When talent is scarce in the job market, people can negotiate by telling companies that they have other offers standing. This will help them get a better counteroffer. However, it will work much worse for the hiring manager, as their emotions will be high when getting the person hired, and they might go over budget quickly due to the invested effort (interviews).
- Related Note(s):
- The same applies to promotions. If there is a race for a promotion, people will fight for it more.
