Compensation discussions have traditionally been relegated to the final stages of the hiring process. However, this approach often leads to wasted time and disappointment for both candidates and employers. Here’s why bringing up salary expectations and limits early makes more sense for everyone involved.
Time is Valuable for Everyone
When candidates and companies invest time in multiple interviews only to discover a major compensation gap at the end, nobody wins. Early salary discussions respect everyone’s time by ensuring alignment before making a significant investment.
Companies spend considerable resources scheduling interviews, pulling team members away from their work, and conducting assessments. Similarly, candidates often take time off from current jobs, prepare extensively, and may even travel for interviews.
Avoiding the Emotional Letdown
There’s a special kind of disappointment for candidates that comes from going through an entire interview process, becoming excited about a role and company, only to receive an offer that’s significantly below expectations. By discussing compensation upfront, candidates can avoid this emotional rollercoaster.
Transparency Builds Trust
Companies that are open about their compensation philosophy and ranges demonstrate transparency—a quality that extends beyond recruitment. When a company is forthright about what they can offer, it signals competency and a trustworthy organizational culture.
Focusing on the Right Things
When compensation is addressed early, subsequent interviews can focus on what truly matters: the role itself, company culture, career growth opportunities, and whether there’s a mutual fit. Without the lingering question of “but what will they offer?”, both parties can have more productive conversations.
Better Candidate Experience
Even when candidates don’t receive offers, they form impressions about your company. Those who experience a transparent process where their time is respected are more likely to think and speak positively about your organization, potentially referring other candidates/people to your company.
Practical Approaches to Early Compensation Discussions
Early compensation conversations don’t need to be awkward. Here are some effective approaches:
- Include realistic salary ranges in job postings
- Address compensation expectations in initial screening calls
- Frame the conversation around ensuring mutual alignment
- Be transparent about total compensation, not just base salary
Final Thoughts
Moving compensation discussions to the beginning of the recruiting process represents a more respectful, efficient approach to hiring. Both employers and candidates benefit from knowing early whether there’s financial alignment, allowing everyone to invest their time and emotional energy more wisely.
The most successful hiring processes occur when both parties can focus on finding the right fit without lingering questions about compensation compatibility. When you address the money question early, you create space for what really matters: discovering whether the role, company, and candidate truly align.