"What are your salary expectations?" Not exactly anyone's favorite question. But by upping your salary negotiation skills, you've got the answer on lockdown.
The salary question is stressful. You know this common interview question it’s going to come up at some point during the interview and offer process, but when? This can add an element of anxiety to an already difficult process.
Do yourself a favor and have a solid strategy in place before the interview to make sure that you maintain a good relationship with your potential employer and that you set yourself up well for a salary negotiation once you have the offer in hand.
Why Are You Being Asked This Question?
The interview process can take weeks and the last thing you or the recruiter want is to get to the end of a long process and find that you're very far away on salary.
If the company has budgeted $50,000 for this role but you know you're not going to leave your current job for anything less than $80,000 then it's not a match—and probably not worth your time to continue the interview process because they can't afford you.
They also like to ask this question to see if you've done your research—and can back it up. It's a quick glimpse into how you prep for a negotiation and how you manage the back-and-forth. If you're super timid and say "I'll accept anything," then you're leaving a less-than confident impression.
Knowing your worth and market value are important, but so are having the skills to ask for it. It's all part of the overall interview process.
4 Steps to Determine Your Desired Salary
The biggest mistake you can make is to go into an interview without arming yourself with the relevant salary information. This includes learning the basics about the role, the industry, and the company.
Most hiring managers and recruiters rely on a compensation team or compensation analyst within HR to do heavy analysis on salary before they decide on a role for a position or make any job offers. Although the number may seem random to you, it most definitely is not and, in most cases, serious analysis has gone into developing the number.
According to David Buckmaster, Nike's Global Compensation Director and author of Fair Pay, some of the things that are taken into account when determining a salary range for a new role are the cost of labor, cost of living, and industry market rates.
Given that they have the benefit of in-depth analysis, you need to do the same thing to level the playing field. There are three ways that most compensation professionals will benchmark a salary: the external market for a similar role, the market within an industry (e.g., Financial Services), and your worth on the open market among other job candidates.
Since you never want to discuss salary expectation questions without doing marketing research first, where do you start with your preparation? Here are three steps to follow.
1. Conduct a Salary Comparison for a Specific Role
There are many good resources readily available on the Internet that will help you determine the salary range for a specific role. Salary.com is a good place to start and we love Glassdoor's salary calculator.
Look at the range, and take into consideration your years of experience and location to make sure you are using the most relevant comparisons. We're also pretty partial to our own resource, The Salary Project™—where you can access thousands of real salaries to help determine the correct salary for your role, experience, and geo.
2. Consider Industry Salary Standards
Next, think about your industry. If you are in Financial Services or Investment Banking, it is likely that you should ask for closer to the top of the range. However, if you were applying for a job at a non-profit, you would be better off targeting a salary slightly below the median.
3. (Honestly) Evaluate Your Own Career Experience and Skills
The third component of the analysis is the most important one—you! What could you command in a similar role somewhere else, and what can you uniquely bring to the table that will set you apart? For example, if you speak a foreign language that would be useful for the role or if you have prestigious degrees that would command value wherever you go, those may help you to get closer to the top of the range.
How to Answer "What Are Your Salary Expectations" In a Job Interview
So before you go into your first interview, you've done your research and you've been able to come up with at least a range and you know your must-have, nice-to-have, and walk-away number.
This means you have a very thorough idea of what you can and should accept for the role and even better you can back up your answer with data.
But our advice for how to answer this tricky interview question doesn't end there. Here are three strategies to consider before you answer.
Defer Sharing Your Salary As Long As Possible
Now that you know your facts, the salary question should be a little less intimidating, but that doesn’t mean you want to jump into it right away.
If you are asked what you currently make (btw this is an illegal question in most states!) or what you would like to make during the interview process, try to defer the question. Either way, you’d prefer to wait until you know more about the role.
You can say something cooperative but firm such as, “I am very interested in this job, and I’m sure we can agree on a salary once we have both determined that there is a good fit here.”
Putting the salary conversation off until later in the process will give you more leverage for negotiation, and it will also allow you enough time to gather all the information about the role and company you need to determine what you think a fair salary would be.
Ask For a Salary Range
Get Them to Talk First
If you can’t seem to get the recruiter or hiring manager off the topic of salary, the next best strategy is to get them to name their range first. Almost all companies identify a salary range for each role, and usually, the hiring manager has some leeway to go to the top of the range (or even slightly above) if they find the perfect candidate.
You can say something like, "I'm really interested in the role and once I'd learned more specifics about the job, I can share the range I'd expect for this role, however, it would be helpful to hear what range you have budgeted to make sure we're not too far apart right now."
Don't Tell Them Your Current Salary (If Humanly Possible)
Most recruiters will share the range when asked. All you have to do when you get them to share is to confirm for them that the range is something you can work with. This is particularly useful if you are making a career change where you are taking a pay cut.
Telling the recruiter your current salary may scare her off if you are making much more than she can offer. Asking for a range and confirming it is acceptable is a great way to assuage those fears and give her confidence that you are seriously interested in the role.
Offer a Bolstering Range
If all else fails and you have to give a number, give your own range instead of a number (two can play this game!). Studies have shown that offering a “bolstering range” is the most effective way to initiate a salary negotiation. So if you are hoping for an $80,000 salary, say you would be happy with a salary between $85,000-90,000.
Giving a range is more cooperative because it opens up room for a conversation, and starting with your target at the low end means that you are more likely to negotiate successfully and reach your salary goals.
Example Answers for Sharing Your Salary Expectations
We know talking about money is nerve-racking. And we know not talking about money is not beneficial to your career either. Here are few ways to answer questions about salary but remember to tailor these to what you're comfortable with—and always practice saying it out loud before you're talking to a recruiter. Just hearing yourself say this out loud will give you a confidence boost!
Example Answer #1: Deferring your answer
"Thanks for asking. I'm really interested in the role and once I've learned more specifics about the job, I can share the range I'd expect for this role, however, it would be helpful to hear what range you have budgeted to make sure we're not too far apart right now."
Example Answer #2: Showcasing your experience
"I do have a salary range in mind that I've determined based on research and taking into account my 10+ years of PR experience. I believe my experience level, qualifications, and multiple PR awards add value to my candidacy, however, I'd like to wait to share my range till I learn more about the responsibilities and expectations of this role. I have no doubt if this is fit that we can determine a fair salary number and feel free to share what you have budgeted for the role."
Example Answer #3: Asking for more
"I'd love to revisit salary expectations. I respect the salary range you shared with me earlier and understand that you are working within a budget, however, I'd like you to consider $XX as the starting salary. After learning more, the responsibilities of this role are quite demanding as you and the other interviewers have mentioned. I'm confident I have all the necessary skills and can deliver the results you said you’re looking for, but I can't do that at the current salary you've shared."
Example Answer #4: Minding the pay gap
"You know I think a lot of women, especially, sell themselves short by sharing their past salary. What I'm looking for in compensation is to be paid at a level commensurate with the responsibilities of the role, that is on par with my peers and competitors in the marketplace. I also understand that compensation is more than just salary, so, I'm looking at the total compensation package."
Bonus: this script came directly from our podcast interview with Pamela Neferkara and Patty Ross. We highly recommend listening to this as well!
In Conclusion
These tips probably won’t totally relieve the stress of one of the most dreaded interview questions of all time, but being prepared and informed will help you initiate a good conversation while maintaining a good relationship with your potential employer (And hopefully help you get the salary you deserve!)
