Excellence vs. Cost: Which Hire Should You Choose?

I usually write based on questions I get from CEOs and small business owners. This one should be on everyone’s mind, but surprisingly rarely gets asked:

Do you hire the excellent candidate who costs more, or the qualified-but-fine candidate who costs less?

With salary costs rising, it’s tempting to hunt for the lowest number that puts someone in the seat. Let’s look at whether that’s actually the better deal.

The Case for Excellence

They get more done. Excellent employees often produce up to 20% more in a 40-hour week than average performers. That’s close to an extra day of work every week.

They’re more engaged. Gallup finds only 23% of employees are engaged — but teams in the top quartile of engagement deliver 40% higher quality work and 21% higher productivity. Pay is a meaningful part of that.

They need less managing. Experience and self-motivation mean you spend less time problem-solving and more time leading.

They lift the people around them. Excellence is contagious. When one person raises the bar, others follow. You’re not just hiring one great employee — you may be upgrading the whole team.

But What About the Cost?

Fair question. Let’s use real numbers. In compensation studies, the range from the bottom to the top of a band is typically about 25%.

Take an Accounting Manager in Atlanta. Median salary lands around $125K. The top of the range is about $153K; the bottom, about $98K.

So the difference between an average performer and a rock star is roughly $28K a year — about $2,333 a month.

The Question That Baffles Me

Why do so many companies aim for the $98K-$125K range to save money, when a superstar is available for $28K more?

Think about what you spend on every other line item in the business. Would you choose the cheapest brain surgeon? The cheapest wedding venue? So why skimp on the people who drive the business forward?

The Bottom Line

I get it — you can’t hire top-dollar talent for every position. But for your key roles, ask whether saving $2,500 a month is worth giving up 20% higher productivity, 40% better quality work, a self-motivated employee who raises everyone around them, and far less of your own time spent managing.

Next time you’re hiring, don’t just ask your recruiter for the least expensive candidate who’ll say yes. Consider what excellence is actually worth. It may be the best investment you make in the business all year.

Working through one of these decisions right now? Grab a free 30-minute session with one of our HR experts, and let’s think it through together.