Talent Is Expensive. So Is Settling.
Let's call it what it is: lowballing has become a strategy. Companies are dragging out hiring timelines, offering compensation that barely clears the bar, and acting surprised when top candidates disappear halfway through the process.
Here's the truth: underpaying might save budget on paper, but it costs you in productivity, morale, and do-overs. You're not dodging expenses, you're deferring them. And by the time you circle back with a stronger offer, the best candidates have already signed elsewhere.
This isn't about being the highest bidder. It's about being credible, competitive, and aligned with what talent actually values in 2025.
The Talent Is Out There. But They're Not Settling Either.
The talent shortage narrative is overblown. High performers exist. They're open to the right roles. They're just not making career moves for outdated compensation.
Whether they're passive or active, the best candidates are evaluating multiple offers, and they're reading between the lines. When your comp doesn't reflect the scope or impact of the role, it signals either a lack of strategy, a lack of urgency, or both.
That message? It's costing you.
And no matter how compelling the opportunity, the employer brand, or the recruiter's pitch, when the offer disappoints, the pipeline dries up fast.
Stop Calling It Negotiation When It's Just Bargain Hunting
Negotiation should be strategic. Collaborative. Grounded in real value alignment.
But too often, it turns into a race to the bottom where employers open with a low anchor, cross their fingers, and hope the candidate doesn't push back.
Here's the reality:
Only 45% of job seekers actually negotiate…
But 78% of those who do receive a better offer.
Top talent knows how to advocate for themselves. If your compensation strategy isn't built with negotiation in mind, you're not leading, you're reacting.
And Gen Z? They're negotiating more than any generation before. The next wave of high performers won't hesitate to walk away from a role that doesn't match their worth or their peers'.
Compensation Strategy Is Not One-and-Done
The market has shifted, again. If you haven't revisited your compensation bands this quarter, you're already behind.
Inflation, hybrid work models, private equity holding periods, and evolving business goals have changed the game across functions. According to BLS data, hourly wages have risen 3.9% year-over-year, and your comp strategy needs to keep pace.
Ascentria's 2025 mid-year compensation guide, drawn from data between Jan 2024 and June 2025, reflects real-time shifts in companies with $15M–$2B in revenue. These are your peers. And they're not standing still.
Snapshot: What Top Talent Expects Today
Real data from Ascentria's Mid-Year 2025 Compensation Guide
VP Sales OTE: $285K–$480K + equity
Senior Marketing Roles: up to $235K + 25% bonus
Corporate Controller: $145K–$250K + 20% bonus
Hybrid Flexibility: Still a must-have for top talent
Download our latest Compensation Guide for full salary bands, bonus structures, and emerging trends.
What About Sales? They're Not Buying It Either.
Sales teams are under more pressure than ever, facing new pricing models, longer sales cycles, and tighter targets. Outdated compensation plans are one of the fastest ways to lose (or demotivate) your top closers.
Here's what the data says:
Sales Directors earn up to $380K OTE, and VP Sales roles top out at $480K—plus equity.
Non-manager Sales "hunters" expect OTE in the $150K–$260K range.
But it's not just how much—it's how smart.
Top-performing companies are overhauling their sales compensation models in 2025, prioritizing:
Pay-for-performance structures
Margin-aligned incentives
Strategic comp tied to business goals
Agile, AI-informed quota setting and analytics
If your comp plan still rewards volume without precision or lacks transparency, you're already behind.
Internal Equity Isn't Optional Anymore
One of the biggest blind spots in compensation? What it's doing to your current team.
According to Ascentria's research, long-term employees are raising red flags about internal equity. Why? Because the market-rate offers you're using to attract new hires are creating pay gaps you can't ignore.
As a result, internal comp audits are on the rise. And they should be.
Comp isn't just about hiring, it's about retention. When your people learn that the new hire sitting next to them makes 15% more for the same work, trust erodes fast.
Comp Sends a Message. What Is Yours Saying?
Compensation is more than a number. It tells candidates how much you value the role, how well you understand the market, and how serious you are about landing the right people.
And in today's landscape, where top talent has options, that message needs to be both competitive and compelling.
So if you're struggling to hire or retain high performers, the question isn't "Where are all the candidates?"
It's "What are we signaling with our offer?"
Need to Recalibrate? Start Here.
We created the Mid-Year 2025 Compensation & Hiring Guide to provide you with real-time, market-tested insights across Sales, Marketing, Operations, HR, Accounting, Finance, and the C-Suite.
It's not just a salary table; it's a strategy tool.
Use it to:
Set offers that win
Audit for internal equity
Understand what top performers expect now
Build credibility in your hiring process
Because the most expensive hire you can make…
is the one you can't close, or the one who leaves too soon.