Know Your Worth: How To Communicate Your Salary Expectations

How to tackle the salary expectation question

How do you feel about discussing salary expectations with your employer or recruiter?

Chances are, money talk gives you the jitters. But money conversations are a crucial aspect of job interviews and employment performance reviews. The trick is to learn how to navigate these potentially treacherous waters more easily and more confidently.

If you aren’t properly prepared for the question, your answers could jeopardise your prospects of a successful outcome. Whether that means settling for a lower pay packet than you know you’re worth or missing out altogether because your expectations were unrealistic, if you don’t approach the salary discussion in the right way, you could lose out.

Why do employers ask the salary question?

It is natural to question the motives of the hiring manager when they ask about your salary expectations. They may do it for several reasons.

A fixed budget

Many companies have a fixed budget for various positions that they can't stray from. By asking you this question at the interview stage, they want to make sure that they can meet the salary you expect.

Check your level of qualification

If you ask for a really high salary that is more than what other candidates ask for, or that the company can give, you might be over-qualified for the position. It's certainly not a bad thing, but the company will probably not be able to pay you what you request and deserve.

On the flipside, if you ask for a lower salary than the average salary in the industry, it might indicate to the hiring manager that you are less qualified and don't have the necessary experience.

Assess your self-worth

This question is actually an opportunity to show these interviewers that you know your worth and what you bring to the table. When you confidently state your salary expectation in a range that's appropriate for your skills and experience, it sends a message that you're not afraid to ask for what you rightfully deserve.

In fact, savvy companies actually prefer candidates who are confident in their value and can articulate the value they can add to the business. So don't be shy about stating your salary expectations - it could be the key to landing that dream job!

Best practices when negotiating your salary

A key thing to remember is that salary discussions are a negotiation. It’s a two-way street.  You will have expectations of your worth, but the outcome has to be mutually beneficial. 

Your aim should be to tackle the salary question strategically and to have a plan. 

Here are some important steps that will help you navigate what can be a delicate situation more effectively and avoid negative outcomes.

• Research industry standards and typical compensation ranges to establish a benchmark for your salary.
• Know your value. Your skills, knowledge, experience, qualifications and certifications are vital negotiating tools and you can use them to demonstrate your value and worth to a potential employer. This is a good reason to choose nationally recognised online courses.
• Be clear in your mind about the lowest salary level you are willing to accept and be prepared to walk away. This will prevent you from becoming distracted and making unnecessary concessions.
• Be confident when discussing your accomplishments. Highlight any specific achievements and professional experience that demonstrate how you would add value to the organisation.
• Consider the big picture. There can be other aspects to a package other than just remuneration (e.g. benefits such as parking, incentive schemes, salary sacrifices and professional development opportunities such as an online business administration course), so it’s good to keep an open mind.
• Show your willingness to negotiate and stay patient.  
• Always listen carefully and don’t be afraid to ask for the question to be repeated. This will give you time to clarify your thoughts and give a considered answer.

How to answer the interviewer’s question about your salary expectations

Planning, preparing and rehearsing your responses to the salary expectation question is imperative to maximise the opportunity for a satisfactory outcome. Make sure your resume is up-to-date and that you bring any documents to support your accomplishments or qualifications. 

It’s also really helpful to roleplay the interview situation with a family member or friend so that you can rehearse your responses.

Here are some useful examples of the types of answers you can give when faced with the salary expectation question:

Use delaying tactics to buy more time

“I’m very happy to talk about my salary expectations, but before we do so, would it be possible for you to give some more information about the role and the responsibilities? It would be really helpful to understand more about the organisation’s approach and expectations before assessing an appropriate salary range.”

Note the use of the word ‘range’ here which keeps things non-specific and doesn’t limit your options.

How to answer if the interviewer presses you for a specific amount

“Based on my research of the industry and taking into consideration my experience, expertise and value that I would bring to the position, I believe a fair salary would be around $X.”

You could also say that you’re open to discussing the amount/range further, especially in terms of the overall package and benefits.  Ensure that you can live with the lowest range and don’t price yourself out of contention.

Deflect the question back to the interviewer

“Thank you for asking the question on salary expectations. I’m keen to understand how my skills and experience match up to the salary range that you are considering for this position. Could you give some detail on the compensation structure and whether there is any flexibility on the package.”

Delaying tactics can buy you some time while you collect your thoughts - and can be an opportunity for you to reinforce your strengths and the value that you will bring to the position.

Highlight your skills, experience and accomplishments when answering a salary-oriented question 

“I’m hoping for compensation that fairly reflects the value I would bring to the role. I’ve researched jobs that require similar levels of experience and expertise and found that a salary range between $X and Y is standard.  I’m open to discussing these numbers further.”

Champion your worth, but always do it tactfully. Assertiveness is a good thing, but being over-confident isn’t. This is also a good way of alerting the employer that you’ve done your homework and, because you provide a range rather than a specific salary, it opens the door to negotiation.

A final word on tackling the salary expectation question

Whether you’re a newly minted graduate, a mature candidate re-entering the workforce or a seasoned professional, the money conversation is always going to come up during a job interview. You are your most powerful advocate, so the more prepared you are, the better. 

It’s essential to research and prepare yourself to answer the desired salary question and appear sure of yourself during a job interview. Make sure you have an answer in mind before the interview.

Make your job application stand out from the rest with the right qualifications. MCI Institute offers online business courses in Australia to help you refine your skills and add to your resume, which makes you a valuable candidate for any job you apply to. 

After completing a course with MCI Institute, you will be prepared for the job market and ready to ask for the salary you deserve!

Visit our website to learn more about the programs and courses we offer or click below to book a time to speak with us.