The Talent Cost of Playing to the Middle

Why ‘Median’ Isn’t a Hiring Strategy in Regulated and Scaling Firms

When it comes to senior hiring, especially in regulated sectors, there’s a tendency to over-rely on broad market data — particularly when setting compensation levels.

It usually plays out like this:You’re planning to hire a key PCF or leadership role. Someone pulls a salary survey. The range looks wide enough to seem credible. And there, halfway down the page, sits a median figure that feels... comfortable.

You aim for the middle. You advertise. You brief your recruiter. You move quickly.

But then the reality hits.

The calibre of candidates you want — the ones with credibility with regulators, experience in scaling complex teams, and an ability to land in your business and lead from day one — aren't showing up at that number. They’re either well above it, have better offers elsewhere, or they’ve already moved. You’re fishing in a different part of the market than you thought.

This is the hidden cost of treating compensation as a tick-box — and the market as a monolith.

Why the median misleads

The median salary figure is useful for context, but it’s not the answer. It reflects what people in those roles are currently earning — not what’s required to attract the people you actually want. And certainly not in dynamic, fast-evolving markets like digital assets, payments, or other MiCA-licensed firms scaling into Europe.

For example, we recently completed a compensation mapping exercise for a firm preparing for European expansion. The existing salary data — pulled from publicly available reports and benchmarking tools — placed the PCF-14 (Head of Risk) role comfortably within range. But once we mapped actual moves in the last 12 months, filtered for crypto-regulated environments and multi-jurisdictional experience, the target moved significantly. In practice, the top candidates were landing 20–30% above the median, often with structured bonus and equity components layered in.

This isn’t inflation or salary creep. It’s the market telling you what capability now costs.

Beyond base: total package and perception

It’s also important to note — while base salary is a critical headline number, senior hires look at the total picture:

• Bonus structure (and how realistic it is)

• Equity upside (if any, and how it’s explained)

• Autonomy and strategic influence

• Remote/hybrid flexibility

• Who they’ll report to — and how decisions get made

If your offer isn’t compelling across that full spectrum, the compensation number becomes a distraction. You may think you’re close. They may feel you're miles off.

What to do differently

If you’re hiring with serious intent — particularly in regulated roles — here’s what we recommend:

1. Use current, role-specific market mapping – Go beyond generic surveys and gather fresh data relevant to your sector, growth stage, and regulatory complexity.

2. Distinguish between what people are earning and what top candidates will move for – There’s a difference, and it’s growing.

3. Adjust internal expectations early – Hiring managers and boards often anchor to outdated comp expectations. Bring them along from the start.

4. Make the offer process as strategic as the search itself – Don’t tack it on at the end. The way you structure and communicate your offer says a lot about your business.

In high-stakes markets, where regulatory approval, investor confidence, and business velocity depend on getting the right leadership in place, hiring at the midpoint isn’t a strategy. It’s a gamble.

You don’t need to overpay. But you do need to pay attention.

#PCFRoles #CompStrategy #LeadershipHiring #ExecutiveSearch #MoveTheDial