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What to Answer “What Are Your Salary Expectations?”

  • Amruta Bhaskar
  • May 28, 2021
  • 0 comment(s)
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While it’s important to prepare yourself for skill, behavioural, and talent-related interview questions through practice, hiring an interview coach, or participating in the tutorials and interviewing training program offered by Big Interview, it’s equally important to get ready for the money question that is sure to surface at some point during the interviewing process.

Answering “what are your salary expectations?” the wrong way can cost you a job offer. It can also put you in an untenable situation by forcing you to consider a job at a less-than-desirable salary.  After all, in some circumstances, the only thing worse than failing to get a job offer after an interview is failing to get an offer that’s sufficient to support you and/or your family.

Not only is it hard for many people to talk about money, but the wrong answer can instantly knock you out of the running or lock you into earning less than you deserve.

“Salary inquiries are often loaded questions because of the implications, they could spell for both the job seeker and the employer,” says former human resources professional Jennifer Lee Magas, clinical associate professor of public relations at Pace University. “While not all first interviews will ask about salary, money is going to come up at some point.”

According to Monster's 2020 State of the Candidate survey of 1,000 full-time and part-time employees in the United States, 73% of respondents said salary is the most important factor when considering a job offer, with 58% of candidates saying they have turned down an offer because the salary was too low. The top reason employees started their last job search? You guessed it: They wanted a higher salary (40%).

Why employers ask about salary expectations

When an employer asks about your salary expectations, it’s usually for three reasons:

  • They have a budget. The interviewer wants to make sure your compensation expectations align with the amount they’ve calculated for the job. If they find most candidates are asking for a great deal more than anticipated, it might mean requesting a larger budget for the position.
  •  They want to gauge how well you know your worth. A good candidate knows how much their skillset is worth in the market and can share it with confidence. To determine appropriate market value, factor in your level, years of experience and career achievements.
  • They want to determine whether you’re at the appropriate professional level. An applicant who asks for a significantly higher amount than other candidates may be too senior for the role. Alternatively, answering with a salary expectation on the low end could indicate you’re at a lower experience level than the job requires.

Your answer to this question can be the beginning of the salary negotiation process. As a result, you want to make sure you’re providing a well-researched response.

Here are several guidelines that can help you steer the conversation:

1. Know your worth

Each job has a general market value. You can learn the compensation range for your job on Indeed Salaries, where you can search by job title and location to narrow in on current compensation rates in your field.

Before you share your salary expectations with an employer, think holistically about what you’re earning presently, including salary, bonuses and benefits. Then, use the research you’ve done to set a realistic target for what kind of compensation you want in your next job. What base salary are you looking for? Which benefits do you value the most? What other perks interest you?

If you’re changing career tracks or interviewing for a job at a company that’s structured differently from your last employer, you should be able to articulate what you’re gaining or losing in terms of compensation.

2. You don’t have to answer salary questions right away

The requirements of a job as well as the other kinds of compensation an employer offers, like benefits, equity and bonuses, are important to take into consideration. When you are first asked, “What are your salary expectations?” it’s ok to delay answering. Here are some responses that can help you continue the conversation and get more information:

Example 1- “I’m looking for a competitive offer that includes benefits and other kinds of compensation, but I’d like to know more about the specifics of what this job requires first." (This answer is good for most situations.)

Example 2- “Over the course of my career, I’ve worked in several different areas, across different levels. I’d like to learn more about what this role entails as well as the benefits and other forms of compensation you offer."

When a recruiter or hiring manager asks, “What are your salary expectations?” there are a few ways you can answer. Here are some suggestions, with example responses:

  • Provide a range: If you don’t feel comfortable providing a single number, you may choose to offer a range instead. Keep in mind, however, that the employer may opt for the lower end of your range, so make sure your target number is as close to the bottom number as possible. Also, keep your range somewhat tight with a variance of no more than $5,000 to $10,000.

Example: “I am seeking a position that pays between $75,000 and $80,000 annually.”

  • Include negotiation options: In addition to your salary, there may be other benefits, perks or forms of compensation you consider just as valuable. Including these as possible opportunities for negotiation is an option, too. For example, while the employer may not have budgeted enough for your ideal salary range, they may be willing to offer equity in the company to make the compensation package more attractive to you.

Example: “I am seeking a position that pays between $75,000 and $80,000 annually, but I am open to negotiate salary depending on benefits, bonuses, equity, stock options and other opportunities.”

  • Deflect the question: If you’re still early in the hiring process and still learning the specifics about the job duties and expectations, you may want to deflect the question for later in the conversation. However, keep in mind you’ll still eventually have to discuss salary expectations. Either way, it’s a good idea to be prepared with a well-researched number in mind—even if you’re still factoring in additional information.

Example: “Before I answer, I’d like to ask a few more questions to get a better idea of what the position entails. That way, I can provide a more realistic expectation.”

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