Most small businesses overpay for new hires.
Sometimes it’s because the salary was simply too high. But more often, it’s because the role was never properly defined before the advert went out.
A vague advert attracts the wrong mix of candidates. Salary expectations inflate because there’s nothing anchoring them to the actual level of the job. And you end up spending time and money on hires that don’t stick.
This is something we see a lot. The good news is that it’s fixable.
Why vague adverts cost you more than you think
Often, business owners write job descriptions that are too broad with unclear expectations of the role.
As a result, you get candidates applying who are overqualified, underqualified or just not right. You spend hours sifting through applications that shouldn’t have come in.
And when you do find someone promising, they’re expecting more money than you planned because the advert gave them room to set that expectation themselves.
Sounds familiar?
The true cost of a mismatched hire
Salary is the main cost of a hire most people think of. But there’s a bigger cost involved if you don’t hire the right person.
You lose time managing someone who can’t perform at the level you need. Your other employees pick up the slack, which affects morale and productivity.
If the hire doesn’t work out, you’re back to square one, paying to recruit again while the gap in the team causes disruption.
An overqualified hire can be just as costly. They get bored, they want progression you can’t offer and they leave. You’ve paid above the odds for someone who was never going to stay.
Attract the right people at the right price with level-based adverts
When a job advert is vague, salary becomes the main thing candidates negotiate on.
When the advert is specific about the level, candidates can see what the role requires and self-select based on whether it matches where they are.
If you want your advert to attract the right people at the right level, focus on these things:
- what the role delivers for the business, not just what it’s called
- the specific decisions this person will and won’t be responsible for
- the level of experience you’re looking for and why that level matters
- what success looks like in the first few months
- honest context about the size and stage of your business
Small businesses often undersell themselves in job adverts. Being upfront about what you offer, including autonomy, direct impact and closeness to decision-making, can be more attractive than a bigger salary at a larger company.
Going a step further with multiple levels
If you’re not sure exactly what level of hire you need, consider advertising the role at more than one level.
For example, you might create an entry-level version, a mid-level version and a more senior version of the same role. Each one would describe different expectations around output, decision-making and autonomy, with a salary range to match.
This gives you a much clearer picture of who is out there and what you can realistically get for your budget.
It also opens up options that you might not have considered. Someone earlier in their career with the right attitude and a clear development path could be a better long-term investment than a more experienced hire who costs significantly more.
The point is to test the market with clarity rather than guesswork.
Where an HR consultant can support you
An experienced HR consultant can help you to define the role properly before you write the advert, so that you attract the right candidates from the start and avoid overpaying for a mismatch.
That includes scoping the level of the role, structuring the advert and helping you to benchmark the salary based on what the role genuinely requires.
Let us know if this is something you need help with and we’ll be happy to talk it through.