Accept NO less. Put NO one on YOUR payroll. SELL the benefit to the prospective employee that it puts THEM in control. Part ways as friends. Hard to do.
Some situations are different and have to be considered.
If you contract with an employment agency then a FEE is involved. One option is to use a staffing service with an agency division. You are competing for the BEST employee NOT the least expense. Let the agency know that you will not consider anyone less than a TOP candidate. You want a resume faxed to your office in advance.