Question
We all know the question, “What’s your salary expectation?” Recently I was talking to a very nice recruiter who asked this question on our first call. I told him I’m looking for $X. The recruiter then spoke to the company about me, and the company basically said, “We can’t offer $X base pay but we can offer her a lower base $Y, and then offer $Z bonus on top.” So my question is, isn’t it unusual to be negotiating salary before I have interviewed? Does it then even leave room for negotiation at the offer stage, or will I be stuck with the numbers discussed? I have not come across this scenario before. I am just curious how you would advise to handle something like this in the future?
Nick’s Reply
There’s nothing wrong with everyone being on the same “money page” before investing a lot of time in interviews. Expressing your salary expectation as a range, rather than a specific number $X, is best. A range gives you room to maneuver later, while ensuring everyone is at least in the same ballpark.
But there’s more to it than just giving them a number or a range. You must give them tantalizing reasons to want to meet you so that you can justify why they should pay what you ask. You must also set the ground to justify possibly asking for more when it’s time to negotiate a job offer.
Here’s the logic and how to say it.
How to Say It
“I told you my salary expectation is $X [or in the range of $X and $X+$n]. The actual compensation I would seriously consider will depend on what the demands of the job are, and on the deliverables the company expects from me. So my compensation requirement could vary from $X depending on what’s required of me. If we’re in the right ballpark, I’m willing to invest time to discuss the job.
“So, please tell me ‘where it hurts.’ That is, what does the company need me to do, fix, accomplish, improve, deliver — and I’ll do my best to offer my outline of a business plan to do it. If the company isn’t satisfied with my plan, then they shouldn’t hire me. And if they don’t offer me enough money, then I won’t take the job. But as long as we’re in the ballpark, let’s roll up our sleeves and talk shop in an interview!”
Justify your salary expectation
What no employer (or recruiter) expects is that you’re going to offer to prove you’re worth what you want with a custom, but brief, business plan about the job. This will give you an edge over your competition, and in the salary negotiations that follow your interviews.
In other words, make the discussion about salary expectation a business proposition: “If I can deliver your desired outcomes, I’ll expect you to deliver my desired pay.”
Control the negotiations
Shape the above How to Say It suggestion to suit your own style. This is how you will leave the door open to negotiate after you learn the whole story about this job. If you can learn what they want — the expected deliverables, or “where it hurts” — then you can show you can do it. This can give you a lot of control in negotiations.
Please check this: Salary Negotiation: How much to ask for.
It’s also important to understand the anchoring effect, which upends the conventional wisdom that “whoever states a number first, loses.” When they ask how much you want, it will be to your advantage to know exactly how to state your desired salary.
I wish you the best!
How do you negotiate the money part of a job offer? Do you bring it up early, or do you avoid salary discussions until the offer stage? In your experience, how can discussions about salary cause a job-offer deal to “blow up”?
: :
I have had situations of take it or leave it, No negotiations. Is this telling me something about the job market conditions?
It might be telling you something about the company!
I tell my Canadian jobseekers that they will find useful anchor point information at Statistics Canada’s “Labour Market Information – Compare Wages” page (https://www.jobbank.gc.ca/trend-analysis/search-wages) which provides accurate salary ranges for a very high number of job types and locations across the country.
Does anyone know where to find a US counterpart?
Tim,
Here’s one source from the Dept of Labor:
https://www.dol.gov/general/topic/statistics/wagesearnings
Thanks.
Tim
In good faith negotiations it is best to know why the employer is hiring. Some employers don’t provide the why. Also there other benefits not mentioned. Maybe more flexible time off. Also other areas of compensation. Business market readiness plays a big role. Business culture plays another big role. Compensation conversation starts before you have even before you a meet and greet. If they start with no negotiations and you are ready for that you are ahead.
Nick,
Long-time readers know this isn’t the first time you’ve covered this topic, but it’s such a source of trouble that it should be revisited periodically.
As you’ve previously stated, if there is a wide mismatch in what the company is willing to offer, one should immediately cease negotiations and move on. That saves everybody time. It’s also important to note that some companies simply can’t offer the salary you seek for legitimate reasons. This leaves the applicant a wide range of choices because one can often bargain for extra vacation, performance-based bonuses or even help with transportation costs. Be creative in your negotiations!
When you prove that you are worth the extra money you are requesting, a smart company will come through. A clueless one will lose you to a competitor, but that’s just business.
Sounds like u are dealing with amateurs if that’s the very first question. I think they are using it to clear any and all candidates who they might have to pay a market salary to.
I always ask what their budget is. I get normally a range from X to y. If this matches with my expectations, we go on with the talk.