Answering: What Are Your Salary Expectations?
Written by Cynthia Medina Carson
Since the introduction of pay history bans across the United States, recruiters have been looking for new ways to ask the old question, “What is your current compensation?” Although it is illegal in many states for employers to pay different wages to men and women for the same work, and even to ask the question about past salary benchmarks, there is still a significant pay gap between genders. The salary history ban is designed to lessen this inequality by making sure a person’s past salary is not used as an indicator of what they should make in their next position. But companies still need to figure out what to pay you. You will often hear a new phrase designed to get to the same information: “What are your salary expectations?”
Why are they asking this question?
➔ Some employers may want to get a sense of whether or not they can afford you.
➔ Others may want to know what’s the least they can pay to get you on their team.
➔ For some, it helps them gauge whether you are at the correct professional level.
Answering this question without good research comes with risks. While you want to aim high, you also don’t want to aim so high that you put yourself out of the company’s salary range. If your range is too low, you leave the employer room to go even lower and make a below-market offer for your work. By doing adequate research and preparation you can hit the sweet spot, so to speak, of demonstrating to the employer that you are flexible with your salary, but that you know your worth.
General Guidelines:
Avoid giving a set amount first. Job seekers often ask us, “Do I have to give them a number?” Technically, you don’t. If you are at the beginning of a negotiation, it is ok for you to suggest, “Let’s see if this is a good fit for both of us and then we can discuss the numbers.” On the other hand, as a former recruiter, I have seen conversations extend for too long — only for both parties to realize neither would be happy with the salary range on the table.
Offer a flexible range. If you are ready to have the salary conversation, start by emphasizing your flexibility. Most employers will want to hear specific numbers. When you offer them a range, it allows you to remain flexible while still giving the employer a clear answer. You can create this range based on research or your own experience in the industry. Keep in mind, however, that the employer may opt for the lower end of your range, so make sure your range represents a target number you would truly be okay taking.
Give yourself a raise. Ratchet up your current pay by as much as 15–30%. If you were to get an offer in this range, chances are you would take it. Do the research by asking around in your industry to better understand if this is within a reasonable range for your level of experience.
Always ask for something. Many candidates are hesitant to ask for more money because they worry that it could cost them a job offer. This is not true. It takes a great amount of time and resources to recruit a great candidate. Managers are interested in getting the person in the door and working. They may say no, but they will not rescind a justifiable counteroffer.
Only give numbers you’d be happy with. Remember, only specify a range that you find acceptable, that shows the value of your work, and that would incentivize you to make a move. Candidates who undervalue their work may ask for a lower offer, get the offer and then have buyers remorse a few months later. This doesn't bode well for the candidate or the company in the long term.
Deflect the question. If it’s early in the hiring process and you’re still learning the specifics of the role and the expectations that come with it, you may want to deflect the question for later in the conversation. However, keep in mind that you will eventually have to discuss salary expectations! Either way, it’s a good idea to be prepared with a well-researched number in mind — even if you’re still factoring in additional information.
One key piece of information that Wager emphasizes with clients how much more power candidates have during the negotiation process than they realize. Companies spend between $10,000-$100,000 to find a great candidate and take 52 days on average to get them to offer. No one wants to lose a candidate at the late stages of a negotiation. Being strategic about the salary questions before you start negotiating is important. Be flexible and amenable, but resist the temptation to low ball your salary expectations until further into the process. Remember, the farther you get, the better possibility you have to get paid the salary the job and your skillset deserves.
Want to dive deeper into the critical steps you can take to better negotiate your salary?
Join WIN and Wager on Thursday, August 6th for our FREE webinar: Salary Negotiation 101
ABOUT THE AUTHOR
Cynthia Medina Carson
Cynthia is a Salary Transparency Maven, Career Coach, and Recruitment Expert. As the Founder and CEO, Cynthia started Wager because she saw firsthand how the lack of salary information created information barriers and anxiety in the workplace. A graduate of Georgetown University and Harvard Kennedy School of Government, previous to her work in the talent field, Cynthia worked as an international relations and policy expert for the Department of Treasury, Homeland Security, and JP Morgan and served in the Peaces Corps in Nicaragua.
To learn more about Wager and their mission to create spaces for transparent, informative, and healthy salary conversations visit their website at www.wewager.co