Offer negotiation is the exchange between a candidate and the employer that has made an offer, covering pay, equity, start date, level and terms before acceptance. It is distinct from a counteroffer, which comes from the candidate's current employer once they resign. Preparation matters more than tactics: an approved range decided before the call.
Settle the range and the level before the call, not during it. Three things should be fixed in advance: the approved band for the level, the point in that band you will open at, and the walk-away number. Level belongs to the debrief, decided on evidence from the interviews, and reopening it as a negotiating lever tells everyone that titles are for sale. Know your internal comparators too, because the fastest way to create a retention problem is to bring someone in above people already doing the job well. Then work out what else can move: start date, sign-on, notice buyout, remote days, review timing. Candidates rarely negotiate on base alone. Going in without these decided is what produces the second and third round of approvals that stall an offer for a fortnight.
A sign-on bonus, the start date, and the review clock, roughly in that order. Sign-on is the most useful because it bridges a real loss, typically an unvested bonus or a notice period the candidate has to serve unpaid, and it does not disturb the internal band. Start date matters more than most employers assume; letting someone take three weeks between jobs has closed offers that money would not. An early review, written into the letter with a date rather than a vague promise, addresses the candidate who believes the band is wrong without committing you today. Beyond those: relocation support, equipment, learning budget, remote or hybrid days, and title where it reflects the actual scope. Record what was agreed in the offer workflow of your [hiring software](/hiring-software) so the letter matches the conversation.
They close some offers and they poison others, and the ones they poison are usually the candidates you wanted most. A twenty-four hour ultimatum reads as a signal about how the company behaves under pressure, and strong candidates with options treat it that way. It also produces the worst outcome short of a decline: an acceptance made under duress, followed six weeks later by a renege when a better process finishes. A reasonable window, commonly around a week for professional roles, is enough to be decisive without being coercive. If a candidate needs longer because another process is mid-flight, ask what would make the decision easier and be honest about your own constraints, such as a second finalist waiting. Pressure tactics and honest deadlines are different things, and candidates can tell them apart.
Different party, different timing, different response. Offer negotiation happens between the candidate and the hiring employer before acceptance, and it is a normal commercial conversation about terms. A counteroffer comes from the candidate's current employer after they resign, and it is a retention move by someone else. You cannot negotiate a counteroffer, only respond to it, and raising your own number in reply usually starts an auction you lose either way. The stronger play is earlier: understand during the process why the person is leaving, and if the reason is purely pay, expect a counteroffer and plan for it. Keep contact through the notice period so the relationship is not dormant when their manager makes a pitch. Track acceptance and renege patterns in your [recruitment metrics](/recruitment-metrics) so the shape is visible rather than anecdotal.
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