One of the first conversations we have with new clients is about the role they need to fill, the responsibilities, the ideal candidate, and what success looks like in the position.
From there, we offer to pull a compensation analysis using LaborIQ.
Rather than relying on national salary averages or outdated surveys, LaborIQ benchmarks compensation based on factors such as geographic market, company size, industry, revenue, the scope of the role, and current labor market conditions.
It’s one of the most valuable conversations we have before launching a search. Not because every company needs to pay at the top of the market, but because understanding how your compensation compares to today’s market helps shape the recruiting strategy, hiring timeline, and candidate expectations.
The question isn’t whether your compensation is “good” or “bad.” The question is how it compares to the market for the talent you’re trying to attract.
Rarely does a hiring manager come to us already knowing they’re below market. More often, they simply haven’t seen current data. Once we review the compensation analysis together, the conversation shifts:
“We have an incredible culture.”
“People who join us tend to stay for years.”
“There’s a lot of opportunity for growth.”
“Our leadership team is fantastic.”
“This role offers the chance to make a real impact.”
Often, every one of those things is true. There are also legitimate reasons the compensation itself sits where it is. Sometimes clients have built pay around long tenured employees and want to maintain internal equity. Others are growing quickly and need to be thoughtful about how new salaries fit within their overall compensation philosophy.
Which leads to an important question, can you still attract exceptional talent if your compensation isn’t at the top of the market?
Absolutely. The key is understanding how compensation influences the hiring process and setting realistic expectations before the search begins.
Not All “Below Market” Compensation Is the Same
One of the biggest misconceptions we see is that compensation is either competitive or not competitive. In reality, it’s much more nuanced.
A role that’s 5% below the market median creates a very different recruiting challenge than one that’s 25% below market. A small gap may have little impact on the search. A larger gap may require a longer timeline, a more targeted recruiting strategy, or greater flexibility in the candidate profile.
That’s why benchmarking compensation before a search is so valuable. It helps us understand where you stand in the market and build a recruiting strategy based on data, not assumptions. Compensation doesn’t determine whether you’ll make a hire. It influences how difficult the search will be and how many people are likely to consider the opportunity.
5 Things to Expect When Your Compensation Isn’t at the Top of the Market
- Your Story Matters More Than Ever
When compensation isn’t your strongest selling point, everything else about your opportunity becomes even more important. Candidates evaluate the leadership they’ll work for, growth opportunities, company stability, flexibility, culture, purpose, and the chance to make an impact.
If your company offers these advantages, don’t assume candidates will discover them on their own. They need to be communicated throughout the recruiting process. A compelling opportunity deserves a compelling story.
- Expect a Smaller Candidate Pool
A compensation package that isn’t leading the market doesn’t mean you can’t attract outstanding talent. It does mean your pool of candidates may be smaller. Some highly qualified candidates simply can’t make the financial move, regardless of how attractive the opportunity may be. Others absolutely will.
We recently partnered with a client whose compensation was approximately 15% below the market median. Their first reaction was, “We can’t increase the salary.” Fortunately, they didn’t have to. They had an exceptional culture, accessible leadership, low turnover, and a genuine opportunity for someone to grow their career. By setting realistic expectations, refining the messaging around the opportunity, and targeting candidates whose priorities aligned with those strengths, we successfully filled the role. The salary wasn’t the deciding factor. The overall opportunity was.
- Expect the Search to Take Longer
A smaller candidate pool naturally requires more time. It takes longer to identify the right people, engage passive candidates, and guide them through the hiring process. That doesn’t mean the search isn’t working. It means the recruiting strategy needs to reflect today’s market realities rather than unrealistic expectations. Understanding that upfront helps everyone stay aligned throughout the search.
- Expect the Hiring Process to Matter Even More
If you’re asking candidates to consider an opportunity that isn’t leading the market in compensation, every interaction matters. Long delays, inconsistent communication, unnecessary interview rounds, or slow decision making can cause excellent candidates to lose interest. Companies that communicate well, move efficiently, and create a positive candidate experience build confidence. Candidates aren’t just evaluating the role. They’re evaluating how your organization operates.
- Expect Success When Expectations and Strategy Are Aligned
Every year, we successfully complete searches for companies whose compensation isn’t at the top of the market, because they understand where they stand in the market. They know what makes their opportunity compelling. They communicate that value clearly. And together, we build a recruiting strategy that reflects today’s hiring landscape.
Final Thoughts
Compensation matters, and it always will, but it’s only one piece of the hiring equation. The companies that consistently attract great talent aren’t always the ones offering the highest salaries. They’re the ones that understand where they stand in the market, communicate a compelling opportunity, and align their hiring strategy with today’s talent landscape.
Before launching your next search, ask yourself:
- Do we know how our compensation compares to today’s market?
- If we’re not leading the market in compensation, what makes our opportunity compelling?
- Are our hiring expectations aligned with today’s talent market?
When those questions are answered upfront, companies don’t just hire more effectively. They hire more strategically.
Get to know Risch Results and learn how we can support your next search by visiting rischresults.com or contacting us at info@rischresults.com.