Question
I have an interview scheduled next week with a leading bank, and I am a very good fit for the role in corporate middle management. Based on conversations I’ve had with people that work at the company and people that have turned down job offers there, I expect a low salary offer. The HR recruiter asked me what salary I expected, and I talked around the question without giving a number, ending with, “I really need to think about that because it depends on multiple factors.” She requested that I get back to her with my number. Since I have the interview scheduled should I wait and let them make the offer (assuming they do)? Or should I preemptively tell her a number that is slightly above what I believe to be fair based on research (not on my opinion of myself)?
Also, is there a way to set the anchor on the high side without sounding like I’m full of myself? Thanks for your help.
Nick’s Reply
The unknown factor is HR’s predisposition toward low salary offers. Even though you’ve been told they make low salary offers, you don’t really know how this HR person will handle the matter. So anything you do (or don’t do) presents a risk. Including doing nothing at all. So I’ll tell you what I’d do — but you must use your judgment and any other information you have at your disposal.
Avoid a low salary offer
I agree you need to set an anchor, but you have already accepted the interview. If you learn during this interview what the job is really all about, you should be ready to quote your desired salary range when your meeting ends. If you need an additional meeting to fully understand the work, I’d ask for a follow-up interview and explain that then you’d be happy to give them a desired range.
How to Say It
“But I can’t do that until I know in more detail what the job entails. Specifically, I’d like to discuss what you would need me to accomplish at milestones of three months, six and 12, and what opportunities would enable me to do the work in a way that adds to your profitability.”
You could also ask them what range they have in their budget for the job. (Fair play, eh?)
Then, once you know what is their business plan for the job, I’d tell them the salary I expect is between $X – $Y, with a range of about 5%. This is a reasonable way to use the anchoring effect to your advantage. I’d add that you’re not playing negotiating games — this is really what you’re looking for, since they asked, and you’re prepared to justify it.
Don’t play the “high-low” game
Now the hard part: You really must be ready to justify your desired range. You must also be ready to tell what the “multiple factors” are. I like to lean on “how I’m going to do this job more profitably than you expected” as a big factor. (Please see Stand Out: How to be the profitable hire.)
To avoid the high-low salary game, I’d keep the X-Y range tight. And I’d be ready to accept $X if they offer it. But I would not go in high just because you expect they will come in low. (That is playing games!) I’d actually give them a range you’d accept, and even say, “If your offer is in this range, I accept it.” Making this kind of preemptive commitment is a very powerful negotiation tool. It establishes your desire to take the job, which is always a concern of an employer. Of course, you must have already satisfied yourself that you really want this job.
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If it’s a low salary offer, be ready to walk
If they come in low, you can easily say, “Well, you asked me, and I told you, and I wasn’t playing negotiating games.” Then you must be ready to walk away — unless they make an honest effort to “meet you in between” that you find acceptable. This puts the burden on them.
If you find they will not work with you on the range, then I think you must conclude that these are not going to be great people to work with. Don’t discount the information you acquire about them through this process — you will have to live with these people a long time. Think carefully about that.
Set an anchor early when you can
You’re wise to think about the anchor effect, but at this point, I think it’s hard to set an anchor that’s higher than what you’d really accept. If avoiding a low salary offer is really possible with an employer, I believe you need to set the anchor much earlier in the process — when you first start talking and before you agree to interview.
As I said, you must use your own best judgment. Every situation is unique, so don’t beat yourself up about handling it perfectly. The scenario — and your salary requirement — will likely change as you get more information about the job and the company.
I wish you the best.
Would you interview for a job if you knew in advance that the offer would very likely be low? How would you handle it? Have you ever been able to negotiate a salary meaningfully higher than an employer offered?
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I’ve done that for years. I totaled up what it would take for me to take the job. Sometimes, we negotiated and exchanged salary for time off or stock, but I’ve always seen within 5%. It works.
And I try to do as much as possible with my future manager.
I would interview since one really never knows what just another really cheap bank is thinking until heard directly.
What I have done. I ask what their salary philosophy is. is it to pay the lowest possible salary or are they in a situation where they really haven’t got the money. if it’s pay a low a salary, I walk and I make it plain Why. If they don’t have the money or claim so, I tell them that’s all the more reason they should hire me at my higher salary. Because I bring in the money.