Company A has a job opening that I have applied for, interviewed for, and received an offer for. Their culture is awesome (very family-oriented) and I already like a lot of the people I have met. Long story short, it knocked everything off my checklist for what I wanted in a place of work. Initially it seemed like a good opportunity until this happened:
Their offer was almost 30% below market for the bottom of the typical salary range
Something else to note is that this low pay is not made up in any way through other benefits such as lots of vacation etc...
This is compared to nearly identical jobs at companies in the same industry within ~15-30 miles (I did my homework). I started the negotiation process by informing them of the current industry standard salary and told them that their offer is well below market value. Instead of making a direct counter-offer, I asked them if they could make a better offer (I had heard that this is a good negotiation tactic for very low offers). Although the company culture seems to be a good improvement, I cannot afford the pay cut (this offer is even lower than my current salary).
Their Response: We are well aware of the standard salary range, however we feel that we are offering reasonable compensation for the job. They also said that several other interviewees had expressed the same concerns about pay, but they are not willing to budge any further.
I had already talked to a few friends who had heard that this place was struggling to hold onto people and that their pay was low, but I did not expect this. They are also a pretty big company, so I am unsure of why they allow policies like this to exist (over 4000 employees in 6 or 7 countries) or if they treat all employees like this. If this is the case, I am unsure why anyone works here.
I cannot accept an offer with this low of a salary, and now I may not accept even even if they increased the offer due to their treatment of the situation. However, I would still consider it if they were willing to significantly improve their offer to something actually competitive.
Is this a common sort of hardball negotiating tactic? What would be a good response as a last ditch effort for them to increase the offer so that I can consider the job?
There seems to be a huge disconnect between their expectations and reality, and if they do not improve the offer I will unfortunately have to move on.
Note: I am currently employed and am not desperate, I just am ready to move on to new opportunities. Also, I have a few other leads but nothing promising yet.
Note: I am still a student. I am actually asking this question for a friend and thought that asking it in first person would be more beneficial for creating good responses and discussion. I am well acquainted with his situation, and thought I would ask on here to see if anyone else had any further thoughts.