“What are your salary requirements?” This is one of the complex questions a recruiter is likely to ask during an interview. As a result, you are torn between stating a high amount that may hinder you from getting the job or a low amount that may end up being unfair based on your level of expertise. This is why it is pretty important to learn how to handle crucial interview questions. Doing so will make it easier to prove to recruiters that you are the ideal candidate. This step-by-step guide will help you understand how to properly handle salary requirements questions. It also provides you with some vital interview tips to remember. So, keep reading.
What Are Salary Requirements?
Your salary requirement is the compensation value you’ll require for accepting a placement. The salary expectations depend on several aspects, namely:
- Level of skill
- Salary history
- Previous work experience
- The scope of the industry
- Cost of living
Your employer may request salary history besides your salary requirements during the screening process. Salary history is a document containing previous earnings, including the company name you worked for, remuneration status, job title, and benefits package. Unlike salary history, your salary requirements are expectations of what you are likely to earn in the next position.
Why Do Employers Ask for Salary Requirements?
Potential employers ask what your salary requirements are to help determine whether your salary expectations align with the company’s budget. So, your answer enables recruiters to determine whether your salary demands match your skills and experience.
Therefore, you must really understand how to answer this question perfectly. You should note that if you state a figure higher than your potential employer’s expectations, you will likely be phased out. On the other hand, if you state a significantly low amount, the hiring manager might think you have inadequate skills or experience required for the role.
Is It Acceptable for Your Recruiter to Ask for Your Salary Requirements?
You may be asked to state your salary requirement by a recruiter as part of the hiring process. However, some cities or states restrict employers from seeking remuneration information during recruitment.
How to Calculate a Fair Salary Range
Various factors govern your salary metrics. Below are some of the factors to consider to help come up with a great salary requirement:
- Years of experience. Having many years of experience in a job role is deemed to have a higher value in the job market.
- Career Level. The higher you get in the career hierarchy, the higher the remuneration value. So, for instance, if you’ve clinched the managerial level, your salary is expected to be higher compared to an entry-level role.
- Geographic location. If you reside in an urban area, the salary requirement is expected to be high due to the expensive living conditions.
- Education level. A Ph.D. holder will likely anticipate a higher salary than a bachelor’s degree holder. However, it’s imperative to keep the employer’s requirements in mind. If the job listing doesn’t explicitly demand a high education level in the requirements, the employer’s salary anticipation may not be high.
- Skills. Some skills are highly demanded in the market compared to others. For example, you might quote higher salary requirements if the role involves special software engineering or programming skills.
- Licenses and certifications. Some industries require you to have certain certifications and licenses to ensure credibility and professionalism. So, if you have the needed credentials, you are expected to state a high salary requirement.
These crucial tips will help determine how much value you bring to the table and how much money to charge.
Salary Requirements: Include or Leave Out?
If salary requirements are exempted from your job listing, then avoid mentioning them. The topic of what your salary requirements are should always come from your employer. So, don’t answer a question that has not been asked.
However, if your hiring manager asks for salary requirements on your application, ignoring the request might rob you of the chance of coming out as the ideal candidate. Recruiting managers prefer candidates who follow instructions.
Tips for Including Salary Requirements (with examples)
Here are some great tips to use when the employer asks for your salary requirements:
- List a salary range. When a recruiter requests you to include your salary requirements, quote a salary range instead of a specific amount. A range provides flexibility and prevents you from being screened out.
- State that your salary requirements are negotiable.
- Avoid mentioning an exact salary value. Although not the best idea, you could avoid quoting a specific figure altogether. This might help leave the salary discussion open for discussion during the interview.
Here are some examples of how to apply these tips:
Considering my expertise in the field and salary averages for the position, I would wish for a monthly salary range of between $30,000 and $35,000.
I believe I’m a competitive candidate due to my extensive experience in my previous managerial positions in financial institutions. So, I would like an annual salary between $90,000 and $99,000.
Considering my experience in the field and the skills I’ve acquired, I believe a salary between $4500 and $5500 per month would be reasonable. Kindly tell me more about the additional benefits included in your compensation package. I can adjust my required salary range based on the offered benefits.
Your salary will mostly be determined by the company you want to join. In addition, salary requirements are determined by different factors. Your response determines whether your salary expectations match the employer’s plans.