You’ve applied for your dream remote job and you’ve performed exceptionally well throughout the interview.
You’ve demonstrated to the interviewer and hiring manager that you’re the perfect fit for the role.
And it worked! They’re convinced that you’re just the candidate they need. There’s just one final question left…the question that fills us all with dread:
“What are your salary expectations for this role?”
This question can make or break your career…at least at this point. You’re worried that if you suggest too little, you might be underselling your skills and cheating yourself out of a potentially lucrative salary.
But if you announce that you’re expecting the highest end of the pay range, it might be too high for their budget, and worse, they might see you as out of their league and not offer you the job altogether.
So, what should you do?
Here is a step-by-step guide on how to approach this sensitive issue:
1. Understand Why They’re Asking “What Are Your Salary Expectations?”
First things first. You need to know why the interviewer—whether hiring manager or recruiter—is posing this question. It might sound obvious, but one reason they are likely to ask this question is because they are trying to assess your value, and one way to do that is to see what estimate you would place on your monetary value as relates to the job market. They are testing your level of experience and what expertise and value you would offer to their organization.
While they may provide a pay range when advertizing the role, it is likely that they will negotiate the salary according to various factors based on your experience and skills.
If you only have a two years of experience, for example, it’s best to go for the lower end of the range. With more years of experience you can increase your salary expectations in line with the middle of the range, where it feels comfortable enough for you.
Another reason a hiring manager would ask this is because they are working with a budget. They need to ensure that the pay you’re asking for, falls within that budget realistically.
2. Do Your Homework
Rather than leaving up to luck or chance, undertake due diligence and do your research of the job market and the salary expectations for your industry and specific role, including your seniority level.
You should even consider factors such as the city or state you reside in, or the city and state the employer is hiring from, as these can greatly impact average salary ranges, causing them to plummet or rise sharply due to greater demand or higher cost of living in certain locations. Even if you are applying for a remote job, location should still eb considered when it comes to salary ranges.
Excellent sources of average pay range information include salary calculators such as ZipRecruiter, Salary.com, Glassdoor, and Indeed. These may also provide you with information on expected pay ranges at the specific employer you are interviewing with. This helps with pay transparency on their part, and enables you to ensure that you are not being discriminated against due to personal characteristics such as age, race, or gender.
3. Assess Your Value
To assess your salary value, it might be helpful to use your last role (if it was in the same field or industry) as a benchmark. You might be comfortable asking for the same salary as the one you had previously, or you could demand higher pay—but it’s important to know why you deserve to be paid more.
Do you have a unique skill set that you can provide which is of high value to the new employer? Have you upskilled and completed certifications or a master’s degree since then? Was the last employer paying you unfairly, below the average range for someone with your experience and skill set? Did you acquire a significant breadth of expertise and accomplishments in your last job that justify your new salary expectations? Make a note of all these factors.
4. Provide A Range, Not A Fixed Number
When answering “What are your salary expectations?” it’s important that you answer with a salary range, not a fixed number. It’s similar to what happens when you ask someone a closed question versus an open-ended question.
Providing a fixed number (i.e., $90,000) gives room for the employer to outright say no, and there is limited scope to explore further. You might also end up cheating yourself out of higher pay, if the employer was willing to pay more. However, if you give them a range (say $90,000 to $95,000) they have some room to work with and can even offer you more than what you initially expected.
As a general rule, aim to provide a range that varies no more than $5,000 to $10,000. Additionally, it would be good practice to ensure that your desired fixed number is at the bottom of the range. Start from there, then add $5,000 to $10,000 as your maximum for the range.
So for example, if you want to be paid $90,000, start your range from that figure and end at $95,000 or $100,000. This ensures you never get paid any less than your minimum expectation.
While sharing your range, be sure that you make it clear that you’re happy to negotiate and discuss further. You might also use this as an opportunity to say that you’re OK with reconsidering your salary range if the right benefits and total compensation package was in place.
This perfectly segues into my next point:
5. Consider The Entire Compensation Package
Last but not least, remember to take the entire compensation package into consideration. Think about other benefits that you would potentially be willing to sacrifice part of your salary for if needed. What benefits matter the most to you? Healthcare? Stock options? Bonuses? Remote work? Learning and development or work-from-home office stipend? Factor these into your salary negotiation with the hiring manager.
Occasionally, the hiring manager might say, “We will revisit this later, according to your performance in the role.” In this case, if you feel comfortable with everything else and there are no red flags, go for it—but be sure to confirm in writing when exactly your pay will be reviewed for a potential increase. Have a transparent discussion to understand what the expectations are for you in your first 90 days, six months, and one year into the role, and what the criteria is for increased pay at your pay review.