The ultimate guide on how to answer salary negotiation

The ultimate guide on how to answer salary negotiation question

Perhaps the most intimidating question you are ever asked in an interview is, “What do you expect for this job?” Asking for money always makes one feel like walking on a tightrope: too high and too much, and might cost you the job; too low and you might sell out. Truth is, effective negotiation really is just a matter of preparation, strategy, and confidence.

Alright, let’s have a no-brainer breakdown on how to approach salary expectations, negotiating strategies, and a few tips on making an excellent impression with your answer.

Why Salary Expectations Are a Thing for Employers

An interview question is asked for a reason. Well, here are the reasons that it’s important to interviewers to ask about salary expectations:

There is a budget for every job category. They want you to go back with similar expectations so your wants don’t differ from theirs.
What You Think You Are Worth: The perception the employer develops on how you regard your skills, experience, and qualifications by quoting a salary range above it. What they are trying to do is to determine if you have made enough research and are aware of your market value.
Negotiation Skills: The way you word compensation might tell them if you’re good at negotiation, and most jobs, especially business or leadership, are high-intensity negotiations.

Knowing the above makes us want to jump right into the best approaches:

Step 1: Do Your Research

As one walks into that interview room, he/she should know the salary range for that position. The research needed will include the following:

Industry Standards: Use tools like Glassdoor, Payscale, and LinkedIn Salary Insights to find professionals in your industry who have relevant experience and skills but have performed similar work in similar roles.
Location: Of course, it widely varies by location. The difference between being paid as a software developer in San Francisco and being paid as one in a smaller city is huge. Add cost-of-living adjustments to that.
Company size and finances: Of course, many big companies do have outstanding budgets that oftentimes equate to higher salaries. But conversely, some smaller companies may offer you flexibility, possible fields of advancement, or perhaps some other type of compensation for the seemingly lower wage.

Knowing this will better prepare you for negotiation when you present a market-value salary for the position in which you will apply.

Step 2: Put off the Question When Necessary

It’s best to delay talking about salary in an initial interview. You want the interviewer to be debating your qualifications and fit for the job, not your salary. Use one of these deflection techniques if the interviewer asks early in the interview:

“I am willing to discuss compensation once we have discussed the role and responsibilities more generally.”
“I am open-minded, and first want to lock in on the opportunity that is appropriate for my skills and experience before discussing dollar figures.”

In doing this, you keep a focus on value brought by you to the organization rather than the dollar figure.

Step 3: Provide a Salary Range (When Relevant)

You are going to have to be direct about your salary expectations at some point in this process. If the interviewer continues to push you for a specific figure, providing a salary range is normally better than being too firm. Here is how you will want to structure your response:

Anchor to Your Research: Use what you have researched to anchor in a realistic range.
Leave a little wiggle room: Instead of a point with some maneuvering room in the negotiation, use a range. For instance, you may target $75,000. Then you will say, “Based on the study and my experience, I am seeking something in the neighborhood of $70,000 to $80,000.”
Flexibility: Frame your response using a tone that suggests you are open to discussion. For example, “I am flexible and willing to discuss compensation on the basis of the whole package including benefits and opportunities for growth.”

Example Response:

Based on my research and my knowledge of the market, I would place the number at about $70,000 to $80,000, but of course, am more than willing to discuss further with a sense of what’s involved in the role as well as associated benefits.

Step 4: Tie Your Salary Expectation to Your Value

Salary negotiation- you should remind the organization of the value you bring to its organization. Here is how to ensure you highlight your relevant skills while negotiating compensation:

Reiterate Your Qualifications: Before giving the actual number or range, be sure to focus on your relevant skill, experience, and qualification that will justify why you expect certain compensation.
Align your skills and experience with Company Needs: You explain how they will directly contribute to the success of the company. You understand their challenges, and you can point out possible solutions to those challenges.
Past Accomplishments Description: Whenever possible, try to mention whatever has been accomplished in the past speaking well of you. Have you helped a previous company increase revenue, or have you improved business processes? Tell them about it.

Sample Answer:

“With five years of project management under my belt, cross-functional teams managed, and projects delivered on time – I think $85,000 to $95,000 is a good salary range. Of course, open to discussion based on all aspects of the role and benefits package.”

Step 5: Deal With Pushback Gracefully

Sometimes, the offer given by the potential employer may not be within your expected remuneration. So don’t panic. Here is what you should do.

Stay Professional: If the budget of the company is far beneath your expectation, you need not get anxious. Don’t take it personally if the company budget is below your salary expectation. Remain normal and professional.
Require non-monetary benefits: Companies usually offer benefits that can somewhat offset the base salary. Get the bonus, stock options, flexible timing, and professional training among others.
Negotiate: Politely ask if there’s room to move on the budget or if the salary can be reviewed after, say, six months probation depending on performance. You could say, “I know this is a bit below what I would expect. Is there any wiggle room here, or can we revisit the salary after six months based on performance?

Example:

“Thanks for the offer and for your reasons; I see that this falls within your budget. Well, I am pretty sure that the skills and experience that I have to offer would add a whole lot of value to the team. Are there any salary consideration adjustments, or even bonus or salary review after some time?

Step 6: Don’t Undervalue Yourself

One of the biggest mistakes most candidates do is undervalue themselves so as not to lose the opportunity of getting a job. It may seem the right thing to say yes to a lower amount just so you get the offer, but in the end, you’ll definitely feel the frustration. This is why you can’t undervalue your worth:

Creates a Precedent: If you take less money now, you will struggle with negotiating a raise later.
Reveals Self-Worth: Asking to negotiate salary often translates to showing how much you worth. More likely than not, if you undervalue yourself, then the employer is left with wondering at your low self-esteem or capabilities.
Sets Future Compensation: Once you set the opening salary, more often than not, it determines your future compensation that includes promotions and bonuses. The chance of having lower pay for all your years on the job by starting low is not great.

Step 7: Practice Salary Negotiation

Like any interview skill, practice makes perfect. Role-play a conversation of salary negotiation with a friend, mentor, or career coach. The more you are comfortable talking about salary expectations the more comfortable you’ll appear during the interview.

Here are a few scenarios to get you ready:

The interviewer asks you for your salary expectations up front.
The company offers you a salary lower than your expectations.
You get paid within your range, but you want more of a negotiation number or benefits.

Step 8: Post-Negotiation – What to Do After Agreeing on Salary

After agreeing on a salary, then you must be sure to:

Get the Offer in Writing: Always ask for a written offer letter that will specify the salary, benefits, and any other form of compensation term.
Mention other benefits: State all other benefits, which are not pay benefits, such as bonus, health insurance, any vacation days, and stock options, etc.
Professionalism: Whether you are going to accept the offer or decline it, keep your professionalism. You know never when the employer may meet you again.

Conclusion

It’s a very intimidating process, but negotiation over salary is an undeniable part of the interview process. Armed with research, knowing when to defer the conversation, providing a salary range, tying your expectations to your value, and how to professionally handle pushback in a negotiation, you’ll be ready not only to approach the “What is your expected salary?” question with ease and confidence but to negotiate for the best possible compensation package.

In other words, negotiation about salary is not only to have a paycheck but rather because of the fact that your salary should equal what one becomes worth to an organization based on the skills and experience provided.

For more instructions on answering interview questions – click here