How to Answer – “What are your salary expectations?”

“What are your salary expectations?” seems to be an easy question at first. However, this question gets very tricky. It has the power to make or break the deal anytime. Not just in the case of freshers but even for experienced professionals. That’s why we have brought you a set of best practices that can help you navigate through this question like a pro. But first understand that there is not a particular answer that you can just cram and speak in the interview as it depends on the situation you are in. Hence, go through the mentioned details carefully. Let’s start.

Why do Interviewers ask “What are your salary expectations?”

• Market Value Check: Interviewers are curious to know if you have a good grasp on your worth in the job market or not.
• Budget Friendliness: Employers are not strangers to budgets and they want to be sure that they can afford you.
• Discovering your motivation: By asking about your salary expectations, they’re trying to know your compensation priorities.
• Early Negotiations: They aim to know early whether your expectations are sky-high or down-to-earth to prevent a situation where everyone is heavily invested, and negotiating the finances becomes complicated.

Factors to consider while negotiating salary

1. Research:

Before you even consider what to expect for desired pay, you should thoroughly research the position and the organization you’re applying to or interviewing with. When researching a company, you may frequently uncover the average wage paid to employees which may even be stated in the job description. It’s also a good idea to look at average earnings in your field on the internet. This might provide you with a broader idea of realistic salaries. With all of this study, you’ll have a better understanding of what you should expect as a desired compensation.

2. Experience:

The more work experience you have in your sector, the better it is. When you look at the average salaries on the internet, you will usually see a difference between experienced and novice workers. Please keep this in mind. Don’t sell yourself if you’ve been a coder for ten years for a beginner’s pay. On the other hand, if you’re completely new to the field, entry-level compensation may be suitable.

3. Education:

People don’t waste a few years of their lives in college. Whenever you are in confusion, keep in mind that the higher your level of education is, the more valuable you are to a company. However, keep in mind that many sectors demand specific majors, so if you don’t have that degree, asking for a higher desired pay may be unreasonable. Remember to do your study as per job requirements. In general, your desired income can be increased as your degree level increases.

4. Location:

The average compensation for a position varies by area. If you’re relocating for a new job, you should know how much it will cost to maintain your present standard of living. It may be okay to accept a lesser wage, not below the industry standards, if the new location offers much lower gas, housing, groceries, and utilities. However, if your new place has a higher cost of living it is reasonable to ask for a higher salary in this situation, and it won’t be inappropriate.

5. Expenses:

Finally, you should be aware of what you can afford and what your monthly expenses are, including your office commute. It can be useful to sum everything together and calculate your monthly average cost of living to determine how much money you need to live comfortably.

Once you have analysed the factors to determine a reasonable salary for yourself, it’s time to know how to put them into the right words and answer.

How to Answer “What are your salary expectations?”

Interviews can be stressful and difficult, but if you can dodge the “What is your desired salary” question, you’ll have one less thing to worry about. Here are some pointers on how to respond effectively:

1. Wait till you have adequate information:

Don’t make something up if you don’t have adequate information when the recruiting manager asks. Instead, you should wait to respond until you have more information. Here is the sample answer for your convenience.

Before, I put forward my salary expectation, I’d like to learn more about what this position requires. Also, it will be great if you could enlighten me about the other perks that company offers like insurance or work flexibility.

2. Always back up your response with research:

All of that research wasn’t useless and now it’s time to put that information to use. If your study led you to the conclusion that you are worth Rs.15,00,000 a year, you should be able to make a convincing argument for why. Learn about the job you’re applying for and utilize your knowledge to market yourself.

My research suggests that the average salary for this role in Noida with my experience is around 15-18LPA. But my skills in Artificial Intelligence put me closer to the top end and I am happy to discuss specifics based on the details of the position!

3. Take a look at the company’s perks package:

Remember to ask about the company’s perks. Your health insurance, stock options, pension, and other benefits because they all add monetary worth to the position. As a result, they may influence what the recruiting manager considers to be appropriate compensation.

My salary expectations are flexible and I’m primarily interested in a role where I can learn and grow. I’d love to know more about the benefits and perks offered.

4. Indicate whether or not the negotiation is acceptable:

Make it clear to your company during the interview that you are willing to negotiate your compensation. In general, it is important to be willing to negotiate. If you’ve previously established your lowest acceptable pay, you should hold strongly onto it.

I believe that an annual CTC of Rs.10,00,000 to Rs.13,00,000 is appropriate as per the industry standards and the skills and experience that I bring to the table. However, I am open to negotiation and would be glad to learn about the company’s budget and expectations as well.

5. Reject unsuitable offers:

Know the lowest income you can accept to maintain your quality of life before heading into the interview and be prepared to politely decline an offer if the employer cannot fulfill your needs. Don’t undervalue yourself. Remember that it is preferable to remain to look for the ideal fit than to accept a job that does not pay well.

My salary is flexible, but I prioritize roles that offer a competitive package supporting my lifestyle. I am open to negotiation, but I would not be able to accept anything below what aligns with my value and skills.

General Sample Answer:

Based upon my research and experience in [industry], I’m expecting a salary range of [salary range]. My [specific skills and experience] are valuable for this role, and I’m confident that I can contribute significantly to your team.

Common Mistakes

• Speaking very soon: The sooner you declare your desired pay, the more leverage the employer has over you during the hiring process. In a pay negotiation, it’s nearly always suggested to let the employer speak first, whether that’s communicated verbally or in writing in the form of a job offer.

• Providing the exact numbers of current salary: Every recruiter asks for your current salary. Instead of revealing the exact numbers, you can give a range. You can say,” Presently, I’m getting between 35,000 to 40,000 INR per month”.

• Failure to consider the long term: If there is a set system in place for pay hikes, promotions, commissions, or incentives, you may miss the wider picture by focusing solely on the base income you are offered. This will require some maths and trust in your possible future employer, but these are important elements to consider.

Conclusion

There are so many elements to consider while answering this type of question that you may think to be difficult. But not anymore, because this article provides all you need to know about what, why, and how to master salary negotiation. If you have any other tips in mind to add or suggest, you can drop them in the comments.