How to Have the Money Talk Early Without Scaring Candidates Away
The salary conversation is the most uncomfortable part of recruiting, which is why everyone tries to avoid it until the very end. Then you get to the offer stage, discover you're $40K apart on expectations, and waste everyone's time. There's a better way.
Let's talk about how to have honest salary conversations early without making candidates feel like you're trying to screen them out based on their compensation requirements.
Lead With Transparency, Not Interrogation
The wrong approach: "So what are your salary expectations?" in the first five minutes, before you've even discussed the role. This makes candidates feel like you're trying to eliminate them based on cost before evaluating their fit.
The right approach: Share your range first. "This role has a salary range of $140K-$180K depending on experience, plus equity and benefits. Does that align with what you're looking for?" Now you're providing information, not demanding it.
Salary transparency laws are spreading across the US, but even where they're not required, leading with your range builds trust. Candidates appreciate knowing immediately whether you're in the same ballpark. It saves everyone time and signals you're operating in good faith.
If you don't have a defined range (which, honestly, you should), at least ballpark it. "We're budgeting this role in the $120K-$160K range, though we have some flexibility for exceptional candidates." Not perfect, but better than playing guessing games for three weeks.
Frame It as Alignment, Not Gatekeeping
Your goal isn't to screen out candidates based on salary - it's to ensure mutual fit before investing time in a lengthy process. Frame the conversation that way.
"I want to make sure we're aligned on compensation before we both invest time in interviews. Our range for this role is X-Y. If that works for you, great - let's talk about the role in detail. If you're looking for something higher, I'd rather be upfront now so we're not wasting your time."
This approach makes it clear you respect the candidate's time and aren't playing games. Most candidates will appreciate the honesty even if the range doesn't work for them. Some might even be flexible on their initial expectations if the role is compelling enough.
Avoid phrases like "what's your walk-away number?" or "what's the minimum you'd accept?" These signal you're trying to lowball them. Instead: "What range are you targeting for your next role?" This asks for their expectations without the adversarial framing.
Timing Matters More Than You Think
Too early (in the first email outreach): Comes across as caring only about cost, not the candidate's qualifications or fit. Candidates feel like a commodity.
Too late (after multiple interviews): Wastes everyone's time if you're not aligned. Creates resentment when candidates realize they spent 6 hours interviewing for a role that was never going to meet their expectations.
Just right: During the first real conversation (initial screen or recruiter call). After you've discussed the role and they've expressed interest, before any formal interviews. You've established mutual interest but haven't committed significant time yet.
For passive candidates you're reaching out to, include the range in your initial message if it's competitive. "The role offers $160K-$200K plus equity" is information they need to decide if they're even interested. If your range isn't competitive, at least mention "total compensation is competitive for senior roles" so they know you're not trying to underpay.
Handle the "Depends on the Total Package" Response
Smart candidates won't commit to a number without understanding the full picture. They'll say something like "I need to understand the equity, benefits, and growth potential before committing to a number."
This is reasonable! Your response should provide that context. "Totally understand. Let me give you the full picture: base salary is $X-Y range, equity grant is typically Z shares/dollars for this level, we offer full benefits including [key highlights], and here's the growth trajectory for this role."
Now they have enough information to determine fit. If they're still hesitant to share their target, that's fine - you've been transparent about what you're offering. Focus the conversation on role fit and opportunity, and circle back to compensation when you're ready to make an offer.
Some candidates are coached to never share their current salary or expectations. Don't push. If you've shared your range and they've expressed continued interest, you're aligned enough to move forward. The offer stage is when you'll get specific about numbers.
Don't Make It Weird
The salary conversation only gets awkward when recruiters make it transactional. Avoid:
- Acting apologetic about your range ("I know it's not much, but...")
- Pressuring candidates to justify their expectations ("Why do you think you're worth that?")
- Negotiating before there's an offer ("Would you consider X if we offered that?")
- Making them disclose current comp ("What are you making now?") - in many states this is actually illegal
Instead, be matter-of-fact. Compensation is one factor in a job decision, alongside role, growth, team, company, etc. Discuss it like the practical consideration it is, not like a shameful secret.
When the Numbers Don't Align
If you're too far apart, say so directly. "Based on what you've shared, it sounds like you're targeting $180K+ and our budget for this role maxes out around $160K. I don't think we're going to be able to get to a number that works for both of us."
This gives candidates closure and lets them move on. Sometimes they'll come back with "Actually, I'm flexible if the opportunity is right." Great! Keep talking. Sometimes they'll thank you for being upfront and move on. Also great - you've saved everyone time.
Don't try to convince candidates to take less than they want. "The experience here is really valuable" or "we make up for it in culture" sounds desperate and insulting. If your compensation isn't competitive, that's a company problem to fix, not a candidate problem to negotiate around.
The Bottom Line
Have the salary conversation early. Lead with transparency. Frame it as ensuring mutual fit, not as gatekeeping. Be specific about your range and what flexibility you have. Don't make it weird by apologizing or pressuring candidates.
Most candidates will appreciate the direct conversation. The ones who don't probably aren't great fits for your process anyway. You'll save time, build trust, and avoid the disaster of getting to offer stage only to discover you were never aligned on compensation.
Just talk about money like adults. It's really not that hard.
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