Avoid Salary Talk Mistakes

You're midway through the interview when it hits: "So, what's your expected salary?" 

Your mind races to find the perfect number - not too low, but not outrageously high either. 

One wrong move and you fear the interviewer might judge your worth solely on that figure.  

Don't panic. 

We'll explore why this question sparks so much dread, what hiring managers actually want to hear, and how to craft a response that keeps you in contention without underselling yourself. 

Brace yourself as we dive into negotiating your true market value - the path to your dream job (and salary) starts now.

In today’s edition, we will cover:

• Why is the Salary Expectations Question So Challenging?

• What Not to Say to a Hiring Manager?

• How to Prepare an Effective Answer?

• Use the ‘DPS’ Strategies 

Why is the Salary Expectations Question So Challenging?

The salary expectation question during a job interview can be a real mind-bender, can't it?

It's all about striking that delicate balance between standing up for what you're worth and not pricing yourself out of the running.

1. Fear of Undervaluing Yourself

Let's be real, none of us want to lowball ourselves and end up with a compensation package that's below market rate or doesn't align with our experience and skills. Setting the bar too low can leave you feeling undervalued and dissatisfied.

2. Risk of Overshooting

But on the flip side, if you quote an unrealistically high number, you could quickly disqualify yourself from the role. Employers have budgets to work within, and if your expectations are significantly higher than their range, they may assume you're just too expensive to hire.

3. Discomfort with Money Talks

Let's be honest, discussing compensation can feel downright uncomfortable, especially with someone you've just met during an interview. Society has conditioned us to avoid openly talking about money matters, even though it's a crucial part of the job negotiation process.

What Not to Say to a Hiring Manager

Many people start stuttering when the hiring manager asks the “Salary Expectation” question. Well, here are some DO-NOTS that you should keep in mind while answering the question.

1. Giving a specific number right away

This can limit your negotiation power. Even if the offer is below market value, the interviewer may use this number as a benchmark.

Wrong Response: "I'm expecting a salary of $75,000 for this role."

Right Response: "Based on my research and experience, I'm looking for a salary in the range of $70,000 to $80,000 for a role like this."

2. Undervaluing yourself

Avoid lowering your salary. This can lead to being offered a lesser salary than you deserve. Don't be afraid to ask for what you're worth.

Wrong Response: "I'm flexible on salary. I'm just happy to get an opportunity."

Right Response: "While I'm open to negotiation, I have a good understanding of the market rate for someone with my skills and experience. I'm hoping we can agree on a fair compensation package."

3. Avoid being ‘inflexible’

While it's important to know your worth, be willing to negotiate. Sometimes, the employer cannot meet your salary expectations. In that case, seek other benefits. It can be bonuses or opportunities that can compensate for a lower salary.

Wrong Response: "My expected salary is $90,000, and I'm not willing to budge on that."

Right Response: "My target salary range is $85,000 to $95,000, but I'm open to discussing other components of the compensation package, such as benefits or bonuses."

4. Focusing on your needs

The conversation shouldn't be about what you need financially. Instead, highlight the value you bring to the company and how your skills benefit them.

Wrong Response: "I need at least $80,000 to cover my living expenses and debts."

Right Response: "With my proven track record in [relevant experience] and the value I can bring to this role, I believe a salary in the range of $75,000 to $85,000 would be fair and in line with industry standards."

How to Prepare an Effective Answer?

1. Know About Your Industry

Before going into an interview, research about the industry. Understand what people in that industry usually get paid. What are the highest and lowest salaries in your industry? Set a price for yourself from there.

- What is the typical salary range for your role and experience level in this industry?

- What are the highest and lowest salaries you can find for similar positions?

- How do salaries vary based on factors like location, company size, and specific skills required?

2. Know About The Company

Every company has a different structure of salary. Bigger corporations often offer good salaries but less room for rapid advancement. Whereas, startups might offer a lower base salary but make it up with stocks and dividend options.

- What is the company's compensation philosophy and structure?

- Do they tend to offer higher base salaries or package more compensation through bonuses, equity, or other benefits?

- How do their salary ranges align with industry standards?

3. Know Your Worth

Understand what you are putting on their table. How much experience do you have? What skills are you offering? Before putting your price, consider these questions.

- What is the value you bring to the role based on your experience, skills, and achievements?

- How do your qualifications and expertise compare to the job requirements?

- What unique strengths or certifications do you possess that could justify a higher salary?

- Are you willing to accept a lower base salary in exchange for other benefits or opportunities?

BONUS TIPS

1. Review salary surveys and reports from reputable sources like PayScale, Glassdoor, or industry-specific publications.

2. Consult with professionals in your field or join relevant online communities to gather insights on typical compensation ranges.

3.  Leverage your professional network to gather insights from those working in similar roles or at the same company.

4. Consider reaching out to recruiters or industry experts for their perspectives on fair market value for your skills and experience.

Use the ‘DPS’ Strategy to find the right number

Now you know how to think about a particular salary number in your mind, here are some strategies you can use to answer this question.

The Deflection Strategy

Sometimes the hiring manager asks the question way early in the interview. In that case, you can deflect it and try to understand more duties and expectations.

The Plus Package Strategy

Rather than salary, check out what other benefits they are providing to you. Get details about their perks, and compensations including other possible opportunities. Sometimes the salary might be less, but compensation packages are attractive.

The Salary Range Strategy

So, it’s when you finally have to give an expected salary package, but don't limit yourself by giving a specific number. This is the moment when you give a range of your salary. Before giving so, remember that the interviewer will negotiate that value, so give your lower-end salary close to mid-range.

A note from the Founder of Recruit.net:

Salary negotiations are almost always the most interesting as well as the most nerve-wracking part of the interview game.

I myself have seen 100s of salary negotiations up close and this is what I suggest you do so you come out winning in the game:

1. The Power of Silence: After receiving an offer, resist the urge to respond immediately. Silence can be your ally. This gives you time to evaluate the offer and formulate a thoughtful response.
   

2. The “Band-Aid” Technique: If the initial offer falls short, propose a “band-aid” solution. Say, “While I appreciate the offer, considering my experience, would you be open to adjusting the base salary to $X?” This approach softens the ask and encourages dialogue.
   

3. The “Win-Win” Mindset: Approach negotiation as a collaborative process. Instead of adversaries, view yourselves as partners working toward a common goal. Show empathy for the company’s budget constraints while advocating for fair compensation.

Remember, the legacy of Recruit.net lies in empowering job seekers. Negotiate with poise, advocate for your worth, and build bridges that span beyond the offer letter.

Wishing you a prosperous career journey!

Together, let's make 2024 your year to shine!

Hope you liked reading this issue of the newsletter

Best,

Team Recruitment Letter