Employers

Why Early-Career Candidates Still Hesitate to Negotiate

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2025 JOBS REPORT INSIGHTS

Why Early-Career Candidates Still Hesitate to Negotiate

Even as pay transparency becomes more common, many early-career candidates still accept their first salary offer without negotiating. This hesitation can have long-term effects for employees as well as employers trying to close offers quickly and reduce reneges.

Many early-career candidates still accept the first salary they are offered without negotiating. Even with more pay transparency, that hesitation shapes starting salaries and what happens next. For employers, it affects how quickly offers close and whether top hires stick around.

What the Data Shows

42%
of early-career hires negotiate their first offer*
5–10%
average increase for those who negotiate*

Why It Happens

Entry-level hires often worry they will lose the offer if they ask for more. Some feel they do not have enough information to back up the request. Others simply feel awkward bringing up salary at the end of the process.

When hiring managers are unprepared to answer questions about pay, trust breaks down fast. Candidates who feel shut down or unclear are more likely to shop for other offers or accept a counter elsewhere.

What It Costs

This hesitation does not just affect the candidate’s paycheck. It affects your pipeline and retention. A new hire who feels underpaid or unheard is more likely to leave early or talk about the process with peers.

When companies rely on old pay bands or handle negotiations inconsistently, they create gaps that can grow over time. Early-career employees who do not negotiate now often see those gaps widen as they move up.

Early Offers Make the Difference

Top-paying industries are securing top talent sooner by compressing timelines. Many extend offers well before graduation. For sectors where salaries are not the highest, speed and transparency can keep you in the game.

Strong early offers:

  • Lock in top candidates before competitors reach them
  • Build trust and reduce reneges
  • Give more room for meaningful negotiation

What Employers Can Do

Negotiation is one moment you can handle well or poorly. How you manage it shapes how candidates feel about your process and whether they accept your offer with confidence.

Here are ways employers are helping early-career candidates navigate negotiation:

  1. Share benchmarks up front. Clear pay ranges help candidates know what is realistic. It also cuts down on surprises at the offer stage.
  2. Train hiring managers for the real questions. A manager who avoids talking about salary can hurt trust. Equip them with clear ranges and examples so they feel ready to handle negotiation calmly and fairly.
  3. Use fresh data. Relying on outdated pay ranges can create compression problems and slow down your offers. Use real-time salary benchmarks for your industry and region.
  4. Move quickly. Long back-and-forth salary discussions leave more time for a candidate to shop other offers. Be clear about timelines and next steps.
  5. Close the loop. Once a candidate accepts, check in to confirm they feel good about the final number and package. That quick step can help prevent early reneges.

Handling negotiation well does more than close one hire. It sets the tone for how candidates see your company, how likely they are to share positive feedback, and whether they stick around long enough to grow with you.

Note: These insights reflect early reporting as of May 1, 2025. Actual final outcomes may shift as additional data is collected and verified throughout the year.

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