One of recruitment's most avoidable problems continues to derail hiring: employer and candidate reach the end of a process and discover they were never aligned on salary.

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Recent employer research illustrates the size of the problem. In one 2026 survey, 69% of employers said they had lost a candidate because salary expectations were misaligned after salary had not been included in the job advertisement. Among employers that did include salary information, 91% said it improved application quality.

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Separate employer research found 58% expected meeting candidates' salary expectations to be a hiring challenge.

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The issue is not simply that candidates want more money and employers want to pay less.

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Salary expectations are being shaped by different information, different time periods and different definitions of what a role is worth.

Why salary expectations become misaligned

Candidates usually build an expectation using several reference points.

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Their current salary.

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What colleagues earn.

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What they have seen advertised.

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Online salary guides.

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Previous recruiter conversations.

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The increase they believe would justify changing jobs.

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Employers start somewhere else.

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Internal salary bands, existing team equity, approved headcount budgets and the perceived market value of the vacancy all influence the number.

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Both sides can therefore arrive at a rational figure and still be thousands of dollars apart.

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The problem becomes worse when neither side tests that assumption until late in the recruitment process.

A salary range is only useful if it reflects the real budget

Advertising salary can reduce ambiguity, but only when the range is meaningful.

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A very broad range such as $80,000 to $120,000 may generate applications, but candidates will naturally focus on different parts of it.

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Employers should know what would justify hiring at the bottom, middle or top of their stated range.

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If the organisation would never realistically approve the upper figure, including it creates expectations the process cannot satisfy.

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Employers also need to consider whether the salary reflects the job being advertised today rather than the budget originally allocated to the role several years ago.

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Scope changes.

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Responsibilities accumulate.

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Required skills evolve.

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Salary ranges need to be reviewed alongside them.

Candidates need evidence, not assumptions

Candidates can make the opposite mistake by deciding their market value entirely from what they want to earn next.

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A 15% increase may make changing employers worthwhile personally, but that does not automatically mean the market prices the position 15% above your current salary.

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Research market value from several sources.

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Compare similar advertisements.

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Review credible salary information.

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Speak with recruiters who work regularly within your specialisation.

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Consider differences in industry, organisation size, location, responsibility and seniority.

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Then connect your expectation to evidence.

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If you are seeking the upper end of a range because you have scarce technical capability, leadership experience or a record of delivering relevant results, explain that.

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An evidence-based salary conversation is much stronger than, "That is simply what I am looking for."

Employers need clarity earlier in the process

There is little value in conducting four interviews before discovering the candidate requires a salary the organisation cannot approve.

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Salary alignment should happen early enough to identify a genuine gap without turning the first conversation into a negotiation.

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Candidates also benefit from raising the issue.

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Asking for the approved salary range does not demonstrate a lack of interest in the position. It establishes whether there is a realistic basis for continuing.

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There may still be room for movement.

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Recent employer research has found that specialised skills, years of experience and available budget are among the factors businesses consider when deciding whether to increase an offer.

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But flexibility should not be assumed.



Better salary conversations start before the offer

For candidates, know three numbers before you begin seriously interviewing:

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Your current total package.

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The market range supported by your research.

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The level below which changing jobs would not make sense for you.

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For employers, know the approved range, what determines placement within it and whether there is any genuine flexibility for exceptional candidates.

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Then communicate.

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Salary negotiations will never disappear, nor should they. Compensation is one of the most significant parts of the employment relationship.

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The unnecessary part is the surprise.

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When candidates research their value properly and employers communicate realistic budgets earlier, the salary conversation becomes less of a standoff.

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Both sides can spend more time determining whether the opportunity itself is right, knowing that the numbers have a realistic chance of working too.