The Rise of ‘Best and Final’ Pay Offers

Sad tales of white-collar workers struggling to find a job in this market have become a staple of the business pages and social media. So when an offer does finally come, many candidates are thrilled—though naturally they’re anticipating a little negotiation over their pay.

But that’s not quite the way things are turning out. According to both candidates and HR pros, more and more companies are presenting jobs with “best and final” pay offers right away. The trend seems to have started in the tech sector, which instituted non-negotiable offers in many areas while still paying massive compensation to a handful of AI stars. But the practice has now spread to other sectors, with hiring managers strongly implying—or saying outright—that there’s no wiggle room on pay. The goal, experts say, is to end a negotiation before it starts, at a time when the job market leaves candidates with few options. “There are people who feel like they’re in the Sahara desert when it comes to job opportunities,” says Dave Brazel, a Korn Ferry senior client partner and leader of the firm’s Digital Leadership Development sales team. “They’re happy just to get a job.”

Surveys vary, but their general consensus is that about half of people try to negotiate over pay when job offers come. The strategy usually pays off: Research shows that candidates who negotiate their compensation usually walk away with substantially higher salaries, better benefits, or both. If people don’t negotiate, experts say, it’s because they’re afraid that bargaining will make a prospective employer pull a job offer.

According to Tom McMullen, leader of Korn Ferry’s North America Total Rewards expertise group, employers often want to streamline the process, avoid drawn-out salary discussions, and maintain internal pay equity. “Not negotiating reflects the company’s desire to close the deal quickly,” he says.

But the “best and final” trend worries some HR pros, who say that while firms may save money, they may also alienate the new hire—leaving them less motivated from day one. “To say this at the outset takes away from the perceived value of the individual,” says Dennis Deans, global human resources business partner for Korn Ferry. “I worry about the candidate's experience if the negotiation is eliminated.” This is particularly true for a highly skilled candidate who may have other options. “If I hear ‘My way or the highway,’ I might be looking at something else,” says Kim Waller, a Korn Ferry senior client partner in the firm’s Organizational Strategy practice.

Experts point out that laws around the world mandate the disclosure of salary ranges, and that candidates can ask for this information while they’re considering a best and final offer. An employer whose best and final offer falls at the low end of the stated range would need to be ready to explain why, for example.

What’s more, McMullen says, “final” is rarely absolute. Even in markets like the current one, in which employers have a perceived advantage, firms are willing to bargain to compete for top talent. “A best and final offer should be treated by a top candidate as a strong signal rather than a hard stop,” he says.

Learn more about Korn Ferry’s Total Rewards consulting capabilities.

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