THE BIG SALARY QUESTION
At job interviews, many interviewees fumble through the question of salary. Often times hiring managers throw out the salary question leaving applicants to come up with a number. Sounding indecisive and uncertain about pay expectations could lower the interviewer’s confidence to hire you. It is thus always good to prepare for the inevitable salary question.
Do your research and have a script. Visit credible websites like LinkedIn and consult with recruiters, former colleagues, friends and mentors to help you determine the current industry range for the position you are applying for. The risk of not knowing the market rate might leave you asking for too little or over-pricing yourself out of the position. Knowing the average salary range will help you determine whether the salary you are asking for is reasonable.
After doing the research, take a look at your current situation. Review your monthly expenses, loans and amortizations that you need to pay. Consider other factors too that affect you financially. Are there people who depend on you financially? Will you need to relocate and will you need to rent? Will your transportation expenses increase? Are you planning for a big purchase over the next 5 years like buying a car or a house? Take a look at all details of your current situation and future plans. This will help you determine the monthly income you need now to pay your bills and live comfortably.
Take stock of your credentials and accomplishments as well. Take note of your current salary, post graduate degrees, special trainings, work experience and scope of responsibility. These will help you identify the value you can bring to the company. On average, the salary increase when changing jobs is between 10% and 20%. If for example you’ve got an MBA and currently have nationwide scope in your work now, you can lean toward the higher end of the range upwards of 15%. This range however can change depending on industry and the applicant’s circumstances.
Once you’ve done your research and mapped out the value you bring, you now have all the information you need to answer the question. Prepare a short but direct script that has these three elements:
- Give a salary range. This shows that you are open to negotiating.
- Support your numbers by telling them how your credentials and experience meets the job requirements and how they also add value to the company.
- In closing, ask whether the range is within the company’s budget. This will give you an idea of the direction of the negotiations.
If the offer is lower than the range you gave, see if you can find other things to make the offer workable for you and the company. Ask if they’ll allow flexible work hours, give longer vacation time, provide tuition for professional development courses, give a signing bonus, offer higher commission rates and bonuses, give profit-sharing agreements or stock-options.
If the company really can’t afford or will not meet your salary range, don’t be afraid to decline. Taking a job that doesn’t meet your target salary will leave you dissatisfied and struggling to pay your bills. Chances are you’ll probably be job hunting again sooner than you’d hoped for.
