When a candidate’s salary expectations exceed the position’s range

Salary expectations in a law firmHiring attorneys, paralegals, legal assistants, and administrative staff is one of the most important responsibilities within a law firm. When a position remains open, there can be a natural temptation to keep advancing candidates even when their salary expectations are materially higher than what the firm advertised or budgeted.

That is usually a mistake.

A law firm should know what it can reasonably pay before it posts a position. If a candidate wants compensation far beyond that range, continuing through multiple interviews rarely changes the underlying problem. It consumes the candidate’s time, distracts the firm’s managers, and can create pressure to make an offer that does not fit the firm’s compensation structure.

Ask About Compensation Expectations Early

Every candidate should ordinarily complete an employment application before the firm invests substantial time in the interview process. Among other things, the application can ask what the candidate expects to earn.

This question is not designed to eliminate every candidate who gives a number above the advertised range. Some candidates may not have focused carefully on the job posting. Others may be describing their ideal compensation rather than the minimum amount they would accept. A candidate may also misunderstand the position’s bonus opportunities, benefits, or advancement potential.

When the difference is relatively modest, the firm can address it politely and directly. The recruiter might explain the base salary range, describe the complete compensation opportunity, and ask whether the candidate would still like to proceed.

But when the candidate’s expectation is dramatically outside the range, the parties may simply be too far apart. Unless the firm is genuinely prepared to change the position or its budget, there is little value in advancing the candidate.

A Salary Range Must Mean Something

Some employers treat an advertised salary range as the beginning of a negotiation rather than an actual hiring parameter. That approach creates problems.

If a firm repeatedly pays well above its advertised range, the range was probably not realistic in the first place. Conversely, if the range accurately reflects the position’s market, responsibilities, and value to the organization, the firm should generally remain within it.

Compensation decisions cannot be made in isolation. Employees talk to each other. When two people perform substantially similar work but receive materially different compensation, the difference can damage morale and confidence in management.

It can also create potential legal concerns if compensation differences are connected to protected characteristics. Federal law prohibits various forms of compensation discrimination, and the Equal Pay Act specifically addresses sex-based wage discrimination involving substantially equal work.

This does not mean every employee in the same general position must receive exactly the same compensation. Experience, seniority, productivity, supervisory duties, market differences, or a portable book of business may justify distinctions. The key is that differences should be based on legitimate, consistently applied factors—not on which candidate negotiated most aggressively or which manager happened to conduct the interview.

Do Not Solve an Applicant-Pool Problem by Breaking the Pay Structure

When a firm is not finding enough qualified applicants within its range, the immediate reaction is sometimes to increase the salary. That may occasionally be necessary, particularly if reliable market information shows that the range is no longer competitive. But compensation should not be increased merely because the first handful of applicants wanted more money.

Often, the better solution is to expand the applicant pool. The firm can advertise through additional job boards, work with other recruiters, improve the job description, contact promising prior applicants, or reconsider where and how it is promoting the opening.

A limited group of applicants can create a distorted picture of the market. More applicants give the firm a better opportunity to determine whether its compensation is truly deficient or whether it simply encountered several candidates whose expectations did not match the position.

Explain the Difference Between Base Salary and Earning Potential

Candidates sometimes focus exclusively on base salary. Law firms should clearly explain legitimate opportunities to earn more.

Depending on the position, these opportunities might include productivity bonuses, discretionary awards for work above and beyond normal expectations, employee-referral bonuses, or bonuses for referring new cases to the firm. These programs can allow high-performing employees to earn more without requiring the firm to inflate base salaries for everyone holding the same position.

Bonuses should not be vague promises used to persuade a candidate to accept an offer. The requirements should be understandable, realistic, and applied consistently. Candidates should know which opportunities are objective, which are discretionary, and what they must accomplish to qualify.

This structure also reinforces an important principle: employees who want to earn substantially more should have a path to do so by generating measurable value for the firm.

Know When a Candidate Is Applying for a Different Job

Sometimes a candidate’s salary demand reveals that the candidate is effectively seeking a different position.

A small or midsize litigation firm may be searching for a paralegal to perform the work described in its posting. The applicant may expect compensation associated with a senior corporate paralegal, a specialized regulatory role, or a management position. Likewise, an attorney may expect compensation based on a book of business or experience that the advertised position does not require.

The candidate may be talented. The requested compensation may even be reasonable for a different employer or role. But that does not mean the candidate fits the opening the law firm needs to fill.

Firms should avoid creating a new, higher-paid position during an interview merely because they like the candidate. If the firm truly needs a different role, leadership should define that role, establish its responsibilities, determine its place within the existing compensation structure, and then recruit for it deliberately.

Be Direct Without Being Dismissive

Candidates should be treated respectfully. There is no reason to criticize someone for wanting to earn more. At the same time, employers should not be embarrassed about maintaining a responsible budget.

A straightforward response is often best: the candidate’s expectations appear to exceed the approved range, and the firm wants to determine whether there is enough flexibility to continue the process. If there is not, both sides can move on without unnecessary interviews or frustration.

The goal of recruiting is not to interview the greatest number of people. It is to identify qualified candidates whose experience, expectations, and goals align with the position the firm is actually prepared to offer.

Law firms should establish realistic salary ranges, communicate them clearly, protect internal pay equity, and focus their time on candidates who are reasonably within those parameters. When the applicant pool is too limited, the solution is usually to attract more qualified applicants—not to abandon the firm’s compensation structure one candidate at a time.

If you have any thoughts, feel free to share them below.

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