2026
–A Ten Part Series–
Part Five
by
Bob Marshall
June 2nd, 2026
Part Five – Compensation Range
One of the most important pieces of information in any Job Order is the compensation range.
As Recruiters, we need to know three numbers:
• The low end of the range
• The target or ideal compensation
• The high end of the range
At the same time, we need to discuss our service charge with the Hiring Manager, quoting it both as a percentage and in actual dollars.
Why both?
Because people hear information differently.
Over the years, studies on communication have consistently shown that people can only process a limited amount of information at one time. In a busy hiring discussion, compensation, urgency, candidate requirements, interview schedules, internal politics, and budget concerns are all competing for attention.
That means we can never assume the Hiring Manager fully understands what we’re saying simply because we’ve said it once.
If the anticipated salary is $160,000 and your fee is 30%, don’t just say “30%.” Also say, “That would be a fee of approximately $48,000.”
Likewise, don’t just discuss the fee in dollars. Reinforce it in percentage terms as well.
Clarity prevents surprises later.
Now let’s talk about one of the biggest mistakes Recruiters make: revealing the compensation range to candidates.
Suppose the Hiring Manager tells you the position has a salary range of $158,000 to $162,000.
To the company, those numbers represent a budget.
To the Recruiter, they represent a placement opportunity.
To the Candidate, however, they often become an expectation.
And that’s where problems begin.
Imagine a candidate currently earning $150,000. You tell them the salary range is $158,000 to $162,000.
What number do they focus on?
Almost never $158,000.
They immediately see themselves earning $162,000.
In fact, they may mentally round that number up to $163,000, $164,000, or even higher. Before long, they have discussed it with their spouse, their friends, and perhaps even their financial advisor.
The company, meanwhile, is looking at the situation very differently.
They are thinking about budgets, internal equity, bonus structures, future increases, and controlling hiring costs. Even though they have approved a range of $158,000 to $162,000, they may strongly prefer to hire someone near the lower end.
The Recruiter is standing somewhere in the middle, trying to bring both parties together.
Let’s assume the target compensation is $160,000 and the expected fee is $48,000.
Now there are three parties involved:
The Candidate wants the high end.
The Company prefers the low end.
The Recruiter wants an agreement.
Then the offer arrives at $158,000.
Objectively, this is an $8,000 increase over the Candidate’s current compensation. Most people would consider that a positive career move.
But because the Candidate was allowed to focus on the top of the range, the reaction may be:
“Why are they offering me the lowest number?”
The offer hasn’t changed.
The Candidate’s expectations have.
And expectations are often more powerful than facts.
This is why experienced Recruiters keep compensation ranges confidential.
Instead of discussing the employer’s range, discuss the Candidate’s expectations.
Ask:
“You’re currently earning $150,000. What compensation would make a move worthwhile?”
Perhaps they respond:
“I’d like to be around $154,000 or $155,000.”
Now you have useful information without creating unrealistic expectations.
You can respond:
“Let’s see if we can get there.”
On the client side, you are working in the opposite direction.
You are positioning the Candidate as a strong hire while maintaining flexibility in the compensation discussion.
The goal is not to negotiate against either side.
The goal is to bring both sides together at a number that creates a successful hire.
The best Recruiters don’t sell salaries.
They manage expectations.
And expectation management is often the difference between an accepted offer and a declined one.
A Quick Story
Years ago, I watched a Recruiter lose a placement because he thought he was helping the Candidate.
The client authorized a salary range and the Recruiter immediately shared the top number with the Candidate.
For the next three weeks, that Candidate became emotionally attached to the highest possible compensation.
When the offer came in—well above the Candidate’s current earnings but below the top of the range—the Candidate rejected it.
A month later, the position was filled by someone else.
The original Candidate stayed where he was.
The client lost confidence in the Recruiter.
And the Recruiter lost a substantial fee.
Nothing was wrong with the offer.
The problem was that expectations had been set improperly from the very beginning.
The lesson?
Information is powerful.
But in recruiting, knowing what not to disclose can be just as important as knowing what to ask.
Next week: Part Six – The Hiring Sequence
Bob Marshall began his recruiting career over 45 years ago at MR in Reno, NV. In 1986 he established The Bob Marshall Group, International, where he has trained recruiters throughout the United States and also in the United Kingdom, Malta and Cyprus. With a dedication to executive recruiting, he continues to offer his proven training systems to individuals, firms, and private corporations both domestic and in select international territories. To learn more about his activities and descriptions of his products and services, contact him directly @770-898-5550/470-456-0386(cell); bob@themarshallplan.org; or visit his website @ www.TheMarshallPlan.org.
Bob Marshall
President
TBMG, International
247 Bryans Drive, Suite 100
McDonough, GA 30252-2513
770-898-5550
520-842-5550 (fax)