You’re called in for an interview at your dream job. Everything is going well. You’ve knocked every question out of the park until you’re asked: “What are your salary expectations for the role?” Oliver Cooke, executive director, head of North America at Selby Jennings says many interviewees struggle with giving a response. He shares the five things job applicants should to do when discussing compensation with potential employers:
Make it clear from the beginning
If you’ve done your homework, the salary discussion should not phase you. The real work should have taken place before you got to the job interview. Cooke says it’s important to make your compensation target clear when you fill out the initial application. He says employers should be just as transparent with applicants once they’ve begun the interview process.
Ask a question to kick off
If the employer inquiries about your compensation requirements, Cooke says you can take control of the discussion by asking them their target salary range. Whether you are in the preliminary stages or later in the process, he says employers should be able to give that information to you. If they don’t, Cooke says that should raise alarm bells. What if the employer asks you to divulge your current salary? Some states and cities have made it illegal for employers to ask that question.
“They cannot base the compensation of your job offer off of your previous history,” he says. “The idea behind the law is to reduce the gender pay gap. That has put a lot of the power back into the candidate’s hands from a negotiation perspective. We’ve seen people get really big salary increases, particularly some women candidates that were perhaps underpaid in their role. We’ve seen 60 to 100% increases on a base salary. This is what the law is intended to do.”
Should you reveal your current salary?
As mentioned above, salary laws in some cities and states indicate that employers cannot ask you about your current compensation. However, Cooke says in some instances it may be okay to share your salary information.
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“It depends on the situation,” he says. “With the current salary law, if you are aware you are fairly compensated for the role you are in, then it’s okay to divulge your salary. That’s going to give the employer more reason to give you a bump up from where you currently are. However, if you’ve done your research and you realize you are underpaid significantly, then I would probably not reveal my salary. You don’t want that to be a benchmark for how they base the offer.”
Suggest an exact number
Speak to recruiters and other people in your industry to make sure your salary expectations are realistic. Cooke says job applicants should have compensation discussions from an informed perspective.
“Make sure you don’t scare the employer off and price yourself out of the opportunity by saying a number that’s way too high,” he says. “But at the same time, you obviously don’t want to say something too low and cut yourself short on what you can get.”
When you are in final negotiations, Cooke says it’s important to give strong business reasons for any compensation you propose. Explain to the employer what you can bring to the company and the role. Emphasize your commitment to building a career and working for the firm long-term. He says what you shouldn’t do is suggest a range for your salary expectations. If you do so, the employer will always choose the lowest figure. Give them an exact number and aim for the mid to high range of the salary they have given you.
Have a walk away point
If the employer has made it clear they want you on their team, Cooke says your next step should be finding a middle ground. He says employers have a ceiling on how much money they will offer. Job applicants should have a similar limit on low they will go. While money should be an important factor, Cooke stresses that salary isn’t everything. A number of other factors can contribute to your work happiness such as the environment, the culture, the job location, the career progression and what you will get the opportunity to learn.
“At the end of the day, if all of those other boxes are being ticked, can you take $10,000 less on the salary, given that you will probably be happy in the long term?” he asks. “Just be aware of falling into that trap at the final stage. A lot of people do it. Try to take the whole opportunity in mind before you make a decision.”
Linda Bell joined FOX Business Network (FBN) in 2014 as an assignment editor. She is an award-winning writer of business and financial content. You can follow her on Twitter @lindanbell