How to Answer “What Are Your Salary Expectations?”
Learn strategies to confidently answer the dreaded "What are your salary expectations?" question in job interviews. Discover how to research, prepare, and negotiate for the compensation you deserve.
"So, what are your salary expectations?"
It's a question that can catch even the most prepared job seeker off guard. Your heart races, your palms sweat, and suddenly every salary figure you've ever heard flies out of your head. You don't want to throw out a number that's too low and sell yourself short, or go too high and risk knocking yourself out of the running for the role.
But answering the salary expectation question doesn't have to feel like a high-stakes game of poker. With thoughtful preparation and a dose of confidence, you can navigate this tricky terrain and come out with a job offer and compensation package that recognizes your true value.
Why Do Employers Ask 'What Are Your Salary Expectations?'
Before we discuss how to response, let's talk about why employers and recruiters ask about salary expectations in the first place.
1. To screen out candidates who are out of budget
On a practical level, getting a sense of your salary expectations helps recruiters and hiring managers screen out candidates whose needs don't align with what they can offer. If they have a tight salary band determined for the role, they may not want to waste time pursuing candidates whose expectations far exceed that range.
2. To gauge your industry knowledge and self-awareness
How you answer the question provides insight into how well you understand your market value and the going rate for your skill set in the industry and company. If your expectations are significantly above or below the typical range, it may suggest that you are out of touch or have mis-calibrated perceptions of the role's level of responsibility.
3. To see if you've done your research
Responding with a thoughtful, appropriate salary range shows that you've done your due diligence to understand the market and the value you bring to the table. Employers want to see that you're a prepared, proactive candidate who knows your worth and can communicate it persuasively.
4. To open the door to negotiate
In some cases, employers use the question as a preliminary way to get salary discussions on the table, with the goal of understanding if you're on the same page and determining if they'll be able to come to an agreement that satisfies both parties.
Understanding these key motivations can help you craft a response that satisfies the employer's underlying questions and positions you as a knowledgeable, astute candidate. In the next section, we'll look at how to do the essential prep work to formulate your salary range and response.
Researching Before Answering 'What Are Your Salary Expectations?'
Doing your homework to understand the market rate for your role and experience level is key to crafting a response that positions you as an informed, astute candidate.
Salary benchmarking resources
Start by exploring salary benchmarking websites to get a data-driven understanding of the typical compensation for professionals in your field, role, and geographic location. Some robust resources include:
Glassdoor Salaries: Offers crowd-sourced salary and bonus data for specific companies and job titles.
PayScale: Provides free salary reports based on job title, location, education, and experience.
Salary.com: Features comprehensive salary data for a wide range of roles and industries.
Industry-specific salary surveys from professional associations or trade publications in your field.
The best way to get the lowdown on a job's salary range? Check out this article: "Unlocking the Salary Secret: Comprehensive Guide to Understanding a Job's Salary Range."
Gather data from multiple sources to get a well-rounded view of the salary landscape for your role.
Factor in company-specific considerations
In addition to broader market data, consider factors specific to the company you're interviewing with, such as:
Company size and stage: Salaries may be lower at early-stage startups than at large, established corporations.
Industry: Pay scales can vary significantly across different industries, even for similar roles.
Location: Cost of living and average salaries differ between cities and regions.
Compensation philosophy: Some companies pride themselves on paying top-of-market salaries, while others may offer more equity or prioritize other perks.
Seek out any insider intel you can gather from your network, Glassdoor reviews, or public information like the company's careers page or annual reports to get a sense of their compensation approach.
Determine your personal salary range
Armed with market data and company research, determine the salary range you'll quote in the interview. A helpful formula is to select your ideal (yet realistic) salary as the midpoint, then add and subtract 10-20% to set your low and high ends.
For example, if your market research suggests that $80,000 is a fair salary for your skills and level, your range could be $72,000 to $88,000.
Keep in mind that this range should be a starting point for negotiation, not your absolute bottom line. You can always negotiate up, but it's much harder to negotiate down if you quote a range that's too high.
Don't forget benefits
Remember, your compensation is more than just base salary. Factor in other key elements of the benefits package that matter most to you, like:
Health insurance and retirement plans
Paid time off and parental leave
Stock options or equity grants
Bonuses or performance-based pay
Professional development and education stipends
Flexible schedule or work-from-home options
Be prepared to evaluate the whole package, not just the base salary, and decide what trade-offs or concessions you're willing to make. Maybe a slightly lower salary with great health benefits is worth it for your situation, or perhaps a higher bonus with less equity aligns with your financial goals.
The research stage is all about arming yourself with data and clarity around your priorities so you can approach the salary expectation question with cool-headed confidence. In the next section, we'll explore how to articulate your response in a clear yet flexible way.
How to Answer 'What Are Your Salary Expectations?' with Confidence
Now that you've done your research and determined your target range, let's explore some approaches to articulating your salary expectations in the interview. The key is to be confident yet collaborative - you want to advocate for your worthwhile leaving room for discussion.
1. Defer the question
If the salary question comes up early in the process, it's perfectly acceptable to defer the discussion until you have more information. You might say something like:
"I'd love to learn more about the role's responsibilities and goals before discussing salary, so I can provide a more informed answer. What are the key priorities for this position in the first year?"
This shows you're thoughtful and focused on finding the right fit, not just the highest paycheck.
2. Provide a researched range
If pressed for a number, share the salary range you determined during your research phase.
"Based on my skills, experience, and market research, I'm currently seeking a salary in the $X to $Y range. However, I'm open to discussion based on the specific responsibilities and total compensation package."
Giving a range, rather than a single figure, opens the door to negotiation and shows flexibility.
3. Emphasize value
Use the question as an opportunity to reiterate your key selling points and the value you'll bring to the role.
"While salary is important, I'm most focused on finding a position where I can apply my expertise in A, B, and C to make a real impact. In my last role, I [insert key achievement] which generated [insert value added], and I'm excited to bring that same drive to contribute to your team's goals of X, Y, and Z. Based on my research and experience, I believe a salary between $X and $Y aligns with the role's scope and the value I can provide."
Putting the emphasis on your skills and potential impact shows that you're motivated by more than just money.
4. Frame as a conversation
Ultimately, you want to approach the salary discussion as a two-way conversation, not a one-sided declaration.
"I look forward to discussing compensation in more detail once we determine there's a strong mutual fit. For now, I'm focused on learning more about the role and how I can contribute to your team's success. Based on my initial research, I believe a range of $X to $Y aligns with market rates for similar positions, but I'm open to your perspective and learning more about your compensation philosophy."
Framing it as a dialogue signals that you're open to collaboration and finding a mutually beneficial outcome.
Dos and Don'ts When Answering 'What Are Your Salary Expectations?
When it comes to discussing salary expectations in an interview, there are some key best practices to keep in mind:
Do:
Give a range, not a single number. Providing a salary range gives you more flexibility and room to negotiate.
Back up your range with research. Be prepared to explain how you arrived at your range based on market data, your skills, and the role's requirements.
Consider the whole compensation package. Base salary is just one piece of the puzzle. Think about benefits, bonuses, equity, and other perks that matter to you.
Express enthusiasm for the role and company. Reiterate your excitement for the opportunity and how you can contribute, not just what you want to earn.
Be confident and polite. Discussing salary can be uncomfortable, but it's a normal part of the hiring process. Be assertive yet respectful in your delivery.
Don't:
Don't sell yourself short. Don't lowball your range just to seem agreeable or out of fear of losing the opportunity.
Don't inflate your expectations. Likewise, don't ask for a wildly unrealistic salary that prices you out of consideration.
Don't make it only about money. While compensation is important, avoid seeming like you only care about the paycheck.
Don't be apologetic. There's no need to say "sorry" for having salary expectations or advocating for your worth.
Don't get defensive. If the employer pushes back on your range, don't get argumentative or confrontational. Approach it as a conversation, not a fight.
Don't say this: "My minimum is!"
Remember, the goal is to have an honest, productive discussion about compensation that leads to a mutually beneficial outcome. Approach the conversation with a balance of confidence and collaboration.
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How do you answer, “What is your current salary?”
Remember, in lots of places, you don't have to answer that question, and it's even illegal to ask. My advice? Don't even go there. Just because you're aiming for a salary that's 20% more than what you're currently making at company X doesn't mean you're greedy. It could just mean you're not being paid what you're worth.
Navigating the salary expectations question can feel like walking a tightrope - you want to advocate for your worth and earn what you deserve, but you also don't want to price yourself out of an opportunity or appear only motivated by money. By approaching the conversation with preparation, confidence, and a collaborative spirit, you can strike the right balance and reach a mutually beneficial outcome.
Discussing salary is a normal and expected part of the hiring process. It's not about being greedy or confrontational - it's about having an honest dialogue about the value you bring to the table and ensuring you're fairly compensated for your contributions.
Don't be afraid to advocate for what you deserve, but always do so with professionalism, tact, and an eye toward building a mutually beneficial relationship with your employer.
Negotiating After Answering 'What Are Your Salary Expectations?
Salary negotiations can be challenging, especially when faced with pushback from potential employers. It's essential to approach these discussions thoughtfully and confidently.
In this exclusive part, we’ll explore effective strategies to handle counteroffers, articulate your value, and find creative solutions that align with your expectations: