And Why Paying People What They’re Worth Is Always the Better Move
We see it all the time: companies looking to hire the best possible candidate… for the lowest possible price.
Maybe you’ve been there. You’ve got a dream list of skills, experience, and attitude—but when it comes time to talk numbers, there’s hesitation. “Can we get someone just as good, but for less?”
It’s not a ridiculous question—it’s a business-minded one. But here’s the truth: when you lead with cost-cutting instead of value-building, you’re setting yourself up to lose.
Here’s why the “lowball and hope for the best” approach backfires more often than it works—and what to do instead.
1. Top Candidates Know What They’re Worth
The job market isn’t what it was five years ago. Great candidates aren’t waiting around. They’re evaluating you as much as you’re evaluating them. And thanks to platforms like Glassdoor, Fishbowl, and Reddit, they have a pretty good sense of what’s fair compensation in their field and city—or remote role.
For example, we recently worked with a senior lifecycle marketing candidate interviewing at multiple brands. She had 8 years of experience, an impressive track record of growing DTC revenue, and was crystal clear on her value. One company offered her $105K when the market rate was closer to $130K–$140K for her role and experience. She politely declined—twice—and accepted a competing offer a week later at $145K. The lowballing brand? Still hiring six weeks later.
Key takeaway: The best candidates aren’t afraid to walk away. Especially when it’s clear a company is trying to get them “on the cheap.”
2. The Hidden Costs of a Lowball Hire Add Up—Fast
Let’s say someone does accept your low offer. You might think you’ve won. But here’s what often happens next:
- They keep interviewing and leave within 3–6 months.
- They stay, but feel undervalued and disengaged.
- They tell their peers (often high-quality talent you might’ve hired one day) not to apply to your company.
The result? You’re back at square one. Except now, you’ve lost time, money, and maybe even damaged your internal morale.
According to the Society for Human Resource Management, the average cost-per-hire is $4,700. But that number skyrockets when you factor in opportunity cost, lost productivity, and the time it takes to backfill and retrain a role.
Hiring right the first time is almost always cheaper than hiring twice.
3. You Get What You Pay For (And Then Some)
Let’s flip the script. Imagine you meet a standout Head of Creative with the portfolio, leadership skills, and industry knowledge you’ve been dreaming of. They’re asking for $20K more than you budgeted.
You have two choices:
- Try to negotiate down, risk offending them, and potentially lose them altogether.
- Stretch slightly beyond your initial budget—but lock in someone who’ll build a world-class creative team and deliver work that actually grows the brand.
That’s not a splurge. That’s a strategic investment.
Would you want your future CFO or investor to see that you lost top-tier talent over a $15K delta—less than the cost of one solid marketing campaign? Probably not.
4. Underpaying Is a Brand Problem, Too
If your company becomes known for low salaries or stingy offers, word spreads. We’ve seen this firsthand: candidates talk. And in tight-knit industries—like beauty, wellness, DTC, or media—your employer reputation matters.
People screenshot offers. They forward them to friends. They post about them in Slack communities. It’s not about “burning bridges”—it’s about transparency. And if you’re not keeping up with fair pay, people notice.
You can have a beautifully branded site and a killer mission statement—but if your offers don’t reflect respect for people’s time and expertise, you’ll struggle to attract the talent you need to grow.
5. The Real Value Is in Alignment, Not Bargaining
This isn’t about “throwing money at the problem.” It’s about understanding what your ideal candidate truly wants—and making sure your offer reflects that.
Yes, salary matters. But so do things like:
- Growth opportunities
- Health and wellness benefits
- Autonomy and flexibility
- Company culture and leadership style
When you combine competitive compensation with a great employee experience, you’re no longer bargaining—you’re aligning. That’s where real long-term hiring success happens.
So, What Should You Do Instead?
- Do your homework. Make sure your offers are aligned with current market rates—not what you paid someone three years ago.
- Build in budget flexibility. If you meet someone exceptional, be ready to flex a bit to bring them in.
- Lead with value. Communicate what makes your company a great place to work. Pair that with an offer that feels generous, not stingy.
- Work with a recruitment partner who knows what candidates are looking for. (That’s us. 👋)
Final Word: Pay People What They’re Worth
Hiring is one of the most important decisions you make. Trying to save money by underpaying the people building your business? That’s a short-term fix with long-term consequences.
Want help crafting offers that land top talent—and actually stick?
Let’s talk. We’ve got market data, candidate insight, and plenty of lessons from the field.
