Employers: How do you respond when a candidate asks for more than you’re willing to pay?

There are a few ways to approach this as an employer or hiring manager.

One option: move on. The candidate priced themselves out of the role, and you find someone else whose expectations are more in line with your offer.

Another approach: be transparent. Let the candidate know what you are willing to pay (base salary, incentives, and benefits) and give them a chance to respond. They may have asked for more simply because they didn’t know your range, not because they’re unwilling to flex.

And then, there’s storytelling.

Here’s one: my neighbor put his house up for sale and priced it too high. How did he know? He had ten showings and zero offers. But he was reluctant to reduce the price. Six months later, the house is still for sale and only now is he considering a price cut.

This is what I sometimes see from candidates. They’re not getting interviews or not getting offers, and they think it’s a company problem. Sometimes it is. But sometimes, the pay they expect is just too high for the market.

Compensation varies by industry, location, company size, and by the employer’s compensation philosophy. A large tech company with equity incentives and a generous bonus pool may pay very differently than a nonprofit or startup.

So, here’s my advice to job seekers: Don’t overprice yourself out of opportunities. Use the many free compensation resources out there (click to view the list of resources) to benchmark your pay expectations.

And to employers: Transparency is powerful. A respectful conversation about the pay range can keep the door open for great candidates who just needed more information to align. And post a realistic base salary range and description of incentives as well as benefits on all your job openings.

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