In Scotland’s Engineering and Manufacturing sector, the war for talent is real. Finding skilled professionals is already a challenge but keeping them is an even greater one. Yet, despite this, some employers still make the mistake of low-balling candidates on salary—offering below their expectations, even when they know the individual is worth more. While this might seem like a cost-saving tactic or a test of a candidate’s commitment, it often backfires in ways that aren’t immediately obvious.
Here’s why making a low-ball offer is not only ineffective but can also damage your company’s ability to attract and retain top talent.
1. A Negative First Impression That Never Goes Away
A job offer is more than just a number—it’s a message. When you present an offer that falls short of what a candidate expects and deserves, it tells them that their skills and experience aren’t fully valued. Even if they accept the role, that initial feeling of being undervalued can linger. They may take the job out of necessity (I think this issue is particularly prevalent when recruiting someone currently out of work), but they’ll always be wondering if they could be earning more elsewhere.
For an employer, this means starting off on the wrong foot. Instead of excitement, your new hire might feel resentment. Instead of commitment, they might already be planning their exit. And instead of an engaged, motivated employee, you end up with someone who is mentally halfway out the door from day one.
2. Increased Risk of Early Turnover
One of the biggest risks of a low-ball offer is that even if a candidate accepts, they are significantly more likely to leave as soon as a better opportunity comes along. 56% of respondents in a 2024 study by Indeed agree that unfair pay makes them feel undervalued. And in Scotland’s competitive engineering and manufacturing market, better offers are usually not hard to find for skilled professionals.
Recruitment is expensive. The time, effort, and cost associated with replacing a new hire who leaves within six months often outweigh any short-term savings gained from offering a lower salary. High turnover also disrupts productivity, impacts team morale, and forces hiring managers to start the recruitment cycle all over again.
3. The Best Candidates Won’t Even Consider It
Low-balling doesn’t just risk losing candidates after they accept – it also means missing out on the best talent in the first place. Skilled engineers and manufacturing professionals know their worth, and many won’t entertain offers that don’t reflect their experience and expertise.
A poor offer can lead to your business being seen as one that doesn’t invest in its employees. Word spreads quickly, and a reputation for making subpar offers can put future hiring efforts at a disadvantage. Candidates talk, and if your company gains a reputation for underpaying, you’ll struggle to attract the top-tier talent you need to drive your business forward.
4. Lost Productivity and Engagement
When employees feel like they’re being fairly compensated, they’re more engaged, productive, and loyal to their employer. On the flip side, those who feel underpaid are less likely to go the extra mile, contribute innovative ideas, or invest themselves fully in their work. They’re also more likely to become disengaged, which leads to lower performance and morale across teams.
In a sector where skill shortages are already a concern, can your business afford to have disengaged employees who aren’t giving their best? Paying fairly is not just about securing talent—it’s about getting the most out of that talent once they’re on board.
What’s the Alternative?
Instead of making a low-ball offer, take the time to understand the market rate for the role you’re hiring for. Benchmark salaries against industry standards and be prepared to offer a competitive package. If budget constraints are a concern, consider non-financial benefits such as flexible working, career development opportunities, or additional holiday entitlement.
Ultimately, making a strong, fair offer shows respect for the candidate and their skills. It sets the tone for a positive employer-employee relationship, fosters long-term commitment, and ensures that when a candidate accepts, they’re doing so with enthusiasm rather than reluctance.
Final Thoughts
Low-ball offers might seem like a way to save money, but in reality, they cost businesses far more in the long run. From disengagement and turnover to lost productivity and reputational damage, the risks far outweigh any short-term financial gains. In Scotland’s competitive engineering and manufacturing sector, securing and retaining the best talent requires a smarter approach—one that values employees from the very first offer. Don’t look at securing someone on a lower salary than they wanted as a victory for the P&L. Hiring the right person at a fair salary is a win-win situation and that should lead to better output.