How To Answer Salary Expectations During Job Interviews?

Salary can be a sensitive subject to tackle during the hiring process. After all, addressing your salary expectation during job interviews can determine your career prospects. Hiring managers use the question "What is your expected salary?" to check if your financial requirements match their compensation structure. It's best that you prepare and approach this topic carefully. Depending on your answer, you may either land the job or disqualify yourself from the process. 

Preparing for the salary expectations question is vital for two main reasons. It shows that you're informed about the job market and industry standards. As a result, you can assert your value and get fair compensation for your skills and experience. Handling this question tactfully could also impress the interviewer. Better yet, it puts you in a favourable position during salary negotiations. Our guide contains strategies to help you answer this question effectively.

• Understanding the question
• How to research market salaries for your job
• How to determine your worth
• How to answer "What is your expected salary?" during the interview
• Key considerations when preparing your answer
• Example Answers
• Do's and Don'ts
• Conclusion
• Frequently Asked Questions (FAQs)

Understanding the question

Why do hiring managers ask this question? Understanding their motive enables you to provide a well-informed and effective response. Employers want to check if your salary expectations align with their budgeted salary range. This allows them to offer you a fair and competitive salary that's in line with the current market rate. 

It's important to do proper research and be mindful of your worth to the company. If you can prove your value to the employer, you might be able to justify your requested salary. While a high salary is often desirable, it's best to have realistic expectations. Factors such as experience and qualifications often determine salary. Aligning your expectations with the job market might help you reach a mutually beneficial salary agreement.

How to research market salaries for your job

Researching the market and industry is essential to determining your salary expectations. Here are some steps to guide your salary research:

1. Use reliable salary websites and tools

Make use of reputable salary tools and websites like JobStreet's Career Advice Salary Guide. These platforms provide salary data based on job titles, industries, and locations. Review the median salaries and the average salary range for different experience levels. 

2. Explore salary data from industry-specific sources

Look at trade associations, professional networks, or specialised salary surveys in your industry. They offer targeted and accurate data for your field. This helps you better align your expectations with industry standards.

3. Account for experience and qualifications

Regarding salary ranges, consider factors such as experience, qualifications, or location. Higher levels of experience, advanced degrees, and specialised certifications generally command higher salaries. Plus, the cost of living in your area can affect salary levels. Adjust your minimum salary expectations accordingly.

4. Gather information on company-specific salary ranges

You also need to know the average salaries for the role and company you're applying for. This helps you gauge its pay and compensation package to see if it meets your expectations. Job postings often provide salary ranges or salary indications. 

Check to see what companies are offering to get an idea of their entire compensation package. This includes health benefits among other perks. Compare the salary information for similar roles across different companies. This gives you a better sense of the market rate for the position.

Read employee testimonials and company reviews on platforms such as JobStreet. They provide first-hand information about a company's benefits and salary structure. You can find out which companies in the industry offer competitive compensation.

5. Network with industry professionals

Leverage your professional network to gather insights into a fair salary range and compensation practices. Talk to peers at industry events, or join relevant online communities. These contacts might be willing to share information and opinions about salary trends. This is helpful in refining your compensation expectations to align with the market.

How to determine your worth

Assessing your qualifications, skills, and experience can help you figure out your potential value to the company. This allows you to determine an appropriate asking salary during your job search. Here's how:

1. Evaluate your credentials and certifications

Do you have the educational background to perform the job? Do you have the relevant certifications for the role you're applying for? If you meet or exceed the company's requirements, you might have room to negotiate for a higher salary. 

2. Analyse relevant work experience and achievements

Review past work experience and accomplishments that are directly relevant to the position. Consider the scope of your responsibilities, notable projects, and quantifiable achievements. They showcase your expertise and increase your potential value. This allows you to seek a higher salary.

3. Identify unique skills and expertise 

Identify any unique skills or capabilities you have that are in high demand in your industry. These could be technical skills, language proficiency, leadership abilities, or other specialised competencies. Highlighting these strengths can enhance your marketability and justify higher salary expectations.

4. Consider your cost of living and financial commitments

When determining what salary you need, consider the cost of living and other financial obligations you may have. Do you have any long-term financial commitments? Are you saving for retirement, paying off debt, or supporting dependents? These might influence the salary you need to meet your financial obligations.

Research the cost of living in the area where the job is based. Consider housing, transportation, healthcare, and other essential expenses. Also, you might want to account for inflation to make sure your salary keeps pace with the rising cost of living.

5. Consider the total compensation package

Remember to look beyond the base salary of the position. Companies often structure their compensation packages to include other benefits. Check if the employer offers perks like:

• health insurance
• retirement plans
• stock options
• bonuses
• paid time off

These contribute to the overall value of the package and may offset a slightly lower base salary.

How to answer "What is your expected salary?" during the interview

Follow these steps to learn how to answer the question effectively:

1. Consider the stage of the interview process

Before answering the question, consider which stage of the job interview process you're at. 

Online job application

When you see the salary expectations question in online job applications, it's often best to leave the field blank, if possible. Avoid disclosing a specific figure prematurely. Or, say alternatives like:

• exact salary open for discussion
• dependent on the overall compensation package

This approach keeps the conversation open for future discussions.

Phone screening 

If you're at the initial phone screening stage, avoid discussing specific figures. Instead, focus on showing how you fit the job and how you can add value. An effective tactic is to politely deflect and ask more about the role and company. 

"Before we discuss compensation, I would love to learn more about the responsibilities, team culture, and opportunities to grow in the company. That will help me better determine a salary that is suitable for this role."

As you progress further into the process, salary discussions become more appropriate.

2. Emphasise your value

When discussing salary expectations in person, shift the focus to the value you bring to the role. Highlight the qualifications, skills, and experience that make you an asset to the company. This helps employers to better understand why you might command a higher salary.

3. Provide a range 

Provide a reasonable range that reflects your worth in the market while allowing room for negotiation. Use your research on the company and industry to substantiate your claims. Providing a range instead of a definite figure also gives employers options and helps keep you under consideration for the job.

4. Be flexible and open to negotiating

Stay open to negotiation when discussing salary expectations. Emphasise that your primary goal is to find a mutually beneficial agreement. You don't have to  compromise on your salary expectations. Let the employer know that you'd be willing to consider the compensation package as a whole. They might also be flexible and offer other incentives or adjust the package to meet your requirements.

Key considerations when preparing your answer

There are important factors to consider when preparing your answer. This helps you be more confident and provide a thoughtful response. Here are some things to keep in mind:

Be realistic

It's natural to prioritise your financial needs and not want to shortchange yourself. Still, you should aim for a realistic quote that's in line with your value and fair to the employer.

Understand the employer's perspective

For a more productive discussion, you should try to understand the employer's perspective. Does your asking salary fall within their current compensation practice? Have you taken into account the company's size, industry, location, and level of responsibility associated with the role? Being considerate of the employer might make them more willing to negotiate with you.

Expect trade-offs

Expect that trade-offs may occur during salary negotiations. Plan to have a range in mind that you're willing to accept. Set the minimum figure that you're comfortable with. 

If the proposed salary is below this amount, you may want to explore other options or make a counteroffer. If you choose to make a counteroffer, make sure to provide valid reasons and justify your position. Be firm but respectful throughout the process.

Example Answers 

Here are some examples of effective responses:

Example 1

"Based on my research and understanding of the market, I've found that the salary range for similar positions is typically between $65,000 and $75,000. However, I am open to further discussion, as each company might have a different compensation structure. I believe that the overall package, including benefits and growth opportunities, is equally important. I am more interested in finding the right fit and long-term opportunities than focusing solely on the base salary." 

Example 2

"Considering my qualifications and skills in Web3.0 and extensive experience in DeFi, I believe my value aligns with a salary range of $120,000 to $130,000 per year. Plus, my track record of launching successful Ethereum-based applications is highly valuable to the role. I am confident I'll become an impactful contributor to the team's success. I am open to discussing the compensation package in detail to ensure it reflects the value I can bring to the company."

Remember that examples only serve as a guide. You should tailor your answer to your specific circumstances and the position you're applying for. Personalise your answer to align with your experiences and goals.

Do's and Don'ts

Navigating the salary expectations question requires the right approach and careful communication. Here are some helpful things to keep in mind when addressing salary expectations:

Do: 

• Practise effective negotiation techniques: Use active listening and ask thoughtful questions during negotiations. Then, try to express your needs and expectations while remaining professional and respectful. 
• Consider the potential for growth and advancement: Share your interest in a long-term career with the company. Ask the employer about progression and opportunities for advancement. Discuss how your salary expectations align with your aspirations for professional development and increased responsibilities over time. 
• Emphasise your commitment and dedication: Convey your dedication to the role and the company. Show that you're enthusiastic and invested in the company's success. Express your willingness to go the extra mile, which can help justify your salary expectations. 
• Showcase your ability to deliver results: Highlight your proven record of achieving results and delivering value in your previous roles. Whenever possible, quantify your achievements to show how you can impact the company. This might help support your salary expectations. 

Don't:

• Don't be defensive or confrontational: Be positive and cooperative during salary discussions. Avoid getting defensive or confrontational if the initial offer is lower than expected. Instead, seek to understand the reasoning behind the offer and negotiate respectfully.
• Don't disclose your current or previous salary prematurely: Avoid sharing your salary too early in the discussion. Instead, focus on the value you bring and the market rate for the position before discussing specific numbers.
• Don't rush into accepting the first offer: It's important to carefully evaluate any offer presented to you. Take the time to review the details, including the complete compensation package, before you make a decision. Rushing into accepting the first offer may limit your negotiation opportunities.
• Don't compare yourself to others: Avoid comparing your salary expectations to others without considering individual circumstances. Factors like experience, qualifications, and geographic location matter in salary discussions. Each person's situation is unique, so focus on your own value and worth.

Conclusion

Salary can be a tricky subject to handle, especially during a job interview. Planning and being prepared can help you approach this confidently and professionally. Addressing salary expectations during job interviews requires research and strategic communication.

Understand your worth and supplement your demands with research. Take note of the key factors and common mistakes before negotiating. This can increase your chances of reaching a satisfactory agreement.

Frequently asked questions (FAQs)

1. How should I determine my salary expectations? 
   ⁠Research market salaries and the industry average. Then, check your qualifications and experience against the job requirements. Having better credentials may command a higher salary. Also, consider your financial goals and needs before deciding on a suitable figure.
   ⁠
2. Should I disclose my current salary when discussing salary expectations? 
   ⁠It's generally advisable to avoid disclosing your current salary too early in the process. Turn the focus towards what you can bring to the organisation, such as your skills and qualifications. Or talk about the market rate for the position before discussing specific numbers.
   ⁠
3. How do I ensure I'm not underselling myself when discussing salary expectations?
   ⁠Being confident in your worth will prevent you from selling yourself short. Conduct thorough research to understand the market value for your skills and experience. Provide a reasonable salary range based on your research, and relate it to the value you bring to the role.
   ⁠
4. What if the initial offer is lower than my salary expectations? 
   ⁠In this situation, remain open and express your willingness to negotiate with the hiring manager. Be firm but respectful. Highlight your qualifications and the value you bring to the position to support your desired salary range.
   ⁠
5. What factors should I consider besides salary during salary discussions? 
   ⁠It's appropriate to discuss benefits and perks as part of the overall compensation package. Healthcare, insurance, retirement plans, paid time off, and career progression are valuable too.