There’s a lot of advice on this blog about how to interview: Tell good stories, ask good questions, be a closer. But here’s only one most important thing to remember: when it comes to discussing your potential salary, never give the number first.
The right answer to the question, “What’s your salary range?” is almost always some version of “I’m not telling you.”
The person who gives the first number sets the starting point. But if that’s you, you lose. If you request a salary higher than the range for the job, the interviewer will tell you you’re high, and you’ve just lost money. If you request a salary lower than the range, the interviewer will say nothing, and you’ve just lost money.
So you can only hurt yourself by giving the first number. You want the interviewer to tell you the range for the position, because then you can focus on getting to the high end of that range. But you can’t work to the high point if you don’t know it.
So if there are two good salary negotiators in the room, it will be a game to see who has to give the first number. Fortunately, the company cannot make you an offer without also offering a salary, so the cards are stacked in your favor, as long as you hold your ground.
So here’s a list of responses for all the ways the interviewer will ask you how much money you expect to make. The more times you can fend off the question, the less likely you will have to be the one to give the first number. This works, even if you don’t have the upper hand and you really need the job.
What salary range are you looking for?
“Let’s talk about the job requirements and expectations first, so I can get a sense of what you need.” That’s a soft answer to a soft way to ask the question.
What did you make at your last job?
“This position is not exactly the same as my last job. So let’s discuss what my responsibilities would be here and then determine a fair salary for this job.” It’s hard to argue with words like “fair” and “responsibilities”—you’re earning respect with this one.
What are you expecting to make in terms of salary?
“I am interested in finding a job that is a good fit for me. I’m sure whatever salary you’re paying is consistent with the rest of the market.” In other words, I respect myself and I want to think I can respect this company.
I need to know what salary you want in order to make you an offer. Can you tell me a range?
“I’d appreciate it if you could make me an offer based on whatever you have budgeted for this position and we can go from there.” This is a pretty direct response, so using words like “appreciate” focuses on drawing out the interviewer’s better qualities instead of her tougher side.
Why don’t you want to give your salary requirements?
“I think you have a good idea of what this position is worth to your company, and that’s important information for me to know.” Enough dancing–this is one last attempt to force you to give the number first. Hold your line here and you win.
You can see the pattern, right? If you think you sound obnoxious or obstinate by not answering the question, think of how he feels asking the question more than once. The interviewer is just trying to get a leg up on you in negotiations. If you give in, you look like a poor negotiator, and the interviewer is probably not looking for someone like that.
So stand your ground, and understand that the interviewer is being as insistent as you are. And it might encourage you to know that research shows that if you mirror the behavior of the interviewer, you are more likely to get the job. Sure, this usually applies to tone of voice, level of enthusiasm, and body language, but who’s to say it doesn’t apply to negotiation tactics, too? Try it. You could come away lots richer.
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I wasn’t always able to be the second one to say a number and I suppose that if I was experienced I would have oped better in the situation. I am self employed now and look at the whole monetary negotiations a little different.
Posted by Gloria on February 27, 2008 at 7:34 am | permalink |
In sport, 90% of excellent execution comes from knowing in advance what you are going to do given a particular situation. The same can be said for going into this situation. Be prepared for what is going to come, and have the intestinal fortitude to do what you planned in practice sessions.
Nice post!
Posted by Dale on February 27, 2008 at 4:58 pm | permalink |
How would you deal with this requirement from a online ad
“Please include a cover letter, including salary requirement, with resume”
A well known manufacturing company – mid level tech position
Unless I guess the magic number, my resume gets sent to the circular file unread!
They don’t seem to want to provide “state of the art” compensation to enable employees to be “challenged to go beyond the confines of ordinary thinking, search for creative solutions and turn those solutions into reality”
Yet the HR page trumpets: “XXXXXX places a high value on the talent of its Team Members and believes in rewarding them for their efforts. ”
They just reward those who play their game
I am considering this position, due to my present state of unemployment.
It is a lower level position but it is out of the city, which in my area translates to an easy $5000 savings just for parking and fuel. So I would look at any position that has hassle free access outside of the gridlock as handing me an additional $5k hidden bonus over their offer just in personal convenience. Conversely, I would not consider a job in the heart of the gridlocked city for less a minimum $10K increase for the same or less responsibility.
So Do I just tell them that my salary requirements are negotiable depending on the rest of the compensation? Or say ” My salary requirements are commensurate with the industry norm for this position”
Thanks,
Nosmo
Posted by nosmo on March 8, 2008 at 2:02 pm | permalink |
Penelope,
What would you suggest for someone who is changing careers to a lesser-paying field? If someone is earning $200+ in finance and moving to an HR position (understanding she will take a cut), is the previous salary essentially irrelevant? Should you tell the recruiter your last salary to show what you have been worth?Career moves like this have become a trend.
Lisa
* * * * * *
The previous salary is irrelevant becuase it is a reflection of your worth in the finance industry. You need to find out your worth in the HR industry. It’s apples and oranges.
–Penelope
Posted by Lisa on March 10, 2008 at 11:50 am | permalink |
Ugh!!!
If you have a salary with you which are dissatisfied — IT IS YOUR FAULT. The HR person didn’t screw you. The hiring manager didn’t screw you. The company didn’t screw you. You set or agreed to a market value for your services that, upon research, seems misaligned.
If you are finding this out after the fact, you failed to do the research you should have done when you began your search. If the market conditions that led to your acceptance of the terms you were offered have changed, you simply have not responded to those market conditions and asked for a raise. In either case — look in the mirror.
I get a little frustrated when I hear comments from people suggesting that “HR People think they are kings” or “the hiring manager was mean.” I have been an HR Manager. I have been an Operations Manager. I have been a headhunter. I have been overpaid. I have been underpaid. You know who “fixed it” when it was fixed? Yours truly. You know who was at fault when it didn’t work? That’d be me too.
Do your research. Know your market (both industry and region) and confidently answer the question when the recruiter/hiring manager/hr person asks it. Dragging it out is coy and, frankly, you could very well be wasting your time as well any of the people with your potential future employer who can’t hire you if you cost too much. But if you’re respectful and have done your research, you just might get directed to another department where your skills, experience and salary requirements can be better accomodated.
The poster who noted that some companies have differeing philosophies on variable compensation made a good point. If you want to hedge your bet you can say, “I currently earn $xxx, with a fairly predictable x% bonus. Can you help me understand your philosophy on base pay vs. variable comp so I can give you a more intelligent answer on exactly what my salary requirements would be if you were to offer me this role?”
Lastly — don’t lie. I know there is a school of thought that says you should inflate your current comp. It’s increasingly common to require salary verification with job offer and most companies will terminate you if you falsify an application. As third party reference checking increases in popularity, look for this trend to continue.
Posted by Scott on March 17, 2008 at 3:45 pm | permalink |
I just the folks here saying “this dancing”, “this game-playing”, etc…
Okay…How about we play fair…And interviewers, etc. tell us exactly what the budgeted salary range for the position is, so we can…Either say “Sorry, it’s not a good fit”, “Yes, I am in the ceiling of that range”, “that works for me” or something…
If we are at the point of talking money – it means we are interested in the people, the company, the industry, and the position.
If we are willing to be flexible enough to say – YOU set the range…And we will still give you our best…WHY on earth would it make sense to force us to shoot us in the foot either on the up or downside?
Posted by Craig S. Kiessling on March 18, 2008 at 8:46 pm | permalink |
Thanks for the advice on negotiating a salary. I am a student attending UW-Milwaukee and will be graduating soon. Knowing the importance of having the employer or interviewer give the interviewee a salary range first is an important point to remember. Also, telling them you need a day to think about their offer, and then counter offering with a higher amount later is great advice.
Posted by Jonathan on April 3, 2008 at 11:37 pm | permalink |
I guess this really depends upon where you are in your career and your life. I am of the opinion that if I have thoroughly researched the position, I have an excellent idea of what it should pay. I believe that if they are asking for your salary requirements, they are likely attempting to low-ball you anyway.
In this situation, I know what it is I am looking for in terms of salary and wouldn’t want to work for less anyway. I would be tempted to give them MY requirements and see if they can meet it. I wouldn’t last six months working for less than my range anyway.
Of course, this is oversimplification from someone whose been self employed for quite some time now. The negotiation strategies mentioned by Penelope are the best strategies to implement for the masses, my personality is just such that I lack the patience for the “dance”.
Posted by William Mitchell, CPRW on April 25, 2008 at 11:21 pm | permalink |
Here’s a really good answer:
$80,000 a year, although I would go down to $75,000 a year if there was something very interesting about the job that would give me the opportunity to learn something new. If the position turns out to be particularly valuable in terms of doing new things and learning new things, I might go as low as $70,000, but not a penny below that.
The idea of not saying a number can be baloney.
I once asked someone who made 50% more than I how he did it. We both had the same job skills. I was actually a little better.
He said that when he emailed a resume, his very brief email included the amount he was looking for. If you say you’re an $80,000 a year person, that’s how they think of you.
Just take your current salary / hourly rate, add 20% or 40%, and there you have it.
People HATE buying a car, because the guy won’t quote a price. Why be a jerk?
Tell them how much you cost. Give them a little range, so they can feel they have negotiated you down a little from your top rate.
Posted by Greg on December 29, 2008 at 3:16 pm | permalink |
Some good comments and rejoinders!
The thing I'd have to say to everyone countering Penelope's advice is – have you ever tried it? I'd ask the HR and recruiters that, too, rather than speak to the hiring side.
I’ve been placed three in the last 10 years through recruiters. Twice I didn't get them to name a number first, and both times I could have received better compensation.
And remember, your starting salary affects your raises forever.
The third time, when recruiters called me I gave them multiple numbers for my current compensation. I'd start with the literal number and then translate that into an adjusted gross pay, taking into consideration the differences in work hours, overtime eligibility, vacation pay, personal days, and all other days off.
I told recruiters I wouldn't consider leaving for a net loss of compensation.
I think having this kind of spreadsheet handy, where you can see how your hourly value fluctuates based on vacation pay and overtime eligibility and parameters, gives you a lot of information to squelch bad offers. Also, if you have that interview where they've basically courted you but you don't know any of the details, you can explain compensation parameters for you.
For my current job, I called recruiters and asked them what skills they would need to see for the salary ranges I wanted to be considered for. I rewrote my resume and took on projects that demonstrated competence for the most in-demand skills.
I interviewed several rounds and when the recruiter said they were writing an offer, but it would be lower than the $10k range we had agreed I wanted to be submitted for.
I told him he’d wasted everyone’s time because I would not even hear an offer from him less than that, and if the other compensation factors weren’t tempting, even my salary floor wouldn’t be enough.
All of this is to say, that with recruiters, you should follow Penelope’s advice and STILL get them to name the number first. Do what I did — find the pay ranges and positions they have on offer and market yourself for those positions.
For people dealing with online submissions, there are still phones. You can call HR for a company or a recruiter and say, "Hi, I'm curious if this is a junior or senior position. I don't want to bother submitting if the pay range isn't appropriate for my skills and experience." Use Salary.com and other sites to appraise the range and factors that affect annual salary.
I even did this as a completely inexperienced college kid registering at temp agencies. I called and told them I had great skills and didn’t want to waste time if they didn’t have clients able to pay for my skills.
Everyone likes to say “depending on experience,” but it’s key to find out what the experience required before you even send them a resume.
Sometimes you'll find out they have more than one job. Or you'll find out that they might want to place someone junior for less money but could pay more for someone with your experience.
Get them to name the number and the requirements and total compensation.
Penelope’s point to get them to name the price first holds true here, especially for recruiters.
I've tried her advice. It works. I wish I'd had someone articulate it ten years ago!
Posted by Gib on December 30, 2008 at 3:21 pm | permalink |
Well, I suppose trying not to speak first of salary… maybe that would work in some cases, but – .
In my situation, I'm usually looking for some kind of fair increase compared with my current/previous job. For people in a specific industry, we all pretty much know, more or less, the ranges of most jobs in the local area.
So I would normally say, "My current salary is X".
If they can't beat my current salary, I'd hear about it quick.
If they can, I'd hear about that too.
I've had no problems saying my current salary.
I guess the attempt at getting the prospective employer to make an offer first is to see if you can get something more than a normal increase. That might be possible, and then again, it might not.
Often I've been asked "What's you current salary?" rather than "What's your salary range?".
I have heard of places that say, "OK. Bring in your current pay stub" before they make an offer. If you've verbally inflated your salary, you'd be stuck.
So, for me, I stick to my reality. If they expected to pay a lot more than I am currently earning, and I come – cheap', then it means they would not find it difficult to increase my salary next time raises come along.
–Joe
Posted by Joe on January 15, 2009 at 1:14 am | permalink |
I don’t think the problem comes from being the first one to give a number. The problem comes from not clearly communicating your worth.
Obviously, salary is a big part of the job-hunting experience. If it’s that important to you, you should be on the phone with the HR department before you even send in a resume. I’ve done this myself, especially with government/educational employers who list a salary classification. A five or ten minute call with the result of finding out the salary is too low saves me the time of spending an hour or more preparing a targeted resume, saves the company the effort of reading that resume, and can save us both the time of conducting an interview.
If you’re asked what you’re currently making, I’d suggest answering with your current salary and then indicating that you’re experience makes you worth more.
You should already have an idea what kind of salary to expect before you even send in your resume so that when you’re asked a salary range, you can give an intelligent answer.
Most important, however, is to know what your options are. Do you NEED the job? If so, why jeopardize the job by potentially alienating the interviewer? If you don’t need the job, then be honest about what you expect when you’re asked, and decide ahead of time whether you’re willing to make a counter offer if you’re not satisfied.
Posted by Vince on January 15, 2009 at 11:29 am | permalink |
I applied for a job working with a non profit. I have had some experience, but only graduated 2 years ago so I am fairly new or entry level. The non profit wrote back after I sent my application in asking for my salary requirements. I am struggling on my response because I do not want it to be too little, but also don’t want to ask too much. Any advice?
Posted by Dakota on February 9, 2009 at 11:39 am | permalink |
From my experience the size of the salary has less or nothing with one’s technical or professional level. It all comes with the ability to negotiate and knowing your price.
Posted by Andrew on March 14, 2009 at 10:48 pm | permalink |
This sparks some thoughts I’ve got to get out and organize before they dissipate. Much is made of salary negotiations, but bottom line is that for most jobs there will be more or less an industry standard range for that position. If you haven’t managed to figure out what it is until you are actually in that industry, you will eventually. If you are paid significantly higher than that, you become a mark on your employers balance sheet they cringe at if they even hired you in the first place. If you are paid significantly lower than that, you will be highly dissatisfied when you inevitably find out and lose motivation if not consider leaving. This isn’t good for the company either. If the job is to be any kind of long term prospect it’s in both the interest of you and the company to agree on a salary that is competitive by industry standards.
I’m generally not fond of adversarial “hardball” style negotiation. You’re looking for partners not adversaries. If this is the way you approach it, you’re still doing little better than a guessing game anyway. Ideally, you do a little “price shopping” research beforehand by looking at salary surveys and talking to people in the know. You aren’t really giving up much by stating a salary range at the upper end of what your research has revealed as the standard range. Maybe you’ll get extremely lucky and find a company that doesn’t have a clue and would be willing to pay way more, but I wouldn’t count on it.
Posted by Brian on March 17, 2009 at 9:53 pm | permalink |
Employers who ask for “a salary requirement” are not dealing in good faith. What employee in their right mind would negotiate against themselves? This new practice is just a way for employers to circumvent the acceptable tents of “an offer for performance.” Perhaps employers are not aware that they are laying the seeds for serious employee backlash who will respond by foregoing the Protestant Work Ethic if they feel they were undercut based on their educational background and experience.
Posted by Joanne Tomarchio on April 29, 2009 at 11:22 am | permalink |
oh, if i only had read this blog a few weeks ago…….things for me would be very different right now
Posted by Michael on June 2, 2009 at 5:23 pm | permalink |
I’m not too sure about this advice. What if you’ve done your research and have a very good idea about how much the job should pay? In that case, there could be a case for just stating something in that ballpark. If that dollar amount would make you more than happy, why not just go for it? If the employer comes back with something less, then you negotiate towards your number. Otherwise, the possibility of leaving money on the table doesn’t seem so bad if the money makes you happy anyway — Plus, you wouldn’t have to go through the stress of negotiation. Yes, it could be stressful for some people.
Posted by Steve Nguyen on June 24, 2009 at 1:54 pm | permalink |
There is no other way to “call” the “what is your salary requirement” except to say it’s the 21st Century way for
employers to undercut employees. Let’s be realistic here and admit that the tried and true method of advertising a job opening worked for decades and always included a job description/requirement and a salary amount which allowed a perspective applicant the choice to apply or not to apply based on that information. It sort of resembles a “contract” wherein an offer is made for a performance with a dollar amount or “consideration.” Government agencies are not permitted to “omit” a salary as it is considered “bad faith.”
Unless employees truly understand that they are being forced to negotiate against themselves they will unwittingly be placing themselves in a situation to be
exploited.
Posted by Joanne Tomarchio on July 15, 2009 at 10:55 pm | permalink |
I just went on an interview during which the employer asked me what my range is to make sure neither party is “wasting time with mismatched expectations”. I made the mistake of giving him a range. A week later I got the offer that was 3% (of the salary offered) lower than what I said the low end of my range is. Could I negotiate at least up to my low end? At that point, the offer would be acceptable to me.
Posted by cat on July 21, 2009 at 10:20 pm | permalink |
Any help would be greatly appreciated as I do need to either counter or accept before thursday
Posted by cat on July 21, 2009 at 10:21 pm | permalink |
I was asked by a professional recruiter about my salary expectation I replied “I would expect a salary that is in line with the level and responsibilities of the job, my experience, and the positive and significant contributions I can offer your client.” The next day I received an email from her stating the possible salary range of the position I applied for. She asked me “What is your current salary please?” Will it be right to answer her giving the exact figure I am presently receiving or should I not answer her question.
Posted by Neo on July 23, 2009 at 10:26 am | permalink |
I just stumbled across this posting, and thank goodness. I’ve been sitting here, heart pounding, waiting for a recruiter’s response to The Salary Question.
I blended a couple of the responses:
From what I’ve heard about xxxx — and my interest in the job — I can assure you that it will not be a waste of my time. I’d love to discuss the position responsibilities and work environment in more detail first. I’m confident that whatever salary you’re paying is fair and consistent with the rest of the market.
It worked. My interview is scheduled and I dodged another salary question. I am in debt. I always bomb in this area.
Thank you, thank you, thank you!
Posted by Kelly on July 28, 2009 at 3:19 pm | permalink |
As a recruiter, I think you should now be open. The point of not disclosing your salary is to get the company’s information. You’ve not done that. The ball is in your court, so move the conversation forward on your terms.
Posted by Maryellen on July 28, 2009 at 4:35 pm | permalink |
Excellent advise – I am going to pass it along to my network and especially a group called Job Angels on Linkedin.
Russ Kovar
Posted by Russ Kovar on August 27, 2009 at 2:27 pm | permalink |
Good advice but simplistic. As others above note, many if not most Web application forms demand a salary for your previous jobs. Many also require a desired salary range in an application — and they want numbers, the form kicks out “negotiable.”
Hopefully, a personal contact will bring an interview instead of the Web and then this approach can pay off.
Posted by Paul Hart on August 31, 2009 at 6:11 pm | permalink |
These are some great tips. It is hard not to fall in the “trap” and tell the person about to hire you what you expect. The best approach would be to let them talk first about what they are prepared to pay. Also, it is not hard to know about what the average company pays for a specific position. And yes if you cant agree on a salary there might be other things you can negotiate.
Posted by Investments on October 4, 2009 at 5:50 pm | permalink |
Regarding the “Previous Salary” question… I’m thinking of being strait forward and simply stating that I’m not willing to disclose that information. Anything wrong with that?
Posted by Doug on October 14, 2009 at 12:58 pm | permalink |
Go to Glassdoor.com, find your current position, and give them a range between mid and top of that level. Higher in range, of course, if the new job will be paying higher than the old. As for what range you will end up in with the new job, ignore that for now. After a year or two you can start pushing for higher figures.
Posted by orion on November 3, 2009 at 4:10 pm | permalink |
Well, I’m a Latin American living in Canada, I was shocked in my first interview in Toronto when one of the first questions being asked by the interviewer (by phone) was “what are your salary expectations”, when clearly I didn’t have a clue. In my experience in Latin America salary negotiation comes later in the process, not in the first interview. In another interview when the same question was asked, I answeared a range, and the recruiter told me that I should value my experience and post-graduate education, and lectured me that I should ask for much more, which left me a feeling as if I was an insect. Saying a lower salary expectation that the company’s range will discualify for the job, as being perceived as a second rate candidate. With that experience, I did some research as to find how much I am valued (payscale), and knowking my value it would then be my decision if I go for less or not.
Posted by Juan on November 18, 2009 at 6:53 pm | permalink |
This is very good information to know. It’s hard sometimes to ask about salary without sounding greedy, but it’s really what most are working for, right?
Posted by Medisoft on December 21, 2009 at 10:48 pm | permalink |
Hi everyone. I already passed the interview and negotiation process with the hiring manager. I am now exchanging mails to the HR people and they insist to get my current salary which I already decline twice to provide. But the hiring manager advise me that their HR needed the figures to come up with their compensation offer. Do I need to provide my current salary? Please advise. Thanks.
Posted by prime on February 21, 2010 at 11:34 am | permalink |
Prime – If they have asked for it twice, you will need to supply it – it is part of their process to acquire that information. If you lied about what it is, your integrity is on the line. If you did not lie – but just have not disclosed it yet, then just do it. The issue becomes “what are you hiding?” the human part of the process.
It’s as simple as this – you’re at a party and meet someone new. “so, where you from?” “Around.” “oh, you’re a local?” “no, I moved around a lot.” “Where’d you start out?” “I’d rather not say.” o . . .k, whatever. This conversation is over, because the person is being so odd and secretive. They clearly don’t care about engaging with the other person. It’s a simple question with a simple answer. Previous salary is a simple hiring/business question – not unlike, are you currently employed? who was your last employer?
Posted by Maryellen on February 23, 2010 at 4:08 pm | permalink |