Number One Job Challenge in 2026: Compensation Delusion, Both Candidates and Hiring Companies

Let me start by setting expectations. Owned this executive recruiting business for 22 years and placed 1,000+ executives. My space starts at $150,000; however, most of my placements are $200,000+. This article does not really pertain to individual contributors making $60,000

Candidates – Let me start by saying on a scale of one to ten, the current job market is a five. The Pandemic Job Gold Rush of 2020 gave way to the White-Collar Job Recession of 2023. No more 25% salary increases and working from your bedroom watching Netflix in your fuzzy slipper. RTO (return to office) is real. Roughly 80% of layoffs are remote workers.

Candidates, Part 2 – One of the first question I ask a candidate is, “What is your current base salary and what is your desired base salary to make a move?” For those that don’t want to disclose, you certainly don’t have to. And I certainly don’t have to represent you. We can get more of everything in life…except time. I’m not investing your time, my time, and my client’s time if you are making $150,000 and asking for $250,000. On the other hand, many executives are paid well above market rate. Great in the good times and muy malo (bad) during an economic downturn. Executives making $250,000 in a job that should pay $200,000. And they are asking for $300,000. I have seen people on the beach (unemployed) for years trying to get their glory days compensation.

Hiring Companies – Candidates move for three reasons. First, if you have a VP role at $200,000 you are going to see candidates at $150,000 that are looking for the salary bump. Anyone that tells you money doesn’t matter…doesn’t have any. Rarely see an executive take a lateral, and I have not seen a candidate take a salary decrease since the Pandemic. Second, if you are trying to hire a VP, mostly you will see Directors looking for the VP title. Third, you may find a candidate that wants to relocate to your location. In my case, a parade of executives that want to relocate to Las Vegas.

Hiring Companies, Part 2 – If you are not paying market rate of above, you are not getting anyone good. If you are using “post and pray” (online job postings) to hire for senior level roles, you are not getting anyone good. Two more issues. First, you won’t get three to five quality resumes for high end jobs. There are just not many top people available. Second, if you practice “death by due diligence” in your hiring process, you are out of luck. Good candidates have three job offers in two weeks.