Earlier quoted context omitted.
"these tests allow the company to burn a lot of a candidate's time, but not the other way around " Oh yes the other way around. At a previous employer, two of us took 3 full time months to review over 100 qualified candidates (i.e. that returned the task) to make 10 offers. We made an offer to anybody who met our standards - whilst management initially restricted our headcount, they allowed us to expand the team as g…
> the main restriction ended up being the maximum salary we were allowed to offer (which had us have to give up on half a dozen candidates) Ugh. I've been in a similar position, assisting with pouring over candidates. The worst part about salary being the limiting factor is you've quite literally wasted your time weeding through the poor candidates to find the honest-to-goodness best to hire - only to not be allowed…
If someone is very junior or has some other discount factor (in practice that's the only real one), you'll probably go lower than expected for a 30 year old with a PhD, freeing budget to bump up someone else.
And sometimes, you get a stellar CV with enough brand on it to make the staunchest McKinsey reconsider his limit policy, so whilst you can't put the number on the ad, you can warn the candidate, get his number, and take a punt on management in case it might work.
The strongest factor for flexibility is when you have a chance to affect the outcomes for the company, but need to prove it before you can claim the pay raises. Then, it makes sense to take somebody at under their market rate, and 3 months later have a chat with management and bump up.
Hiring is a really sensitive topic because HR is often the biggest budget. I once seriously weakened my political position by attempting to automate away "Excel blue collar workers" in another department, which would have lowered the budget and therefore relative power of their boss internally. Those with the most flexibility in hiring (startups, which have no established internal territory to worry about) also have the least resources...