Why do companies ask for desired salary
It’s common during your interview or screening process to get the question—”what is your desired salary?” But while you might expect this question—and even know how to answer it—understanding the why behind it can help you navigate it better.
Why do companies ask for desired salary?
The main reason a recruiter or hiring manager will ask you for your desired salary is to simply check a box to make sure you aren’t asking too much or too little compared to the budgeted amount for the role. If you ask for too high of a salary, you may price yourself out of another interview (or an initial interview if you answer the question on an application). And if you answer with too low of a salary, the company may question whether you have enough experience or are a good enough fit for the role. If you aren’t informed well enough to answer the question within the right range, you can appear out of touch or inexperienced—immediately disqualifying you from the opportunity.
When do companies ask about your desired salary?
Companies may ask about your desired salary during the application process, in a screening interview with a recruiter, or after you’ve been through the interview process with a hiring manager and other members of the team. The reality is that you may be asked about your desired salary at any point during the hiring process. Make sure you have a strategy on how you want to answer the question. Again, for tips on how to answer what your desired salary is, read this article.
How to avoid the desired salary question
It’s possible to avoid giving a desired salary number to a recruiter or a hiring manager if you go about it in the right way. In most situations, the question is simply asked to make sure your number is aligned with what is budgeted for the role. Using this information, one technique to avoid the desired salary question is to put it back on the interviewer.
Here are two examples:
Leaning on the fact that you’re negotiable on salary:
“I’m negotiable on total compensation—I’d love to first make sure the role is the right fit.”
Leaning on the fact that you want to make sure the role is the right fit:
“I don’t have a hard number in mind for my desired salary. I’m really interested in the total compensation offer and making sure the role, the company, and the team all feel like the fit.”
What to say when you can’t avoid the desired salary question
In some scenarios, recruiters or hiring managers will press you for an answer to the desired salary question. In this case, when you can’t avoid answering it, you can attempt asking what the budget is for the role.
Here’s an example:
“I don’t have a specific desired salary in mind. I’m interested in making sure the role is the right fit for me and my experience. Can you share what you have budgeted for the role?”
The recruiter or hiring manager may just give you the range that they have allotted for the role. In this situation, if the range feels close to what you were looking for, you can say that the numbers are within the right range for you.
Here are a few reply examples:
“That range works great with what I would expect.”
“Something in that range works great with my experience and the role.”
If you are pressed further for a specific number, you may need to offer a number or a range to answer the question. In this situation, you need to have an answer ready for your desired salary. Consider the tips here.
What should you include in your total desired salary?
It’s important to have a good idea of your desired total compensation whether you have to answer the question or not—this can help you determine whether or not an offer aligns with what you’re comfortable accepting or rejecting. To get to this answer, you need to include all of the details that make up total compensation—not just a base salary number.
Consider the following list as you determine your desired total compensation:
- The role’s industry
- Your total number of years of experience
- The role’s location
- Any certifications or education you’ve acquired or completed
3 tips on how to talk about desired salary
1 - Anticipate the question before it’s asked.
Recruiters and hiring managers will eventually ask you for your desired salary during your interview process. Whether the question comes on the application, during a phone call, or in an interview, it’s a common question that most companies include as part of the hiring experience. The best strategy to be prepared for this scenario is to anticipate the question before it’s asked. Practice your response and know your answer (even if you don’t ever verbalize it).
2 - Avoid giving a specific number.
If at all possible, avoid giving a specific number. Once you offer a specific salary number, you have boxed yourself into negotiating near that number (or you’ve removed your negotiating power altogether). To get paid fairly, you need to ask questions about how the role is leveled, what the company’s comp philosophy is, and consider all of your years of experience and education that would impact your total salary. If you can leave the offering to the company, you can then negotiate a higher number (and be paid more fairly). Try to avoid giving a specific number when you are asked for a desired salary—do as much as you can to have the company offer a number first.
3 - Research typical salaries for your role and area.
While you want the company to offer a specific number first, you need to have a good idea of what you’re looking for before they give you an offer. To do this, you need to do your research. Talk to your friends and colleagues about their salaries, research typical salaries for your role and area, and get educated on the company’s philosophy on compensation. Do they pay at the 50th percentile? Is it the 75th? All of this information can help you determine what a fair offer will look like so you can make a good decision when the time comes.
Need more resources? Check out these links:
Can you lose a job offer for negotiating?
How to respond when a recruiter asks: “what is your salary expectation?”
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