Do you get choked up when asked about your salary during an interview? You’re not alone. That’s what I talked about this week on US News and World Report’s OnCareers blog. Here’s an excerpt:
It’s hard not to panic when asked about salary during a job interview—and it will inevitably come up during the interview process. This can be especially difficult when switching industries or moving to a new city.
But how you respond to questions about how much you want to make will directly affect your future compensation package. That means that gracefully dealing with salary questions is one of the most important interviewing skills you can master.
Here are some key points to consider when discussing your salary requirements with a potential employer:
Timing. When you’re asked about salary early in the process, recognize it as a screening tool to either bring you in for an interview or eliminate you from consideration. For this reason, do not include your salary requirements in a cover letter.
Instead, salary discussions should come toward the end of the interview process, when the company already wants you and understands your value—when you have more leverage. Salary ranges tend to be more flexible once the employer knows you’re the perfect candidate. Few hiring managers will let their perfect candidate get away because of a small gap in salary range.
For the remaining four tips on how to evade the salary questions, check it out on the blog: Tips for Evading the Salary Question
Something I've always wondered about is how to handle the "salary chat." What do you do/say when asked how much you made and how much you want to make? I always found the second especially confusing when you know the job you are applying for has a wide range of salary options.
A specific instance that I'd love to know how to improve is what to do when switching from a lower paying industry to a higher paying industry. You know that you could make more at the second job, but it's hard to say well I used to make $100 dollars and now I want to make $300 (the going rate for the new industry job) -- how do you justify the jump and/or not wind up getting paid less than others would for the same position.
It's hard not to panic when asked about salary during the interview and it'll inevitably come up during the interview process. How you choose to respond to salary questions with your prospective employer is a determining factor in the compensation package you'll be offered.
Your future employer understands that you have expectations and a base you must maintain. When it comes to the salary game, if you're the first party to name a price, you're putting yourself at a disadvantage. You'll give the company the power to make an offer based on your previous salary, not your fair market value. If you're underpaid, you risk the hiring manager devaluing your skills and not being considered for the job. If you state a number too high, you risk pricing yourself out of the job before the company fully understands your value.
So be careful with what you say and how quickly you jump into these negotiations.
Penelope Truck give us some suggestions on how to handle salary questions in her post, The Answer to the Toughest Interview Question.
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.
Avoiding these questions makes most people nervous, so rather than step around them, they answer them and spend the next week beating themselves up over it while they wait to see what they're offered. It's understandable that you and the company don't want to waste time if salary expectations are too far off. Just remember that these details tend to become more flexible as the interview process progresses.
If you find yourself in that position and you feel like you need to give an answer to the question, try to find out the budgeted range first and then keep it open for discussion. If all else fails, it's certainly okay to give a range, but don't pinpoint a specific number. You could say "I assume [name of company] in [geographical region] pays between $80,000 to $95,000 for a position with these responsibilities. Is that what you had in mind?"
Preparation is key for these types of discussions. You'll find the best salary data through specific industry salary surveys. Recruiters with whom you have relationships may also be good sources. Be careful with the general salary sites - I find they are usually off a bit from what the industry pays. Same goes for those cost of living calculators if you are considering relocation, especially in a high cost city. The real salaries simply do not meet the difference.
The rules change if you work with an outside recruiter for the position. A recruiter will require your most recent salary history. Their clients expect them to handle your salary negotiations and it's important for them to know where you are and where you want to be to make the offer process move forward smoothly.
Photo credit: Roby72
If you didn't catch this ABC 20/20 episode aired on January 16th, 2009, you should. It's an interesting and timely look at salaries and you market value in the workplace. You can catch it on ABC news in four segments.
I was particularly interested in the first two segments about keeping salaries secret and whether college is worth the investment. I plan to comment on both in follow up posts.
Should Salaries Be Secret? - Part 1 Is it okay to share your salary in the workplace? Why is this a banned topic on the job and if we were more open about our salaries with others, would it change how we're compensated?
College: Worth the Price of Admission? - Part 2
It is said that people who graduate with a college degree on average earn $1 million more than non-graduates. Is this true? And is the college degree really worth it?
Self Worth, Beyond the Paycheck - Part 3 This segment follows laid off TV news anchor Ernie Bjorkman as he transitions to a high paying news anchor career to a new career as a veternarian tech. What happens to your self-worth after a layoff?
CEOs and Celebs: Making Big Bucks - Part 4 What is it with these high CEO salaries? Are they really worth it?
Did you relate to any of these segments? I'd love to hear your thoughts.