During a job interview or when completing an application, feeling uncertain about how to respond to the question “What are your salary expectations?” can be quite distressing. The fear of asking for a salary that is either too high, which could result in losing the opportunity for a job you desire or need, or too low, which could mean settling for a lesser income than you deserve, can be overwhelming. Additionally, there may be worries about being unfairly judged by the interviewer based on the monetary figure you state.
Note: What are your salary expectations?” is a different question from “What is your current salary?” which is wrong for companies to ask.
We have all the advice you need to confidently handle any inquiries about salary expectations and ensure you receive the appropriate compensation you deserve.
Why do companies ask, “What are your salary expectations?”
Companies ask about salary expectations for several reasons.
Firstly, they want to ensure that they can meet your salary requirements and offer you a compensation package that aligns with your expectations. By asking about your salary expectations, companies can determine if they are able to provide a competitive salary and benefits package that will attract and retain top talent.
Secondly, asking about salary expectations helps companies assess the value you place on your skills and experience. It gives them insight into your level of confidence and self-worth. Companies want to hire candidates who have a realistic understanding of their market value and are able to negotiate effectively.
Moreover, knowing your salary expectations allows companies to plan their budget and allocate resources accordingly. It helps them determine if they can afford to hire you and if they need to make adjustments in their financial planning.
It is important to note that discussing salary expectations should be done at the appropriate stage of the hiring process. Companies typically ask this question during the interview or during salary negotiation discussions. It is advisable to research the market rates for similar positions and consider your qualifications and experience when formulating your salary expectations.
Tips on how to answer salary expectations in an interview
- Conduct thorough market research
Prior to the interview, it is crucial to gather information on the average salary range for the specific position you are applying for. This research will provide you with a realistic expectation and help you understand the industry standards.
- Talk to people in similar roles
Comparing salaries with people in your network who have the job you want is another way to gain insight, Fink says. Use multiple sources to get a good sense of the going rate for the kind of job you’re interviewing for, and take into account any additional skills and qualifications they have, the size of their company, their career trajectory, their industry, and their location in comparison to you.
- Consider evaluating your essential needs
As you plan for your future job, it is important to consider your personal financial needs and desires. Take into account your anticipated expenses and goals. If this is your first job and you will be moving out of your parents’ house, you may need to budget for new expenses such as childcare or a car to commute to work. Additionally, if you will be relocating for the job, consider the costs of moving and the cost of living in the new area. By considering these factors in advance, you can ensure that you are prepared to negotiate your salary based on your actual needs and avoid unintentionally accepting an inadequate offer.
- Prep your answer beyond just numbers
It is important to note that the salary is just one aspect of what you are seeking, and you are taking into consideration the salary as part of the overall opportunity. When formulating your response, it may be beneficial to emphasize the value you can bring to a prospective employer to support the salary range you are providing. The company is making an investment and will receive a valuable employee in return.
- Prepare in advance
Take the time to carefully consider your salary expectations before the interview. Evaluate your qualifications, relevant experience, and the responsibilities of the role you are applying for. This will enable you to craft a well-thought-out and reasonable response.
4 Best ways to answer “What are your salary expectations?”
When discussing salary expectations during a job interview, it’s important to approach the topic with thoughtfulness and preparation. Here are four effective ways to answer the question “What are your salary expectations?”
1. Give a salary range
When providing a salary range, you demonstrate your flexibility and willingness to work with the potential employer. Additionally, sharing specific numbers showcases the value you can bring to the table and indicates that you have conducted research to determine your worth. This conveys your seriousness about your skills and what you can contribute to their company. During an interview, it is advisable to position the lower end of your salary range towards the middle to higher point of what you are seeking. For instance, if you are personally aiming for a salary between ₦150,000 and ₦200,000, and you estimate that the company has budgeted between ₦140,000 and₦160,000, you could provide a range of ₦170,000 to ₦200,000. This way, even if the company negotiates below the range you stated in the interview, you will still be satisfied.
Examples of giving a range
“Based on my previous mention of my expertise and certifications in Excel, I believe my experience would greatly benefit the team. Therefore, I am seeking an annual salary ranging from ₦150,000 to ₦170,000 for this particular position.”
2. Flip the question
what the company is looking to pay. Once the interviewer answers your question, they’ll expect you to say if the salary works for you. So you still need to do your research, but now you’ll be able to tailor your response to the budget the company has. If the interviewer gives you a number or range in line with what you expected or higher, great! You can talk about how that sounds perfect for you. But if the response is lower than you’re happy with, you have to come up with a plan to respond.
When asked about your salary expectations, you can also inquire about the budget the company has in mind. This way, you can tailor your response accordingly and still conduct your own research. If the interviewer’s response aligns with or exceeds your expectations, you can express your satisfaction. However, if the response is lower than what you desire, you will need to come up with a plan to address the situation.
Examples of asking a company their salary expectations
“That’s an excellent question. It would be beneficial if you could provide the salary range for this position.”
If the interviewer mentions a salary of ₦150,000, which is slightly below your desired range, you could respond with something like:
“I was aiming for a salary within the range of ₦160,000 to ₦165,000, but I am definitely open to negotiation based on the overall compensation package.”
If you’re seeking a higher salary, you may encounter a roadblock:
“Regrettably, given my experience and current earnings, I am uncertain if I can accept anything below ₦180,000 annually. Is there any flexibility in the budget for this position?”
3. Give a specific number
Responding to inquiries about salary with a solitary figure typically restricts your ability to negotiate effectively with the company. However, in certain exceptional circumstances, it may be appropriate. If you lack complete confidence in your reasoning or cannot afford to miss out on this job opportunity due to salary demands, we recommend offering a narrower salary range for the company to consider.
Example of giving a specific salary number
“I would like to earn [number] in my next position, taking into account my current/previous salary of (number) and the unique skills, connections, achievements, or influence that I bring to the table. However, I am open to considering a salary range for the right opportunity that offers long-term growth potential and benefits that I value.”
4. Delay answering
When you are still in the process of understanding the extent of a job and the perks that the company offers, you may choose to postpone answering questions about your salary expectations.
They are responsible for providing you with that information before you can discuss numbers. By confidently delaying your response and showing a willingness to continue the conversation, it becomes incredibly difficult for them to pressure you into giving a salary range on the spot.
However, it is important to note that you should not default to this strategy out of fear of missing out on a job or being afraid of having a difficult conversation. When you are desperate for a job, it may be tempting to accept any salary offered, but ultimately, you are not doing yourself any favors.
Examples for how to delay answering, “What are your salary expectations?”
“That conversation holds great significance, and I eagerly anticipate engaging in it. However, in order for me to provide you with specific figures, I first need a clearer understanding of [enumerate the information you seek regarding benefits, perks, bonuses, or other aspects of the role].”
“At this moment, finding the right position for myself takes precedence over salary considerations. I am keen on learning more about the job, the company, and the comprehensive benefits package before delving into numbers.”
Remember that throughout discussions on salary expectations, you bring value to any organization you join. Identifying and communicating your value to potential employers will ultimately aid you in receiving the compensation you deserve.
