The First Number
Have you ever encountered the following question when applying for a job?
What are your salary expectations? (Please be as specific as possible)
As uncomfortable as this question may make you feel, there are a few reasons why a potential employer would ask you this*. Employers are interested in learning how your number compares with their predetermined range, as well as with responses from other interested applicants. They may also be curious about how you assess your own value. Ultimately, this number can influence whether they decide if it’s worth their time and effort to pursue you.
I believe it’s important to go into a negotiation with an understanding of your target. But if you encounter the preferred salary question on an application form or during the early or late stages of the interview, I generally recommend not presenting the first number.
Why? Because the first number sets the starting point, also known as the anchor in a negotiation. Regardless of its relevance or validity, future discussions involving numbers (e.g., counter offers) tend to gravitate toward this initial value. For a job seeker - someone who does not typically have a clear view of the employer’s budget, candidate pool, and other relevant data - setting the anchor can potentially be problematic. The employer may have been considering a higher range before learning of the applicant’s willingness to do the same job for less.
So how do you address the salary expectation question without running the risk of leaving money on the table or being perceived as rude if reluctant to respond?
If a recruiter or hiring manager poses this question early in the application process, an example of a sufficient response could be:
“I want to ensure this opportunity is the right fit before discussing the numbers, which I’m sure will work out well for the both of us.”
If you are asked this question during the later stages of an interview or when an offer is imminent, requesting additional clarification could be helpful:
“I would first be interested in learning how someone with my skillset and expertise is assessed within this organization.”
These answers convey good faith that the final discussions will be constructive. They also buy you extra time to collect valuable information that can strengthen your case when it’s time to negotiate. If you still feel pressured to give a number, make sure to conduct your market value research and provide a target that falls in the higher end of that range.
It is worth noting that in some cases, it makes sense to present the first number due to advantageous circumstances. Examples include:
Information transparency - you have knowledge about the other party’s budget, pay structure, and other relevant terms and can present an informed number.
Rockstar status - you are well-known and highly-regarded in your field and feel confident setting the terms.
Multiple offers - Thanks to your current situation, competitive offers, or other factors, you have little to lose presenting a strong starting point.
When it comes to advocating for yourself, make sure the anchor doesn’t sink you, but instead secures you in a favorable position for both your negotiation and a promising career.
*In some states in the U.S., it’s illegal for employers to ask applicants for their salary history. However, asking about pay expectations is permitted.
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