How to Answer “What Are Your Salary Expectations?”
Show your employer you’ve done your research. Let them know that you have a good idea of what other people in a similar role are getting, but ask for more detail about their position. If possible, try to avoid giving them an exact number. Let them show their cards first. “I’ve done some research and have a market range in mind for compensation. But I’d like to hear what you have in mind for someone with my experience.” “I could give you a range based on my industry research, but I’d like to get to know more about the position and company first. What’s the typical compensation structure like at this company?”
Provide a range—not a set number—to show you’re flexible. Set the lowest end of the range to a number you absolutely won’t go beneath. Ideally, you and the company will settle somewhere in the middle of your range. Set the highest point of your range to a still-reasonable number about 10% higher than what you’d really want. “Based on the market range for this position and my skills, I’d expect to earn between $42,000-$47,000. However, overall fit with the company and the job itself is more important to me than the exact starting salary, so I’m willing to be flexible.” “I’m looking for a position with a salary range of $51,000-$55,000, but I’m willing to negotiate based on other benefits and stock options.” The range strategy works especially well in the initial application phase, particularly if you’re unsure about typical compensation or the role’s responsibilities.
Reiterate what you’d bring to the role. Hiring managers want to see passionate candidates who can become valuable team members. Keep your tone positive and make it clear that the salary is only part of what you’re seeking. Mention the opportunity the job itself brings, the potential for expanding your skills, and why you feel like you’d be a great choice for the company. “I’d be looking at a range of $58,000 to $62,000, given the experience and rich, industry-specific skill set I’d bring to this role.” “I’m really excited about the opportunities for growth in this role and the ability to contribute to such an ambitious company vision. That being said, I am looking for a position with a compensation range between $47,000-$50,000 at this point in my career.”
Commit to a number later in the interview process. By the 2nd or 3rd interview, you and the employer will likely be clear on what you’re seeking. Rather than a salary range, they might make you an offer or ask you for a precise number. Whether or not you like the offer, be prepared to negotiate and hold off before accepting immediately. Once you’ve settled on a number, ask for the offer in writing. If they ask you for an exact number say something like, “This position sounds like such a great fit, given my experience leading a similar team at my last job. I know we’ve discussed a salary range, and I’d like to suggest $52,000 as a starting salary, given my experience.” If they make you an offer, say something like, “Thank you for the offer. I’d like to take a day or two to think it over and I’ll get back to you.” Not every company will ask you to name your exact ideal salary. For instance, if you’re working for public service or a university, they may have strict and transparent salary ranges, though you can still make your case to start at the upper band of the salary scale.
Avoid the classic pitfalls in salary negotiation. During a salary negotiation, it's bad form to talk about what you “need” from your employer. Likewise, steer clear of language that makes it sound like you think you’re better than the company. Instead, express your enthusiasm in the position, your willingness to be flexible, and your gratitude for the opportunity. Don't use language like, “I need this amount of money to pay off my student loans” or “I know I can get this much at another company.” Do thank the interviewer and end your response with something like, “I’m really excited about this position, I’m open to further discussion around a fair salary.”
How to Negotiate a Salary if You’re Unprepared
Ask the employer what they expect. It happens—sometimes an interviewer might ask you a salary question out of the blue. The best thing to do in this situation is to flip the question back to the employer and make them give you a number. Asking for the company’s salary range is a completely fair question. “That’s a great question. For someone with my experience, what’s the typical range for this role?”
Take your current level of pay and add what you think is a fair raise. If you’re pressed to give an exact answer, take your current salary and add a rounded-off number. Keep in mind raises are typically 3-4% per year. Then, if you’d like a safety net for negotiation, aim 10% higher than that salary number plus your “raise.” For instance, if you make $50,000, a 3% raise would give you $51,500. Then, you’d ask for 10% higher, which would be $56,650. Round your answers to simplify your request. You could say something like, “I’m open to discussing compensation, but I’m ideally looking for a position with a salary between $52,000 and $57,000."
Say that you need time to think about fair compensation. It’s okay to stall if you don’t have enough info about the job, especially if you’ve just started talking to the recruiter. However, if you’re further along in the interview process, stalling could be viewed as playing games or a lack of serious interest. If you have to stall, here’s how to do it: “I have flexible salary requirements, but I do have extensive experience in this industry and a unique skillset that I know would add value. I’d like to learn more about the position and its responsibilities, and then I’d feel comfortable discussing salary expectations.”
What to Do if You Get a Lowball Offer
Make a counter-offer and ask them to be flexible. Explain again what you were hoping for and state that it’s not possible for you to work for less than the range you gave. Ask if there’s flexibility in the budget or perks on top of the salary. Even if they can’t change the cash value of the starting salary, they might be able to throw in extra time off, a better signing bonus, or company stock. “I hear what you’re saying about the benefits package, but after researching the going rate for someone with my qualifications, I really can’t take a position for less than $45,000 a year. Is there any flexibility in the budget?” “Ideally, I’m looking for a position in the range of $41,000-$45,000. But I’m open to negotiating based on the total compensation package. Is there any wiggle room in terms of company stock options?”
Be willing to walk away. If the company can’t compromise to reach your lowest cut-off point, then it should be a deal-breaker. Working for less than you’re worth can result in financial setbacks. During your time with the company, you’ll earn less, receive smaller raises and bonuses, and your future starting salaries at other companies could even be lower. “Thank you so much for the chance to interview for this position. I’ve decided to pursue other opportunities right now, but I’m sincerely grateful for your time and consideration.” “I’m very grateful for your consideration, but I'm going to have to decline the offer. I’m still incredibly passionate about the work your company does, so I hope we’ll get to talk again further down the line.”
Why Interviewers Ask About Salary Expectations
Companies like to see whether your expectations for the role’s compensation line up with what they had in mind. After all, they’re following a budget and don’t want to waste your time or theirs during a lengthy interview process if your salary expectations don’t match. Salary discussions can come up before, during, or after a job interview. Remember, it’s not all about the employer. Discussing salary expectations gives you the chance to make sure the job will cover your expenses and support the standard of living you want. Salary expectations can also come up if you’re seeking a raise or promotion at your current company.
Why It’s So Important to Get This Question Right
Providing reasonable salary expectations tells employers you’re a good fit. Giving a strong response to this question is all about doing prior research and presenting your skills effectively—we'll show you how to do both later in this article. A poor response can lead to two main outcomes: Undervaluing your worth can lead the employer to assume you’re too junior for the role, you’re unwilling to take on responsibilities, or you don’t take yourself seriously enough. If you get the job but negotiate for too low a salary, you might even struggle to make ends meet. Overvaluing your worth might lead the employer to feel like you’re out of their budget or too senior for a role. In the worst-case scenario, it could lead an employer to assume you think too highly of yourself or have unrealistic expectations.
How to Research Salaries and Find Out What You’re Worth
Use job-hunting sites to find average salaries for the role. Researching average salaries across your industry helps you go into the salary discussion prepared. Search the job title of the role you want online along with your geographical area (as salaries vary due to differences in cost of living between locations). Then, narrow down the information you find to include roles that match your years of work experience and education. Sites like Glassdoor.com and Salary.com can all give you a preview of average salaries for a given role. Sites like LinkedIn.com and Indeed.com might be able to give you a salary range for active job postings. Keep in mind, these estimates give you a market range and won’t reflect entire salary packages (which includes things like vacation time, healthcare, retirement savings plans, etc.).
Reach out to people in your network to gain additional perspective. It may feel awkward to talk about money, but openly discussing salaries can fight pay inequity and give you a ballpark estimate of what you can expect to earn. Reach out to mentors, coworkers, and other people in your industry and ask, “What salary would you recommend I ask for?” You can even contact people you don’t know well. Here’s how to open that conversation: For someone you know: “Hi, can I get your opinion on something? I know money’s a tricky topic, but I’m interviewing for a new position and want to make sure my salary expectations sound right. Do you have a rough idea of what I should ask for?” For someone you don’t know well: “Hi—I’m Hamza, and I see we’re both in the cloud storage business. Would you mind if I asked for some career advice? I’m interviewing for a PM role with a new company and want to make sure my salary expectations are on target, given that I was underpaid at my last job. How much would you expect a company like Cloud Cave Data to pay for someone with my experience?” Asking about salaries doesn’t have to be awkward. In fact, a survey showed 27% of people would respond if a job candidate asked them about their salary.
Plan to ask for at least 4% more than your current salary. Think of your current salary as a base to build from—in any new position, you should get a pay increase. On average, people who stay at their job receive a 3% raise over 12-months while people who switch jobs can expect to get a 4.6% bump. Take your current annual salary and multiply it by 1.04 to determine a good starting point for thinking about potential salary at a new company. Remember there are non-monetary forms of compensation in a salary package (like paid vacation, childcare, a flexible work schedule, stock options, and relocation comp). If an employer won’t increase your starting salary, they might be able to boost other forms of compensation. You can typically see the list of additional perks and benefits in the job posting.
Review your existing budget to determine a comfortable salary. Looking at your current cost of living can help you stay realistic about your salary—a job won’t be the right fit if it can’t pay your bills, but you might not need a huge salary bump, either. Consider your rent/mortgage, expenses like car ownership, school fees, and the cost of daily living. If you’ll have to relocate, search online for “cost of living calculator” to find percentage price comparisons between geographic areas.
Ask yourself what you bring to the role. Look over your level of industry experience, qualifications, special skills, and any additional certifications. If you have strong performance metrics or big accomplishments from your previous job, those can help you secure a higher salary. Keep a record of your work and achievements that you can reference in your interview. For instance, if you can say something like, “I created a new workflow for processing customer invoices that led to 10% savings in my department,” you’ll be in a better position to negotiate.
Comments
0 comment