Top Interview Questions - 6. What are your salary expectations?

It’s true that you can look on websites to figure out the going range for a job, but you can never guess how much the organisation values the position for which they are interviewing you.

This one can easily catch most interviewees out. It might perhaps be the most dreaded question you have faced in an interview process. Bid too high, and you could cut yourself out of the running entirely; bid too low, and you’ll cost yourself thousands – perhaps hundreds of thousands – of dollars over the course of your career.

At the start of my career I was advised not to give the first number because if one requests a salary lower than the range for the position, the interviewer will say nothing, and one would have just lost money. I was advised to request the interviewer to tell me the range for the position, because then I could focus on getting to the high end of the range. Nowadays most job advertisements contain the salary range. So you can prepare yourself for this question beforehand. 

Negotiating an acceptable salary can be a battle in itself. When there are two good negotiators in the room, each person will try to get the other to give the first number. Each time you deflect the question, the interviewer will try again. Your goal is to outlast the interviewer until they finally tell you the salary range for the job. 

So what’s the right answer?

1. Don’t answer.
There are ways to get around this question, if you really don’t want to give a number right off the bat. One good tactic is to say that you want to learn more about the job first, before you think about the salary that would go with it. You can say “Let’s talk about the job requirements and expectations first, so I can get a sense of what you need.” That’s a soft answer to a soft way to ask the question.

You can tell the panel you are interested in finding a job that is a good fit for you. Maybe you can add "I'm sure whatever salary you’re paying is consistent with the rest of the market.” In other words, I respect myself and I want to think I can respect this organisation.

One downside to this is that many employers will want to know what your salary expectations are right up front, before they’ll even consider your application. In fact, many online applications won’t even let you apply if you don’t include a number.

2. Give a range.
If that’s the case, research the job title and give a salary range. There might be websites that let you look up salaries by job title, location, and years of experience. Use these resources as part of your preparation for the interview. If you have applied for a role that already has a salary bracket - have a think about what exact figure you will mention if asked. I always go for the upper end of the bracket specified in the job description.

It is also very important that you name a lower number that you’d be comfortable with, since that’s probably where the hiring manager will start your offer. I always provide a lower end value to show am flexible. This provides the prospective employer with a favourable impression that I am open to negotiating the salary. 

Once you’re negotiating, remember to include benefits in your salary calculation. For example, if the prospective employer offers better health insurance that would save you money in the long run, that’s worth money. Never forget to mention superannuation expectations. 

3. If necessary, give one number.
Can’t name a range? I would advise you to be conservative, and prepare to negotiate.

If you can’t give a range and have to provide a single salary, choose the middle of your range, maybe even a little bit lower. You’d rather be lower than their target rate than over it.

Just remember that naming a rate doesn’t lock you into accepting it. At the vast majority of organisations, one can still negotiate after getting an offer. In fact, negotiating for a bit more might work in your favor, since prospective employers will see that you believe in yourself and have done enough research to know the value of your work. 

If you are asking for more than you have been offered, be sure to explain the reason. It helps seal the deal since your prospective employer will realise you know your worth. When I was offered a role once, I asked for a higher salary than what was offered. I explained my existing role had the same salary as what had been offered and I would like to better it. I also asked for a healthier superannuation deal. My prospective employer could see I had valid reasons for my counter offer. They accepted my request. So don't be scared to provide a higher counter offer but have your reasons ready to explain the rationalle. 

An additional question that the panel might ask you is "What are you making at your current job?". While this is a rare question, always be prepared for it. Sometimes I even mention my current salary without being asked to highlight why I am asking for a figure greater than what they have offered. To answer this question, you can say “This position is not exactly the same as my last job. So let’s discuss what my responsibilities would be here and then determine a fair salary for this job.” It’s hard to argue with words like “fair” and “responsibilities” and you’re earning respect with this one.

Always remember that negotiating an acceptable salary makes you appear confident and aware of your value. While it can be awkward, it makes a good impression on your prospective employer. By the time the interviewer has asked two or three times, the interviewer will know that hiring you means having a tough negotiator on his team - another reason to make you a good salary offer! So don't be shy to ask for the right price for yourself!

For more tips on this topic, check out this article - Interview Questions About Your Salary Expectations.

My next blog will be in the new year. It will delve into the 7th topic of my series - 'Why do you want this job'. To all my readers, have a safe and wonderful festive season and see you in 2017.