Learning how to answer ‘salary expectation’ in an interview will give you an edge over other candidates. Whether freshers or experienced professionals, you must know the best answer for ‘salary expectation’ in a job interview.
Sometimes, when writing a job application letter, you need to put your salary expectations. Sometimes, interviewers might decide to send you an email to clearly state your salary expectations. In answering this vital, you might decide to give them the history of your past and current salaries.
How I Answered ‘Salary Expectation’ Interview Question
I learned it the hard way. My first salary in Germany was below market level. When I got an offer from Amazon, it was more than a 70% jump in Germany.
Where you stand:
Let’s assume you are interviewing for a marketing position, with 4 years of experience. Your current salary is, say, €36,000 per annum. Your personal expectation is to land somewhere between €40,000 to €43,000 salary, with the new job.
The salary question in the initial rounds does not matter much. Provide a generic “market standards” response for the initial round. Like dating, this is the time, you and the company are testing each other. It does not make sense to share a committed number/range when both sides are not even sure that things will go forward.
So, when do you think you should say your actual salary expectation? Read on…
Where the company stands:
The company has an unfair advantage over you when discussing salary. There is a very clear range of budget allocated for each opening. In this case, let’s say the salary range that the company is working with is €43,000 to €46,000.
Observe:
The higher range of your expectations < The lower range of the salary budget?
(There can be multiple reasons for this: the market is competitive, they are in urgent need, you are paid below market n 100’s of other reasons… but that is not the focus of this answer).
This is why never disclose your salary number to HR, no matter how much they ask. It’s their job to ask, so they can find the best yet cheapest candidates.
State your salary expectation NOW: Once you are one of the final candidates, and close to the finish line, get a feel of their range. Ask them probing questions. Let them put their cards on the table. Only after that, start to show your value.
This is the only time you hold the leverage as a candidate in the whole process. There is a high probability of an offer, they have spent too much time with you, and you (hopefully) have understood how desperate they are to hire…. this is the time to state your salary expectations.
This is a play on basic human psychology: the longer you hold out disclosing, the more valuable you make yourself seem (assuming that you have the technical and professional requirements for the stated opening).
If you would like to discuss something about your career, I recommend you read How to Choose a Career Path for Teenagers, Students & Employees
Strategic Phrasing For ‘Salary Expectation’ Discussions
Start by expressing your enthusiasm for the role and the company. This sets a positive tone and shows that you are genuinely interested in the opportunity beyond just the compensation.
One effective approach is to turn the question back to the interviewer by asking about the salary range for the position. This can provide you with a benchmark and demonstrate that you are open to negotiation. For example, you might say, ‘I’m very excited about this opportunity and believe I can bring significant value to your team. Could you share the salary range for this position?’
If the interviewer insists on a specific number, it’s beneficial to provide a range rather than a single figure. This allows for flexibility and shows that you are open to negotiation. Ensure that your range is based on thorough research of industry standards, your experience, and the cost of living in the job’s location. You could phrase it as, ‘Based on my research and understanding of the industry, I’m looking for a salary in the range of $X to $Y.’
It’s also helpful to emphasize your willingness to discuss the entire compensation package, which may include benefits, bonuses, and other perks. This shows that you understand the value of the total package, not just the base salary. You might say, ‘I’m open to discussing the overall compensation package, including benefits and other perks, to ensure it’s a mutually beneficial arrangement.’
Lastly, always convey your flexibility and willingness to negotiate. This can be done by stating, ‘I’m confident we can find a number that works for both of us,’ or ‘I’m open to discussing this further to find a suitable agreement.’ This approach keeps the conversation positive and collaborative.
Responding When Pressed For A Number
Conduct thorough research on the industry standards for the position you’re applying for. Websites like Glassdoor, Payscale, and LinkedIn Salary Insights can provide valuable data on the typical salary range for similar roles in your geographic area.
Once you have a well-informed understanding of the salary range, consider your own qualifications, experience, and the value you bring to the company. This self-assessment will help you determine a realistic and competitive salary expectation.
It’s often beneficial to provide a range rather than a fixed number. For example, you might say, ‘Based on my research and experience, I am looking for a salary in the range of $60,000 to $70,000.’ This shows that you are informed and flexible.
If you are uncomfortable providing a specific number or range, you can redirect the conversation back to the interviewer. You might say, ‘I am open to discussing a fair salary based on the responsibilities of the role and the overall compensation package. Could you share the budgeted salary range for this position?’ This approach demonstrates your willingness to negotiate and your interest in understanding the company’s perspective.
Another strategy is to emphasize your interest in the role and the company, highlighting that salary is just one component of your decision-making process. You could say, ‘While salary is important, I am more interested in finding a role that is a great fit for my skills and career goals. I am confident that we can come to a mutually beneficial agreement on compensation.’ This response shows that you are focused on the bigger picture and not solely driven by salary.
You can say something like, ‘I’m very excited about this opportunity and I’m sure we can agree on a salary that reflects my skills and experience.’ This response shows that you are interested in the job itself and not just the paycheck
Using The ‘Current Salary’ Tactic
This method involves disclosing your current salary to set a baseline for negotiations. However, you must understand the potential benefits and drawbacks of this tactic.
One advantage of using the ‘Current Salary’ tactic is that it provides a concrete figure that can help anchor the negotiation. If your current salary is competitive, it can serve as a strong starting point to justify a higher offer. For example, you might say, ‘Currently, I am earning $X, and given my skills and experience, I am looking for an increase to reflect my growth and the value I can bring to your company.’
On the other hand, there are risks associated with this approach. Disclosing your current salary can sometimes limit your negotiating power, especially if your current salary is below the market rate for the position you’re applying for. Employers might base their offer on your current salary rather than the value of the role you’re applying for, potentially resulting in a lower offer than you deserve.
To mitigate this risk, it’s very important you conduct thorough research on the market rate for the position you’re applying for. Websites like Glassdoor, Payscale, and industry-specific salary surveys can provide valuable insights. Armed with this information, you can confidently state your salary expectations based on market data rather than solely relying on your current salary.
It’s also important to consider the timing of when to disclose your current salary. If possible, try to delay this discussion until you have a better understanding of the role and the company’s expectations. This can give you more leverage and allow you to tailor your response based on the specific context of the job offer.
Ultimately, the ‘Current Salary’ tactic can be effective if used wisely. By combining it with market research, framing it within the context of your total compensation, and timing the disclosure appropriately, you can maximize your chances of securing a fair and competitive salary offer.
Common Mistakes To Avoid
Don’t Call a Specific Amount
One common mistake is stating a specific salary amount too early in the interview process. This can limit your negotiating power and may either price you out of the job or leave money on the table. It’s often better to wait until you have a full understanding of the role and its responsibilities before discussing specific numbers.
Not Doing Sufficient Research
Not doing enough research on industry standards and the typical salary range for the position you are applying for is a great mistake. Without this information, you may either undervalue yourself or ask for an unrealistic amount, both of which can negatively impact your chances of securing the job.
Being too Vague
Being too vague or saying ‘I’m open to anything’ can also be detrimental. While flexibility is important, not providing any guidance can make you appear unprepared or indifferent. It’s better to give a well-researched range that reflects your skills and experience.
Failing to consider the entire Compensation Package
Failing to consider the entire compensation package is another pitfall. Salary is just one component of your total compensation. Benefits such as health insurance, retirement plans, bonuses, and work-life balance should also be factored into your expectations.
Don’t make Conversation about Financial Needs
Avoid making the conversation about your personal financial needs. Employers are more interested in what you bring to the table rather than your personal expenses. Focus on your skills, experience, and the value you can add to the company.
Not Being Prepared to Justify Salary Expectations
Another error is not being prepared to justify your salary expectations. If you state a number or range, be ready to explain how you arrived at that figure based on your research, experience, and the value you bring to the role.
Don’t be Confrontational
Avoid being confrontational or defensive when discussing salary. This can create a negative impression and hurt your chances of getting the job. Approach the topic professionally and be open to negotiation.
