It may seem a good thing to try and secure as high a salary as possible during salary negotiations. Research from Reichman University highlights the costs involved, however, and especially the financial and psychological consequences of higher demands.

The research focuses on the salary negotiation stage of the recruitment process and examines not only whether the negotiations are successful but also the consequences of those negotiations on the individuals concerned (on both sides of the table).

Salary impact

The researchers conducted a handful of experiments among participants who were divided into seven groups, each of which received a salary request from a potential job candidate. None of the requests were outlandish and all fell within the accepted range for the position.

Each of the groups was asked to present a counteroffer to the applicant, and was instructed to use websites like Israeli AllJobs and Glassdoor to find what are customary salaries for the roles.

“The findings of the study show that in order to achieve the best results in salary negotiations, candidates must come prepared and find out ahead of time what the acceptable salary range is for the position they are applying for,” the researchers explain. “After that, candidates should be the first ones to make an offer. And what should they ask for? Our research shows that you should ask for the highest salary within the acceptable range, but not more than that.”

Participants were also asked for their thoughts on each candidate before rating them on a “liking” scale. This process revealed that the higher the salary each candidate asked for, the less likable they appeared to be. This was especially so when the salary was outside of the accepted range.

The study demonstrated that doing so affects the candidate’s chances of being accepted for the position. The study examined these effects for both male and female candidates, and the results were the same in both cases.