Earlier quoted context omitted.
At the same time, it says something about the HR process if the hiring manager says that filling the position is critical and that this person would be adequate for the job (even if not game-changing), that HR will fight tooth-and-nail to not consider this person just because every checkbox is not precisely checked in exactly the right way.
Exactly this. HR wanted to hold out for a unicorn candidate when we're geographically in an area that makes finding such a candidate difficult and when the pay they were willing to offer wasn't going to attract a unicorn. Meanwhile, we were having to spend several multiples the cost of an employee on outside consultants just to keep daily operations going and had been doing so for months. It probably doesn't help tha…
It is a board-level decision on salary ranges that prevents you from hiring "at market".
Clearly there will always be some excellent developers at any given moment, available to work sub-market for their own, irrelevant reasons - and these will be the "unicorns", and typically your dev team will be full of them (somewhat by definition because they have already been hired by the unicorn-finding process).
The question as to why many (most?) highly profitable companies refuse to "pay market" is very interesting and I do not have a good answer to.
The best I can come up with is that actually the company (i.e. the important people in the company: the board) explicitly doesn't want to pay for the best (or even above average) candidates, through some recognition/perception that they "do not need the best". But the development team does want to hire good guys, and so you have a kind of stand-off by proxy between the technical team and the board via HR.
The board may be focussed on a buy-out, or this year's figures or making some kind of an exit. I very much doubt the board for most companies sees developers as anything other than a fungible commodity.
Add in the fact that developers are seen as subordinates to management, and that many developers are already approaching or at their managers' (often low-ish) salaries(1), and I think advertised developer salaries will continue to be massively under-market (there are of course exceptions).
(1)Of course managers often get 100% bonuses while developers do not, so this is an untruth, but humans are emotion-driven and so this barrier remains. Realise that companies will happily pay way more than 2,000 USD per day for the very same resources they will not recruit for more than 75,000 per year, and the picture is complete.
The situation is exacerbated by our inability as a field to successfully discriminate between good and bad hires and our resultant desperate, near religious avoidance of false positives in the hiring process.