When the right candidate costs more than expected: Why the best hire is rarely the cheapest one
About the Author
Nick Koop, Director
With more than 11+ years of recruitment experience, Nick specialises in engineering recruitment across Australia. He has built strong relationships with everyone from boutique consultancies and start-ups through to global engineering firms, earning a reputation for honesty, transparency and doing what he says he'll do.
Born and bred in Melbourne, Nick spends most weekends watching sport, chasing after his young kids, Louey and Odie, or finding an excuse to support a local pub with a well-earned pint.
Contact Nick
Want to discuss your next engineering hire? Give Nick a buzz or drop him a line via:
📧 nick@vividrecruitment.com.au
You can also connect with Nick on LinkedIn or follow the Vivid Recruitment LinkedIn page for more industry insights, news, jobs and general chit chat and tips!
Recruitment conversations often start with a salary range.
"What's the market rate for this role?"
"Can we find someone with these skills within this budget?"
And those are fair questions.
But sometimes the biggest mistake a business can make is focusing only on the cost of the hire, rather than the value of the person they're bringing into the team.
Recently, I've seen examples where a client has recognised the potential of a candidate beyond the initial market expectations.
Instead of asking, "Can we get someone like this for our budget?"
They asked:
"What impact could this person have if we put them in the right position?"
That shift in thinking can completely change the outcome.
The market is competitive, but the best people are still worth investing in
The reality is that great candidates know their value.
People with the right combination of technical ability, industry experience, leadership skills and cultural fit are not sitting on the market for long periods waiting for the perfect opportunity.
They are often already employed.
They are usually considering multiple conversations.
And when they do move, they are looking for more than just a salary. They want the right environment, the right projects and a business that recognises what they can bring.
Sometimes securing that person means moving slightly beyond the original salary expectation.
The cost of the wrong hire is much higher
For a critical role, the difference between an average hire and an exceptional hire can have a significant impact.
The right person can:
- Lead and mentor a team
- Improve project outcomes
- Strengthen client relationships
- Bring new capability into the business
- Help attract other talented people
The wrong person can cost far more than the salary difference.
Delays, missed opportunities, additional recruitment costs and the impact on team morale can quickly outweigh the initial investment.
The best businesses understand the difference between cost and value
This doesn't mean every candidate should be offered above market rate.
It means businesses need to recognise when someone brings something exceptional to the table.
The question shouldn't always be:
"How much will this person cost us?"
It should be:
"What could this person help us achieve?"
The market doesn't adjust to fit your budget. Your budget needs to reflect the person you need to attract.
In a challenging hiring market, the businesses that attract the best people are often the ones willing to see the bigger picture.
Because ultimately, the biggest mistake isn't paying too much for the right person.
It's missing out because the value wasn't recognised early enough.
If you're hiring for a role where the right person can genuinely change the trajectory of a team or business, understanding the market is critical.
That's where honest conversations, market insight and a clear understanding of what great people are looking for can make all the difference.
