You're interviewing a candidate with high salary expectations. How do you navigate the budget constraints?

Navigating high salary expectations within budget constraints is a freq. challenge. I start by understanding the candidate’s rationale for their expectations, whether it's based on market trends, current package, or personal factors. I integrate this discussion into the interview & follow-up with a post-interview call to share fdbk & understand their perspective further. Highlighting our orgs benefits, like work-life balance, career growth, & other perks, often helps balance expectations. If necessary, I connect with company leaders or arrange a more informal meeting, like a lunch interview, to explore middle ground & reach a mutually agreeable compensation. The goal is to ensure the candidate feels valued while staying within budget.

Understand Expectations: Ask for a detailed breakdown of their salary expectations and the factors driving them. Highlight Benefits: Emphasize non-monetary benefits, such as career growth opportunities, work-life balance, and other perks. Be Transparent: Clearly communicate the budget constraints and the maximum salary offer. Negotiate: Explore flexibility in other areas, like additional vacation time or performance bonuses. Assess Fit: Evaluate if the candidate’s skills and experience justify the higher salary or if there’s room for adjustment. Consider Long-Term Value: Discuss potential future salary reviews and growth opportunities within the organization.

When interviewing a candidate with high salary expectations, start by understanding their unique value and how it aligns with your organization’s needs. Be transparent about your budget constraints early on, clearly outlining the limits. If flexibility in salary isn’t possible, consider offering non-monetary benefits such as flexible work options, professional development opportunities, or a strong work-life balance. This approach helps balance expectations while ensuring both parties find value in the potential employment relationship.

If the gap between the candidate’s expectations and our budget is too large to bridge, I’d respectfully acknowledge that and consider whether the candidate is the right fit for the role. It’s important to hire someone who is both a good match for the company and satisfied with the compensation

When offering creative compensation, be transparent about what’s included and how it works. Clearly explain how performance bonuses are calculated, what the vesting schedule is for stock options, or how flexible working arrangements will operate.

If you are working for a startup or scaleup (especially pre-Series A) consider VSOP i.e. virtual stock ownership program. It doesn't impact your cap table or equity but allows employees to participate in the financial success of the company. Tax-free stuff are also handy for some (e.g. meal vouchers, public transportation, etc.).