Why You Are Underpaid: 5 Salary Negotiation Lies HR Tells You

In the high-stakes game of employment, there is a fundamental information asymmetry. The person sitting across the table from you the HR Manager or Recruiter negotiates salaries for a living. They do it five times a day, every day. You, on the other hand, do it maybe once every three years.

They know the real budget. You do not. They know what the person in the next cubicle makes. You do not.

This imbalance allows companies to systematically underpay talent. They rely on social scripts and "standard policies" designed to shut down negotiation before it even begins. Most candidates, fearing they might lose the offer, simply nod and accept.

But here is the secret: HR is not your enemy, but they are also not your friend. Their job is to get the best talent for the lowest reasonable cost to the company. To do this, they often employ specific phrases let’s call them "strategic untruths" to lower your expectations.

If you want to earn what you are truly worth, you need to learn to spot these bluffs. Here are the 5 most common lies told during salary negotiations and exactly how to counter them.

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Lie #1: "This is the top of our budget range."

The Scenario: You ask for $110k. They offer $100k and say, "We’d love to pay you more, but the band for this role is strictly capped at $100k. Our hands are tied."

The Reality: Budgets are almost never "strictly capped." There is the posted budget, and then there is the pain budget. If a hiring manager is desperate, if the project is bleeding money because the seat is empty, or if you are the perfect "purple squirrel" candidate, money can essentially be moved from other buckets.

Companies often have a "slush fund" or can re-level the role (e.g., changing the title from "Senior Manager" to "Lead Manager") to unlock a higher salary band.

The Counter: Do not attack the budget; attack the value. "I understand you have budget constraints. However, based on the requirements of this role and the immediate impact I can make on [Project X], I’m looking for a valuation closer to $110k. If the base salary is capped, can we look at a signing bonus or a review after 6 months to bridge that gap?"

Check out our ultimate guide to salary negotiation for more detailed scripts on how to push back without being aggressive.

Lie #2: "We don't negotiate with candidates at this level."

The Scenario: You are applying for a junior or mid-level role. The recruiter says, "For entry-level positions, we have a standard package for everyone to ensure fairness. We don't negotiate."

The Reality: This is an appeal to your sense of "fairness" to silence you. While it is true that massive corporations (like Google or Amazon) have rigid bands for new grads, almost every other company has wiggle room. If you accept the first offer, you are likely leaving $5,000 to $10,000 on the table instantly.

The Counter: "I appreciate the commitment to fairness. However, I bring a unique skill set in [Specific Skill] that goes beyond the standard requirements for this level. Is there any flexibility for candidates who exceed the baseline qualifications?"

Lie #3: "We need your salary history to make you an offer."

The Scenario: Early in the process, the recruiter asks, "So, what are you currently making?" or "What was your last salary?"

The Reality: This is the most dangerous trap in the book. They do not need your history to make an offer; they need it to lowball you. If their budget is $120k, but you admit you are currently making $80k, they will likely offer you $95k. You will think it's a huge raise (+$15k!), but you are actually being underpaid by $25k compared to the market rate.

The Counter: Pivot from history to expectation. "I'd prefer to focus on the value of this role and my skillset rather than my past compensation, as my current role has different responsibilities. For this position, I’m targeting a range of $120k - $130k."

Note: In many states (like California and New York), asking for salary history is now illegal.

Lie #4: "We can't move on the base, but the bonus potential is huge."

The Scenario: They offer a lower base salary but dazzle you with promises of performance bonuses, stock options, or "on-target earnings" (OTE).

The Reality: Cash is king. Base salary is the only thing that pays the mortgage every month.

• Bonuses are taxed heavily (often withheld at a higher rate) and are discretionary meaning if the company has a bad year, you get $0.
• Stock Options in a startup could be worth millions, or (more likely) they could be worth $0.

HR tries to sell you on "total compensation" to distract you from a weak base salary. Never trade guaranteed income for hypothetical income unless the upside is contractually guaranteed.

The Counter: "I’m excited about the upside potential, but I make my financial decisions based on guaranteed compensation. To come on board, I need the base salary to be at $X."

Use our salary negotiation scripts to practice this conversation so you don't freeze up in the moment.

Lie #5: "Take it or leave it. We have other candidates ready to sign."

The Scenario: The "Exploding Offer." They give you 24 hours to sign and imply that if you push for more, they will rescind the offer and give it to Candidate #2.

The Reality: This is a high-pressure sales tactic. If they gave you an offer, you are their top choice. They have already invested weeks interviewing you. They do not want to start over. Rescinding an offer because a candidate tried to negotiate professionally is extremely rare and a sign of a toxic culture.

The Counter: Call their bluff (politely). "I am very interested in this role, but this is a significant life decision. I need 48 hours to review the full details with my family. I want to make sure I am 100% committed when I say yes."

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The "Internal" Lie: "I should be grateful just to have a job."

Sometimes, the lies don't come from HR; they come from your own head. Imposter syndrome convinces you that asking for more is "greedy."

If you are already employed and feel underpaid, you might think you need to wait for your annual review to ask for a raise. This is false. You can request a compensation review at any time if your responsibilities have changed. Review our guide on writing a salary increase letter to start that process formally.

Conclusion: Business is Business

Negotiation is uncomfortable. It feels personal. But to the company, you are a line item on a spreadsheet. If they can get high-quality labor for a 20% discount, they will. That is just business.

Your job is to advocate for your own market value. When you realize that "No" is just the start of the negotiation, not the end, you unlock your true earning potential.

Don't go into the negotiation blind. Research the highest paying jobs in your sector and arm yourself with data.

And if you want to make sure your resume proves you are worth top dollar before you even enter the room, consult with a Skillhub Career Expert today.

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