Desired salary questions are awkward. Do you low ball or highball? What should you do?
Ask for too much, and they might laugh you out and hurt your chances of getting any kind of pay raise. Not including the blow to your self-confidence.
Ask for too little, and you might be missing out on being correctly compensated for the work you do and the value you provide to the company.
Well, you negotiate, and if you do it right, you could get a higher salary.
What's your desired salary? $40,000, $60,000, $100,000+?
We all have a number in mind, but very few of us ever achieve it. It's not necessarily because of our industry experience but more to do with our negotiating skills.
Although it may not seem important, effectively negotiating your salary can make a significant difference. We're talking about a potential 5, 10, or even 20 percent more than the original offer.
In this post, I'm helping you tackle the dreaded desired salary question and get more from your employer by covering:
- The ins and outs of salary negotiations
- Tips on how to answer salary interview questions
- How to determine your desired salary
- The dos and don'ts of negotiating effectively
Let's get into it.
What are salary negotiations?
A salary negotiation is where you discuss your wages or commissions with a company representative, usually someone from HR or your potential manager.
This is essentially your chance to discuss what kind of pay increase you want, as well as hear what the company representative has to say regarding what they can and can't agree to.
Examples of salary negotiations
During the interview process
Negotiations typically occur during late-stage interviews (e.g., in the third round). However, they aren't always initiated by the candidate. If you have multiple job offers, a company might increase your expected salary to encourage you to accept their offer.
After receiving an offer
If you've received a job offer, but the pay is lower than expected, you can ask your potential employer if they're open to increasing your salary. However, approach this carefully to avoid giving the impression that you're only there for the money and are not interested in the company or role.
When you're already employed
Even current employees can participate in salary negotiations. For instance, if another company tries to recruit you with a higher salary, you might feel you deserve a raise from your current employer. Just be careful about how you bring up outside offers, as this approach can backfire if not handled diplomatically.
Top 5 tips on how to answer salary interview questions
So, when it comes to negotiating your salary, it all really comes down to how you perform using your salary negotiating meeting and the outcome of said event. Here are some tips to ensure you nail it and get the best outcome possible.
1. Do your research on the role
You can present an informed response to a salary interview question by setting your expectations based on that position's current market value.
Before going for an interview, research the salaries people in your job and industry earn. This way, you'll get a better idea of what the employer may have budgeted for that position.
For instance, if you're applying for a job at Amazon, expect the recruiter to ask for your desired salary during the screening interview as part of their hiring process.
Remember to consider your experience when researching salaries. More experienced applicants often have leverage when discussing compensation, while less experienced applicants might need to accept an entry-level salary.
Use resources like salary calculators or websites such as Paysa, Indeed, or Glassdoor to research average salaries in your particular industry, location, and position.
2. Create a salary range
Giving your interviewer a specific desired salary, like $50,000 per year, can be limiting. What if they budgeted for less? What if they expected you to suggest a lower amount?
Worse, you might get exactly the salary you ask for even if the company has a much larger budget for the position. There are real cases of recruiters offering $85,000 when the job had a budget of $130,000.
When considering your desired salary range, be realistic but ambitious. If you ask for too much, you risk losing the opportunity altogether. However, if you ask for too little, you'll likely miss out on the salary you truly deserve.
3. Talk about benefits
Many companies offer benefits in addition to a salary package. For example, you could be eligible for healthcare, flexible work arrangements, or professional development opportunities.
Communicate to your interviewer that you're seeking a salary within a specific range and are willing to discuss benefits as part of the complete compensation package.
While a recruiter's salary budget may not meet your expectations, they can often offer valuable benefits to supplement your compensation.
4. Justify your worth
Before going to an interview, think about why you believe you're worth your desired salary.
Do you have rare or in-demand skills? Do you have extensive experience using the technology and processes utilized at the company? Have you demonstrated measurable results in previous roles?
Being able to discuss how you arrived at your salary range by breaking it down shows the interviewer your motivations and helps them understand your sense of worth.
If you're unsure what to ask for, assess your average market value based on research to get a reliable answer.
5. Timing matters
Perhaps the most important tip: Be strategic about when you negotiate.
Our mentors at MentorCruise suggest that you shouldn't negotiate until you've reached the "final" rounds of the hiring process—when they've shown clear interest in hiring you.
This puts the ball in your court. The employer already wants you, so they have a vested interest in getting you on board. Use this leverage to your advantage when negotiating your salary.
How to determine your desired salary
Step 1: Compare your current job to a benchmark job
A benchmark job is any position with consistent salary expectations and responsibilities across organizations and industries.
By comparing your role to benchmark jobs, you can determine whether your current pay range is fair.
Focus on finding the right benchmark job based on job descriptions and required skills, not just the job title.
Once you find a benchmark job that matches yours in both title and description, you can move forward to step two.
Step 2: Analyze company factors that determine pay
The company size, industry type, and location will directly influence the salary range.
A smaller company will often grant you more access to executives and upper management but might pay less than larger organizations.
For the industry, negotiating with recruiters in a booming sector is typically easier than with those in a declining one.
Finally, your location is crucial. A tech job in California will likely pay more than the same position in Florida simply because the cost of living is higher.
Step 3: Calculate your worth
After studying company factors and job benchmarks, assess your job performance and skill set honestly.
An entry-level employee won't command the same salary as an experienced professional, even with the same title. Be realistic about your experience and performance to get a genuine idea of what you should earn.
Sample responses to salary interview questions
Based on our discussion, here are some effective responses to help you answer salary interview questions:
When you want to defer the discussion:
"At this point in my job hunt, I'm focused on finding the best-fitting role for my career, and I don't have a definite figure in mind yet. What range did you budget for this position?"
When you've done your research:
"I'm looking for something in the range of $65,000 to $75,000. I arrived at this range after researching the fair market salary for people in this role. Given my unique skill set and experience, I believe this range is fair."
When you want to show flexibility:
"Thank you for asking. I'm quite flexible on the specific number, but I think a salary range of $55,000 to $60,000 is reasonable, considering this is the fair salary given to people in this industry with comparable experience."
When highlighting specific skills:
"I anticipate earning around $32,000 for this position. My experience with Salesforce CRM, which you mentioned is crucial to the job, along with my soft skills, supports this number. Would this work for you?"
When considering the total package:
"This sounds like a unique position, and I appreciate being considered. I'm looking to earn between $38,000 and $43,000 annually. I believe this is reasonable given my range of hard and soft skills and industry knowledge.
However, with the right benefits package, I could be more flexible on salary expectations."
How to change salary expectations after the interview
Salary negotiations can continue across multiple interviews. If you need to adjust your expectations:
Ask for more time to think about the offer
Sometimes, it's wise to consider an offer carefully, particularly if it falls short of expectations. Let the employer know you're considering their proposal and will respond soon.
Employers typically allow up to a week to decide. If they need an answer sooner, a day or two is reasonable.
If the offer significantly undervalues your minimum acceptable salary, promptly declining allows you to continue your job search without delay.
Respectfully decline the offer outright
If the salary is too low and non-negotiable, it's reasonable to decline respectfully. Maintain professionalism, as the company has invested time in the hiring process.
Negotiate and make a counteroffer
Approach salary negotiations strategically. Before engaging:
- Research the average salary for the position
- Be ready to justify your request with market data
- Emphasize the value you bring to the role
- Aim for a mutually beneficial outcome
- Be open to compromise
The dos and don'ts of answering "desired salary" questions
The dos
- Leave the salary range blank if possible to retain negotiation flexibility later
- If required to provide a range, offer a realistic one that reflects your experience and the market rate
- Focus on the value you bring to the organization
The don'ts
- Avoid setting an overly specific salary range that may limit your negotiation potential
- Don't lock yourself into one number
- Avoid suggesting a range where you'd be disappointed with the lower end
- Don't disclose your salary history (in some places, it's illegal for employers to ask)
Frequently asked questions about desired salary
What should I put for the desired salary on an application?
The best approach is to be as vague as possible—leave the field blank or give a salary range if you must include something.
If you decide to put a range, use platforms like Glassdoor as a guide. They have extensive databases of average salaries and even show low, mid, and high salary rates for specific roles.
Can I put "negotiable" for salary requirements?
Yes, it's generally acceptable to write "negotiable" as your salary expectation. However, some application forms only accept numeric values, so it's not always possible.
What is the minimum acceptable salary on applications?
When deciding on a minimum desired salary, ensure it's an amount you'd be happy to receive. Research average salaries for the position and consider going slightly above your absolute minimum.
Do companies offer more than the expected salary?
With the right negotiation techniques, you can often get companies to offer you a higher salary than your stated minimum. Just make sure you can justify your requests.
For example, you might mention that during the interview, you learned about additional responsibilities you weren't previously aware of. Or you could point to new market data about competitor salaries.
Why do companies make lowball salary offers?
Companies may present lower offers for several reasons:
- Testing waters with low offers, assuming candidates will negotiate
- Trying to reduce costs, especially during tough financial times
- Creating negotiation space with initial low offers
- Some recruiters aim to keep costs down, sometimes offering less than the allocated budget
Get a career mentor with MentorCruise
To conclude, it's common for recruiters to ask about salary expectations, but try to stay as vague as possible initially.
Setting a high amount could immediately turn them away while setting an amount too low could limit your ability to negotiate later.
The goal is to save detailed salary discussions until you're confident they want to offer you the position. For better guidance through this process, consider talking with a career mentor who can provide personalized advice for your specific situation.