WCT #76: What Are You Looking to Earn?
Three Minute Read
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Compensation expectations are one of the trickiest questions that come up during a job search. That’s because negotiating it is a bit of a dance. Fear not! Here are six effective approaches to help improve the outcome.
By the way, some recent trends play to your advantage. Given the increasing illegality of asking about your previous compensation history, gone are the days of candidates being asked about it. Also in the candidate’s favor is the increase in salary transparency laws, which require companies that post jobs to provide expected salary ranges for roles made in good faith.
On to the tips.
1. Turn the Money Question Around to Them: Company: “What is your desired compensation?” Response: “You hire a number of project managers (or whatever role is in question.) What do you think is fair compensation for this role?” This lets the company go first, which is generally a good negotiating tactic.
2. Defer the Conversation: If you are pressed further, and it’s early in the hiring process, try to kick the can down the road. Let them fall in love with you during the recruiting process. Push off the money talk. Say, “I’d really like to learn more about the roles and responsibilities of the job before I can really assess my value to the company.”
3. If Pressed Further for a Number: You could ask, “Could you give me a ballpark range of what you pay for this role, and I’ll tell you if it’s worth continuing the discussion?” This is often what the hiring company is interested in knowing. It’s not worth putting the candidate through the recruiting process if you are too far apart. This question also has the advantage of having them go first.
4. If They Don’t Go For #3: If they continue to push, don’t give a point figure. Give a range. Understand that they may very well come back with an offer that is the bottom end of the range. After all, that’s what you said is the least you would accept! So think hard about the range you offer up. You probably want to pick a low end of the range that’s a bit above the minimum you would take.
Do your market research first. Some good sources are Glassdoor.com, firsthand.co, PayScale.com, Salary.com, and conversations with people in the industry, family and friends to gather intelligence. And remember that you are not bound by what you say at this point.
5. Keep in Mind that Compensation Isn’t Just About Base Salary: There may be other forms of compensation in the mix beyond salary. Bonuses, including those for sign-on, moving allowances, commissions, profit-sharing, and benefits could be on the table. Stock or stock-based compensation may also be part of the package. Consider them when deciding what works for you. Some people may accept a lower base if they get meaningful stock incentives.
6. Practice Responses: Practice your responses to salary-related questions. This can help you feel more confident and articulate during the actual interview. Set up mock interviews with friends, family, or coaches 😎, and simulate various scenarios to prepare for different negotiation tactics.
The Bottom Line
While many people get tongue-tied over being asked about compensation when interviewing for a job, you can use this sequence of responses to keep yourself in a better negotiating position. Practice makes perfect in any situation that some people find unnerving, so the more you have this kind of conversation, the smoother you’ll be.
I coach and advise people to land amazing jobs and manage their career journeys. I also transform resumes and LinkedIn profiles to attract more interviews and offers. Learn more about my career coaching and contact me or request a free 20-minute Career Solutions Call.