Inside the Salary Gap: Perspectives from Both Sides of the Hiring Table
In today’s labour market, where competition for talent remains fierce and economic uncertainty continues to influence business decisions, few topics generate more tension or debate than salary expectations. Salary has always been a sensitive topic, but today it has become a more complex conversation shaped by inflation, remote work, shifting candidate priorities, and increased access to compensation data.
To explore this issue from both sides of the hiring table, we launched an #AplinAsks poll for hiring managers and job seekers, focused on salary alignment.
What we asked:
For hiring managers: "How aligned are candidate salary expectations with your hiring budget?"
For job seekers: "In your recent experience, have employers met your salary expectations?"
The results reveal an apparent disconnect between what candidates expect and what employers can offer, uncovering an opportunity for better alignment.
Two Sides of the Salary Gap
The Employer Perspective
A combined 36% of employers said salary expectations rarely or never align with their budget. Nearly half reported partial alignment, while only a small group felt that expectations were entirely in sync. From a staffing lens, this isn't surprising. Many employers are still adjusting to shifts in the labour market. Wage expectations for skilled professionals have risen quickly, while internal budgets often remain static due to broader financial pressures.
The Candidate Perspective
A significant 58% of job seekers say employers rarely or never meet their salary expectations, while only 8% said their expectations are always met. This tells us that many candidates are walking away from interviews feeling undervalued. Recruiters know that when expectations aren't aligned early, it can lead to delays, offer rejections, or even brand damage.
What's Causing the Disconnect?
Salary misalignment often begins with a fundamental difference in how compensation expectations are shaped. In many industries experiencing talent shortages, wages have increased as companies compete for in-demand skills. However, internal salary structures are slower to adapt. Employers must navigate legacy pay frameworks, internal equity, and financial planning, which can limit flexibility, even when the market shifts quickly.
On the candidate side, expectations are rising and becoming more defined. Access to salary transparency laws, employer review platforms, benchmarking tools, and online communities has made compensation information more available than ever. Job seekers are entering the process with firm numbers in mind, often influenced by data that doesn’t always match regional or role-specific realities. This difference in perspective creates a growing gap between what employers can offer and what candidates believe they should earn.
Recommended by LinkedIn
Rethinking Salary Expectations: Insightful Tips
What Employers Can Do
- Understand how candidates form expectations. Online benchmarks, peer networks, cost of living, and current inflation trends influence candidates. Knowing this helps frame your compensation conversation with empathy and context.
- Audit internal equity before going to market. Ensure you’re not creating misalignment by posting higher salaries externally while underpaying internally. Candidates talk! Especially those being referred.
- Be clear on what you're paying for. Candidates need to understand what the salary reflects. Is it based on years of experience, business impact, niche skill sets, or scope of responsibility?
- Be upfront about compensation. The earlier it's discussed, the smoother the process.
Tips for Job Seekers
- Distinguish between personal worth and market value. Your experience is valuable, but salaries are based on supply, demand, and budget realities. Understand how employers calculate compensation.
- Account for total compensation, not just salary. Benefits, growth potential, flexibility, and stability all have value. Consider how those factors influence the full offer.
- Ask early, but stay open. It's smart to ask about the range upfront, but also ask why that range exists. Is there stretch potential for the right candidate? What internal factors shape the range?
- Understand the context. Salaries vary by location, industry, and role. Ask questions if you're unsure.
Compensation is still one of the most sensitive and defining moments in the hiring process. Misalignment happens when both sides bring valid numbers to the table, but based on entirely different reasoning. Candidates often base their expectations on online data and personal career goals. On the other hand, employers must balance budgets, internal equity, and long-term workforce planning.
Closing the gap requires both sides to revisit how they define value, what the role truly demands, and how external market forces are shaping expectations.
At Aplin, we help bridge the gap with market data, honest conversations, and strategic recruitment. We’re kicking off the release of our 2025 Salary Guides, created in collaboration with Impact Recruitment, an Aplin brand. The first edition, focused on the Insurance sector, is available now as a free download: https://www.aplin.com/salary-guides/
Additional industry-specific guides are coming soon, each month.
About Aplin
Aplin is an employee-owned Canadian staffing firm that has delivered award-winning recruiting solutions for 50 years. As one of Canada's Best Managed Companies, Aplin provides temporary, contract, permanent, and MSP staffing services across various industries throughout Canada and the U.S. With a commitment to quality and a people-first approach, Aplin continues to fulfill talent demands and advance careers. Visit www.aplin.com