How to Answer “What’s Your Desired Salary?” in an Interview

Are you getting paid what you think you’re worth? Salary is a common reason for people to switch jobs. And, it’s something that is top of mind for candidates during the job interview process. 

The salary discussion is something that all recruitment agencies in Toronto deal with regularly. As Canada’s leading recruiters, we are no different. It’s a topic of discussion we had with most of our 500+ hires last year and it will be one with candidates in the coming years. 

People often struggle to answer salary questions. We get it. Compensation is a tricky subject to navigate. You don’t want to show your cards first. You don’t want to be the first one to put a number out there. Below, we’ll discuss:

• The top things to consider about your desired salary
• When employees ask you about your desired salary in an interview
• How to answer “What is your desired salary?” in an interview
• Mistakes to avoid when answering questions about compensation

6 Things to consider about your desired salary

Give some careful thought to your salary expectations before you start the interview process. Even if you are going in for a screening interview, you should have an idea of your desired salary. Here are some things to think about:

1. Range: What is your salary range? What is a realistic high-end? What is your bottom dollar?
2. Concessions: Are you willing to make some concessions with your salary in exchange for other perks? If so, what are they?
3. Benefits: How important are benefits and other perks? 
4. The going market rate: What is the going market rate for professionals with similar experience and skills in your area?
5. Job title: How much does job title matter? Would you take a different title if it meant more money?
6. Earnings potential over time: Would you be willing to take a little bit less money now for greater earning potential long term?

When do employers ask about your desired salary in an interview?

Employers may ask about your desired salary at different points during the hiring process, depending on their preferences and the role. Some may even request you include your desired salary with the application. 

Here are 3 most common times when this question might arise:

1. Initial application or pre-screening: Some employers want to gauge if your expectations align with their budget early on. The question might appear as a required field in the application form or come up on an initial phone screen.
2. During the interview: Employers often bring up salary expectations to ensure mutual alignment before proceeding further. This could happen in the middle or at the end of an interview, typically after discussing your qualifications and the role.
3. After the interview: If you’ve advanced in the process, salary discussions might surface as the employer prepares an offer. They may reach out via email, phone, or during a follow-up meeting.

How to answer “What is your desired salary?” job interview question

Giving a great answer to salary questions starts with good research. You need to know your worth, communicate your value, and offer a strong case for your desired salary. Here are 7 things to consider when crafting your answer:

1. Do your research: Before the interview, research the average salary range for your position and experience level at that company or in your industry. This will help you give a realistic and competitive salary expectation. Make sure that you know your worth before entering any conversation about money. 
2. Have a walk-away number: Have a clear number in your mind that the employer has to meet or you will walk away. This number should be based on your research. 
3. Give a salary range: Always give a salary range so there is room for negotiation. Avoid stating a single number. A common tactic is to start high and ask for an amount that is above your walk-away number. For example, if you want to make $55,000, you could say your range is $55,000 to $65,000. 
4. Focus on value: Instead of focusing solely on your salary, emphasize the value you bring to the company. Highlight your skills, experience, and accomplishments that make you a valuable asset. What are the things that you can offer that other candidates can’t? 
5. Be flexible: While it’s important to have a salary range in mind, be open to negotiation. Show that you’re willing to discuss compensation based on the specific details of the job.
6. Don’t be the first to mention salary: If possible, let the interviewer bring up the topic of salary first. This gives you more information about the company’s budget and expectations.
7. Practice your answer: Rehearse your answer to this question beforehand. This will help you stay calm and confident during the interview. Think about common counterarguments employers could make so you’re prepared to address them. 

Remember, the goal is to have a conversation about compensation, not just state a number. By following these tips and practicing your answer, you can confidently negotiate your salary and get the best possible offer.

4 Mistakes to avoid when answering questions about compensation

Here are some common mistakes job candidates make when answering questions about compensation:

1. You tell them how much you were making with your current or previous employer: Don’t volunteer this information during the interview process. 
2. You bring up money too early in the hiring process: In an ideal world, the employer will bring up the topic of salary. If they don’t mention it during your first interaction, be patient. Wait until you receive a job offer if it’s not discussed during the interview. 
3. You undervalue yourself to get the job: Don’t accept a lower salary just to secure the job. If you do this you are undervaluing yourself. Have a salary that you will not go lower than and stick to it. 
4. Not understanding the entire compensation package: Base salary is often part of the total compensation package. So, be clear about potential bonuses, commissions, and raise schedules. 

A Final Word on Discussing Salary During Job Interviews

Navigating salary discussions during the hiring process can feel daunting, but with the right preparation and mindset, it becomes an opportunity to advocate for your worth. By understanding industry standards, determining your desired salary range, and practicing your response, you can confidently handle these conversations. Remember to emphasize the value you bring to the role, remain flexible, and focus on the broader compensation package beyond just salary. 

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