Successfully Answering “What Is Your Desired Salary?”
The essential sections of a lucrative job posting include job title, company overview, job summary, key responsibilities, required qualification, preferred qualification, compensation and benefits, information about the application process, job location, and contact information. In some job postings, the compensation and benefits section does not provide clear information about salary. As a potential candidate, based on your qualifications, experience, and skills, you have specific wage expectations. However, phrases like ‘salary as per industry standards,’’ salary best in the industry,’ or ‘salary no bar for a good candidate’ do not clarify the actual compensation being offered.
Your salary is a deciding factor. You may have left your last job because you were not getting paid enough despite your significant contribution. Anyways, you will face this question in the interview, ‘what are your salary expectations?’
What Should I Say for Desired Salary
Why Employers ask this Question
There is a predetermined salary range for the advertised role. The employer must ensure that your expected salary meets budgetary constraints. Your expected salary also provides a starting point for negotiation.
How to Determine your Desired Compensation
First, determine the role’s market rate for qualifications, experience and skills. Platforms like Glassdoor and LinkedIn provide insights on salary ranges for a role. You can justify your salary leaning towards the higher end if you are highly experienced with specialized certifications, skills and accomplishments. If you are just starting, have wage expectations aligned with the lowest end of the range. Now you have an idea of the industry standards.
Cost of living is another important consideration. If you must relocate for the job, learn about the local living expenses. Try to research the organization. Compare the company’s compensation trends with the industry standards.
Strategies to Answer this Question
Provide a Range
You cannot demonstrate flexibility by providing a fixed number. After the research, you already have a salary range. This range will leave room for negotiation. Be open to discussion.
Ask the Budget
You can also ask about the budget allocated for the role. This effective approach helps you understand the expectations of the employer. Asking this question also shows that you are interested in aligning with the budgetary constraints of the employer.
A Polite Deferral
It is acceptable to say you would like to revisit the salary conversation later. This strategy allows you to learn more about the job responsibilities.
Align with The Budget
Employers often appreciate employees showing a willingness to align with the financial limitations of the organization. This flexibility indicates that you are open to finding a solution that is in the best interest of both parties.
What to Avoid When Answering
Approach the conversation of desired compensation thoughtfully and strategically. Like every other interview, this conversation reflects your professionalism and knowledge of the industry. However, many candidates often weaken their position while answering this question. Avoid the following mistakes to secure a competitive offer:
Underselling
Some candidates ask for too little if the organization has not provided any salary information or shared a salary range. Even if you are experienced and skilled enough to bring value to the organization, asking for below the industry standards may make the employer perceive that you are unsuitable for the role. Most employers are willing to pay a fair salary to the right candidate. Now, a situation may arise where you have demonstrated your value but are underselling. You will be stuck at a low salary.
Overpricing
Make sure that you can justify it if you have higher salary expectations. Asking for a salary that does not just exceed the employer’s budget and the industry norms hurts your chances of getting hired. This clearly shows that you are entirely out of touch with the value of your skills and market realities.
Being Too Vague
You don’t leave any opportunity for negotiation by being vague. Being flexible does not mean you can respond like you are open to any fair offer. This kind of response shows that you don’t have clarity of your worth or you have no idea of the market rate. Lack of clarity is not a good trait in professional settings. This demonstrates a lack of preparedness and raises concerns about commitment to the role.
Emotional Response
The conversation should be all about your experience and skills. Avoid talking about your financial obligations. Focus on what you have to offer.
Handling Salary Discussion in Different Scenarios
Online Form or Written Application
Many employers seek answers to this question when a candidate applies for the job. The employer can ask for this information in the written application or in an online form. Provide a specific salary range, or you can phrase it as ‘as per the industry standard’.
Early in the Interview
Be delicate when you are asked this question early in the interview. You need more information about your role and responsibilities. There is nothing wrong in asking - ‘I would like to learn more about the responsibilities and expectations.’
Or, you can say - ‘my research shows that the salary for this position ranges between X and Y.’
During Final Negotiations
Congratulations. You have made it to the final round after clearing technical and other rounds. Now, you are in a better position to give a salary range as you have demonstrated your value, and you also have more clarity about the responsibilities and expectations for the role.
Conclusion
Do your research and be the best prepared to answer this critical question. Unrealistic salary expectations will not leave a good impression as it shows that you did put in effort and to learn about the market. Being flexible shows that you understand the company’s financial constraints and are open to finding a solution. Negotiation paves the way for an agreement that is mutually beneficial.
