Getting a job offer can be thrilling. But that joy often turns into anxiety as candidates grapple with whether to accept the offer or negotiate for better terms. Many believe that negotiating could cost them the job.

Research from George Mason University challenges this belief. The study suggests that the fear of having a job offer withdrawn is largely unfounded.

The cost of negotiation

The researchers conducted seven studies with over 3,000 participants, including job candidates, hiring managers, and experienced professionals. They found that while job candidates feared that negotiating would result in the offer being rescinded, managers were more flexible. On average, managers had extended 26.9 job offers in their careers and only 1.73 of these were withdrawn after negotiations.

In further studies involving both in-person and online negotiations, participants were randomly assigned to act as either “job candidates” or “hiring managers,” with real money at stake. This role-playing altered their perceptions of negotiation risks.

The research identified two psychological factors that explain candidates’ exaggerated risk estimates: zero-sum perceptions (the belief that negotiations are a battle over limited resources) and power perceptions (how much influence candidates feel they have). Nearly half of the candidates chose to accept the initial offer without negotiating due to fear of losing the deal.

Underestimating our power

Candidates generally viewed negotiations as zero-sum and underestimated their negotiating power compared to “managers.” This helps explain why many avoid negotiating, often to their disadvantage.

“Negotiations aren’t just zero-sum,” the authors note. “For instance, you might value teleworking more than a small signing bonus, and the hiring manager might appreciate the cost savings. Such negotiations can result in win-win outcomes.”

Candidates who saw negotiation as a win-win opportunity or felt they had higher negotiating power were less likely to fear losing the offer and more likely to negotiate. However, even with these positive perceptions, candidates still overestimated their risk of losing the offer.

“Think about negotiating a babysitter’s rate,” the authors explain. “Getting a great deal is pointless if the babysitter feels bullied and is unhappy to care for your kids.”

Negotiating a job offer is challenging and carries some risk, but the research indicates that candidates often overestimate this risk. With a positive approach, candidates can frequently achieve better outcomes through negotiation while maintaining a good relationship with the employer.