How to approach the all important salary expectation question?

Answering the all-important salary expectations question the wrong way can cost you a job offer.

It can also put you in a confusing situation by forcing you to consider a job at a less-than-desirable salary. After all, in some circumstances, the only thing worse than failing to get a job offer after an interview is failing to get an offer that’s sufficiently in line with your salary expectations.

Why is it such an important question?

People often wonder what the big deal is around 'the money question'. Yet, job seekers often find it incredibly difficult to answer.

Not only that, but answering the question with a salary expectation far higher than the interviewer had been thinking of offering can change the mood of the process. Therefore, this has been a daunting hurdle for many job seekers, often leading to undervaluing their skills or demanding too much.

However, the landscape of salary negotiations has evolved dramatically with the advent of AI and increased pay transparency. Today, job seekers have access to more information and tools than ever before to determine their market value.

What are your salary expectations?

Always remember, if this is asked very early in the process, you haven’t necessarily had the chance to showcase your skill set or explain why you feel you would be the best fit for the company.

Employers or recruiters could screen candidates with similar skills. You don’t want to price yourself out of a process by giving too high a number without selling your skills.

If you provide a salary range, always ensure your lowest range is one you can live with if it is what they offer and are unwilling to move.

Understanding your bottom line (BATNA: Best Alternative To a Negotiated Agreement) is crucial. Active listening is essential to gauge the employer's priorities.

• Anchoring: Establishing a desired salary range early in the negotiation can influence the final offer.
• Concessions: Be prepared to make concessions, but avoid giving in too quickly.
• Counteroffers: If the initial offer is below expectations, confidently present a counteroffer supported by your market research.

Understanding Your Market Value

Accurately determining your market value is essential for successful salary negotiations. While traditional research methods provide a foundation, modern tools offer more precise and up-to-date insights.

Traditional approaches, such as industry reports from Salary.com, Glassdoor or Morgan McKinley salary guide, and networking within your field can offer a general understanding of salary ranges. For instance, a software engineer might consult industry reports to understand average salaries for backend developers. However, these methods might not reflect the current market or account for individual factors like specific skill sets or location.

If you are working with a recruitment consultant in searching for a new role, ask what their advice would be in terms of salary. They will be able to best advise you in terms of what your value would be and how to approach this question.

AI-powered salary tools provide a more accurate and personalised approach. Platforms like Paysa or SalaryExpert utilise real-time data, considering factors like experience level, specific skills, location, and company size to generate tailored salary estimates.

Pay transparency initiatives, like those adopted by some companies, offer another valuable resource. These initiatives help reduce salary disparities and empower job seekers by providing information for similar roles. If a company publicly discloses salary bands for software engineers, it can help candidates negotiate more effectively. Do your research on your market value and utilise tools given to you online, such as our salary guide, to understand your value.

It's also essential to prioritise data privacy when using online tools. Safeguarding personal information and verifying the legitimacy of platforms is crucial for a successful negotiation.

By combining traditional research, AI tools, and pay transparency data, job seekers can comprehensively understand their market value, strengthening their negotiation position.

Negotiating what you’re worth

So you got the offer – great news! Until you see they have under-offered you...

An offer is another step in the process. It is a starting point; sometimes, it is even how a company tests the waters regarding what you will accept. Show appreciation and enthusiasm for an offer, even if it is much lower than expected.

Effectively communicating salary expectations is a delicate balance between assertiveness and tact. Understanding the appropriate timing and phrasing can significantly impact the negotiation process.

When providing a specific salary range, consider factors such as your experience, skills, and the job market. Researching industry standards and competitor salaries can inform your expectations. It's essential to present your salary range confidently, emphasising the value you bring.

Be prepared to negotiate outside of the base salary. For example, you can always look for health benefits, a bonus structure, flexible working hours, etc., instead of monetary value.

AI-generated data can significantly bolster your negotiation stance. You can present a compelling case for your desired compensation by leveraging AI insights. For instance, AI tools can identify industry trends, pinpoint skill gaps, and quantify your work's impact. This data-driven approach allows you to present a well-supported argument for your salary expectations. However, it's essential to remember that while AI insights are valuable, your skills and experience remain the core of your worth.

Of course, if they offer you what you had hoped for and you love the role, it’s an easy decision to say yes! Don't negotiate if you don't have to.