One of the biggest mistakes I see companies make during the hiring process is assuming salary expectations are universal.
They’re not.
A compensation package that attracts top talent in one market may not even get a response in another. Yet many organizations continue benchmarking compensation based on what they’ve historically paid rather than what the market is actually demanding today.
The challenge becomes even more apparent as companies recruit nationally and remote work continues to expand candidate pools.
The Same Job, Different Reality
Imagine you’re recruiting a Regional Manager, Director, VP, or another leadership position. You find two highly qualified candidates:
- Candidate A lives in a Midwest market with a relatively moderate cost of living.
- Candidate B lives in a major coastal market where housing, transportation, insurance, and everyday expenses are significantly higher.
On paper, their experience may look nearly identical. Their compensation expectations likely will not.
This isn’t entitlement. It’s economics. The cost of maintaining the same lifestyle can vary dramatically depending on where someone lives. What feels like a strong offer in one city may feel like a pay cut in another.
Why Employers Get Frustrated
I often hear hiring managers say: “I don’t understand why compensation expectations are so different for the same role.”
The answer is usually simple: candidates aren’t comparing your offer to your budget. They’re comparing it to:
- Their current compensation
- Their local market
- Their future earning potential
- The cost of living where they reside
When those factors don’t align, great candidates walk away — even when they genuinely like the company.
The Hidden Risk of Underpaying
Most organizations focus on the immediate cost of increasing compensation. Few calculate the cost of:
- Leaving a critical role vacant for six months
- Losing productivity while a team operates short-staffed
- Repeated recruiting cycles
- Burnout among existing employees
- Hiring the wrong person simply because they fit the budget
The cheapest hire is often the most expensive decision.
Remote Work Changed the Rules
Five years ago, companies largely competed within their local geography. Today, a property management company in the Southeast may be competing against employers in Denver, Phoenix, Boston, Seattle, or New York for the exact same candidate.
The talent market has become national. Compensation strategies need to evolve accordingly. That doesn’t mean every company must pay top-of-market salaries. It does mean companies need to understand where their target candidates live and what those markets demand before establishing compensation ranges.
What the Strongest Organizations Do Differently
The companies winning talent today typically start with three questions:
- What is this role worth in our local market?
- What is this role worth in the markets where our ideal candidates currently live?
- What will it cost us if we don’t fill this position with the right person?
The answers are often very different. And that’s where smarter compensation conversations begin.
| Market Tier | Typical Compensation Range | Example Markets |
|---|---|---|
| Emerging Markets | Lower compensation expectations | Cleveland • Kansas City • Louisville • Cincinnati |
| Mid-Market Growth Cities | Competitive but balanced | Charlotte • Tampa • Raleigh • Nashville • Dallas |
| High-Demand Talent Markets | Premium compensation required | Denver • Phoenix • Atlanta • Boston |
| Coastal Premium Markets | Significantly higher expectations | Seattle • Washington DC • Los Angeles • Orange County |
| Ultra-Competitive Markets | National compensation benchmarks | New York • San Francisco • San Jose |
Note: Compensation varies by role, experience, company size, and market. Use this as a general guide.
A Perspective From the Search Side
This is one of the reasons we spend so much time discussing compensation strategy with our clients before recruiting ever begins. At H Two National, we don’t believe in taking a search and hoping for the best. We believe in having honest conversations upfront about compensation, candidate availability, geography, and market realities.
Sometimes the best candidate is in your local market. Sometimes they’re two states away. Sometimes the ideal candidate exists, but the compensation range and the market simply aren’t aligned. Those aren’t always easy conversations, but they’re important ones.
Our goal is to help clients understand where the talent is, what that talent is likely to cost, and how to build a recruiting strategy that aligns with both their budget and long-term goals. The more clarity we create on the front end, the more successful the outcome on the back end.
That’s not recruiting. That’s partnering.
If you’d like to better understand current compensation trends, candidate expectations, or how your hiring budget compares to the market, contact us and we’ll share what we’re seeing and help you build a strategy that sets your search up for success.
Frequently Asked Questions
Why do two candidates with the same experience expect different salaries?
A competitive offer depends on geography. The cost of maintaining the same lifestyle varies dramatically by market, so a strong offer in one city can feel like a pay cut in another. Candidates compare your offer to their current compensation, their local market, their future earning potential, and the cost of living where they live, not to your budget.
What is the real cost of underpaying to fill a CRE role?
Most organizations focus on the immediate cost of a higher salary. Few calculate the cost of leaving a critical role vacant for six months, lost productivity while short-staffed, repeated recruiting cycles, burnout among existing employees, or hiring the wrong person simply because they fit the budget. The cheapest hire is often the most expensive decision.
How has remote work changed CRE compensation strategy?
The talent market has become national. A property management company in the Southeast may compete against employers in Denver, Phoenix, Boston, Seattle, or New York for the same candidate. Firms need to understand where their target candidates live and what those markets demand before establishing compensation ranges.
What questions should employers ask before making an offer?
Three: What is this role worth in our local market? What is it worth in the markets where our ideal candidates currently live? And what will it cost us if we do not fill this position with the right person?
By Katlyn Turley, President of H Two National.