Negotiating a hire from the HR side means neither giving in to every candidate demand nor imposing a rigid pay scale. It means steering an exchange in which two priorities collide: recruiting the right profile and protecting internal fairness and the budget. The recruiter who improvises ends up either overpaying a candidate who would have signed for less, or losing a gem over 2,000 pounds poorly defended. This article sets out the method I teach HR teams to hold both ends at once.
Prepare your room to manoeuvre before the first call
The salary negotiation is won before the interview, not during it. Define three figures: the floor (your credible opening offer), the target (what the role is really worth on your market) and the ceiling (the limit beyond which you walk away). That ceiling is your fallback option (BATNA): what do you do if the candidate says no? A second finalist? Reopening the search? Until you have answered that question, you are negotiating exposed, and the slightest pressure will make you fold.
Then anchor every pound to objective criteria: internal pay scale, sector medians, the positioning of the role, a budget signed off by management. A figure justified by neutral data is no longer an ego negotiation, it becomes a shared observation. "The market median for this level is 48K; your ask at 55 falls outside the range" is far sturdier than "that's too expensive for us".
Drop the anchor at the right moment
Whoever names the first figure shapes everything that follows. On the HR side, if you have a defensible lower range, anchor early to frame expectations. But if the candidate is rare and you don't know their expectations, get them to speak first: "What range are you on at the moment?" You gain decisive information without exposing yourself. And when a high figure lands, don't respond straight away: let the silence do the work. Three seconds of blank space often nudge the candidate into softening their own ask.
The story of the candidate at 58K and the budget capped at 50
An HR director I was coaching had to recruit a digital project manager. The approved budget was 50K. The finalist, excellent, was asking for 58K, with the knockout argument: "I've got another offer at 57." Panic on the HR side: either you break the pay scale, or you lose three weeks of process.
First step, don't counter-attack but name the emotion: "It sounds like you don't want to go backwards compared with that competing offer, which is completely fair." The candidate relaxes and confirms. Then the HR director asks a calibrated question: "I hear your target, but my approved budget is 50. How am I supposed to find 8,000 more than my pay scale allows?" It isn't a refusal, it's an invitation to solve the problem together.
The candidate, forced to step into her shoes, lets slip the key piece of information: what really matters is the base salary printed on the contract, not the total. The HR director then builds a give-and-take exchange: 52K base (a modest overshoot, defensible by the urgency of the role), a 3K performance bonus at six months, and two extra days of remote work, zero cost to the company, high value to him. Total perceived: north of 55K. Signed at 52 base. Budget almost held, candidate won, pay scale preserved.
Concede without cheapening yourself
Every concession must be slow, quantified and matched by a counterpart. Never move for free: each gesture calls for something in return (immediate availability, probation period, mobility). Keep a prepared concession in reserve, a perk that costs you little but is highly visible to the candidate (referral bonus, training budget, equipment), which you "release" at the right moment to break the deadlock without touching the base salary. And play the contrast: presenting the full package first (health cover, extra holiday, prospects, training) then makes the salary gap look far thinner.
Hold the line and know when to withdraw
The worst HR posture is the relieved "yes". If expectations persistently exceed your ceiling, the controlled withdrawal is your best ally: "At this level, I can't go any further without unbalancing the team already in place. I'd rather be honest with you." That step back, far from killing the exchange, reveals the candidate's real motivation, and often brings back the one who was bluffing. Finally, remind them, without overdoing it, of the reality of the process: other profiles are advancing, the decision window isn't unlimited. That controlled sense of scarcity drives a decision, provided you stay factual and never threatening.
To identify the technique suited to each recruitment situation, explore the library by situation or practise in real conditions on the simulator.
FAQ
Should you state the salary range from the interview onwards?
Yes, as soon as it's defensible. Stating early a range based on objective criteria filters out candidates who are out of budget and frames the discussion. Reserve staying quiet on the figure only for those rare profiles whose expectations you want to hear first.
What should you do when the candidate gets a counter-offer from their current employer?
Don't outbid in a panic. Use the calibrated question, "What would make you join us anyway, despite this counter-offer?", to shift the debate from salary to the project, the growth path and the environment. A counter-offer accepted purely on the number is often just a departure postponed by six months.
