason candidates are reluctant to negotiate is the perception that they have very little power compared to the manager. The researchers found that candidates estimated their power in the negotiation as 20% lower than managers did.
For career development practitioners, this research provides two key pieces of information they can give to work searchers. First, managers are highly unlikely to withdraw a job offer because a candidate negotiates. Also, job seekers are less likely to be nervous about negotiating if they go into the process exploring win-win rather than win-lose possibilities. Practitioners should likely qualify that they are providing information rather than advice. Work seekers will need to make their own decisions about the probabilities they face.
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