Ask The Work Buzz! Salary Questions Answered

A reader sent me an e-mail yesterday regarding how to respond to the question, “What is your salary range?”

Susan F. asks: “I worked in the HR field about 20 years ago. A friend of mine is looking for a position and she noted that some of the companies she is applying to, the first question they ask her is, ‘What is your salary range?’ Fifteen to 20 years ago, we knew what somebody’s salary range was when they applied for a position. Why are employers doing this now? They’re not really looking for expertise; they are looking for a salary.”

Susan raises a great question and an important issue when it comes to salary negotiation.

Traditionally, salary doesn’t even come into play unless an employer is serious about extending an offer. In today’s economy, however, the rules have changed.

One reason why employers might immediately ask about your salary range right off the bat is because companies are being very mindful of the bottom line. While they are definitely interested in your expertise, they might just be trying to be transparent about who they can afford and for how much. If an applicant’s salary range is not in line with what the company can offer, a hiring manager might not see the point in continuing the conversation.

Additionally, today’s job market is dealing with the issue of people “applying down for work.” Say you are an ex-CFO who was making six figures in your last role. Now you’re applying for an accounting position at a much lower level. Companies recognize that your qualifications deserve a higher pay and the hiring manager could think that the number is make or break for you (or that you’ll run to a higher-paying job as soon as the market improves).

Both of those things being said, employers should be finding out more about you and your fit for the position before talking dollars and cents.

If you are asked about your salary range immediately, however, try responding with something like, “I’d feel comfortable learning more about the position first and discussing salary if an offer is made to me.” Otherwise, if you offer a salary too high, the hiring manager could discount you before you have a chance to prove yourself. If you offer a salary too low, you risk receiving a lowball offer.

If you’re applying down to a position that pays less money than your previous job, it should already be apparent that you are not in it for the money. But, if salary is brought up right off the bat, try something like, “I’ve seen the average salary for this position pays X amount. Although it is less than I have earned in the past, I’m still very much interested in the position and willing to discuss this. What other benefits are available to me?”

In a perfect world, if an employer sees that you are the right candidate for the right position, salary will merely be a formality.

Continue to ask us your burning job-search questions!

Rachel