Interview Tip: Leave the salary out of it.
Let’s discuss an uncomfortable issue that most right out of college don’t know how to deal with. We at Newlycorporate received several questions “When do you bring up salary in an interview?” The question has a simple answer. You don’t. You don’t ask in the first interview and you don’t ask in the second interview, or even the third.
If you ask in the first interview you will give off two very distinct characteristics you don’t want to give off in an interview.
1) You’re greedy – This may not even be the case. But to the interviewer it says, “This is only worth my time if you’re willing to pay what I want.” Maybe that is how you feel, but either way it does not leave a good impression. In an interview you’re trying to impress, find out if the two parties are compatible, and if you have anything to offer each other. Making the interview about money in the beginning can set a poor tone.
2) You don’t know how to research – If your going into an interview and you have no idea what the standard pay and benefits for that industry, level, and location are, have you researched anything else? Here is some immediate help – salaryexpert. Not researching the company and industry is the biggest mistake I see recruits making.
Those are two immediate reason why you do not want to ask about pay in an interview. However, here is another reason, one that may even affect your wallet.
In negotiations, you never want to give the number first.
Not only in an interview do you have no bargaining-chip (yet), you don’t want to show your cards first either. I always found this most evident when I travel oversees. Mexico is not short on flee markets by any means, and if you want practice negotiations, spend a few hours in a Mexican flee market. Quickly you’ll realize the rules of negotiation. Without going to deep into negotiation theory let’s cover a few basics.
Often in the flee market the vendor has much more info than you. Most importantly they 1) know what the product costs, and 2) they know the going rate for the product. If you go into the negotiation with no idea about either of these points you will either a) insult the vendor with a low ball offer and not get sold to, or b) get ripped off.
This goes in interviews too. If you haven’t been researching the pay trends you could end up like me and purchase a Cuban cigar in Mexico for $40 (I would later find out the going rate is $10).
Once the company has made their decision and present you with an offer you will have a chance to negotiate. At this point you have something they want (your skill) and they have something you want (their money).
When it comes to salary, leave it out of the interviews. Wait until you get an offer or some sort of commitment. In most cases wait for the company to bring it up. Bringing it up early will leave a negative first impression of yourself. And ask anyone who has led an interview, a poor first impression is hard to get over.
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“Not researching the company and industry is the biggest mistake I see recruits making.”
That should be a post in and of itself… and it applies to so much more than the company we enter after college. Research grad schools, cities, apartment complexes, cars, insurance policies… the list goes on and on and on and on. Information is almost completely unlimited days; seeking it out is the responsibility of the individual.
Many jobs I have come across ask straight-away for your salary “requirements” or even your “salary history.” How do you handle each of these requests? Assuming this is a job you’d really like to have…
Great advice! Here are a few of my personal suggestions that I recommend when negotiating questions of salary.
Focus on the present, not the past- Equally important, your salary history is not relevant to the discussion at hand. The right discussion is about the particular job, its value to the company and your skills. All of these things are tied to the job’s fair market value. How can you help the new company be more successful and add to its bottom line? That’s how a potential employer should assess your value. And that has nothing to do with your salary history.
So, what should you do when asked the salary history question? Say you believe that information is personal and confidential and you’re not comfortable discussing it. Or perhaps you signed a contract and your salary is “company confidential.” In either case, follow up with something along the lines of, “I’ve researched what comparable jobs pay and I’m confident we can reach an agreement on salary.”
Decide on a salary range- Also, prior to applying or interviewing, decide on a range that spans the lowest salary you’d accept and your desired compensation. If you absolutely must reveal your salary, segue directly to your expectations and why you deserve the requested salary. Focus on your accomplishments and abilities. Be sure to thoroughly research the job and the market so you can speak with authority and conviction.
Then let the potential employer make the first offer. If you’re asked what salary you want, counter politely with, “What is the salary range for the position?” When you get an offer, treat it as the starting point for negotiations on salary, benefits and perks.
Remember, your initial salary will have far-reaching implications. Subsequent raises are often a percentage increase over your current salary. In many cases, your company’s contribution to your 401(K) is calculated as a percentage of salary.
By knowing your own worth, mastering a few strategic skills and being savvy about market conditions, you can get the salary you deserve now and for the future. And you can only achieve that by looking forward, not back.
@ Jaime – I would love to answer your question but I think Cheryl did it for me!
@ Glenn – your right, researching does deserve its own post, and it will get it!
@ Cheryl – some great points on negotiations. I would definitely counter in questions about salary with a range. I would not want my employer knowing what I was getting somewhere else. If it is to high, they may loose interest in thinking your to expensive and if it is too low you may loose out on some money!
Hi Brandon,
Thanks for the feedback =) I also definitely agree with Glenn, researching the company and industry is crucial to successful salary negotiations!
A couple things:
First, really not trying to be nitpicky or a prick here, but I would encourage you guys to proofread your posts before posting them… There were a lot of “your” when it’s supposed to be “you’re”, “to” when it should be “too”, and “flee market” when it should be “flea market”… I guess some people want to flee once they get there after seeing the prices they might have to pay, but that’s another story… I just think that if you are trying to be the experts and authorities about being newly corporate, you should give off the fact that you are spell checking and proofreading before posting.
Next, research is key – you’re right – because you don’t want to waste your own time, or the company’s, by going through an interview process that ends up with them not being anywhere in the ballpark of what you desire to make. If you don’t know what you’re worth, or what companies are paying people in similar jobs, don’t apply in the first place.
Lastly, Jamie’s question was a good one, in that a great deal of jobs that are open these days say “salary requirements MUST accompany application” or “must be stated in your cover letter” for you to be considered. While all of the ideas that Cheryl gave are great ideas, and she’s right that it’s about the present and not the past, if you don’t have an established relationship with someone at the company to which you’re applying, you may need to provide that information. You certainly don’t want to lie and say “it’s company confidential” if it’s really not. I’d say in these types of situations, you should be honest about your salary history, and when you get into the interview, you need to be prepared to talk about WHY you’re worth more than that, and come in prepared and knowledgeable about what others in similar positions are being paid at other similar companies in the area.
Also, in my opinion, if they are asking for your salary history in the requirements for you to submit your resume, they should be more than willing to provide you with the range they’re willing to pay. That way, you can know if it’s going to be within your range prior to wasting anyone’s time…
Just my two cents!
@ Bruce – Thanks for your two cents, they are always welcome. I think your response definitely highlights the importance of research. Going into the interview, knowing what the standard wage is and the standard knowledge/work level is a great base for proving why you are worth more.
I’ve recently been searching for a new job and decided this time around to try a different approach: I’m interviewing you. Not the other way around. Why should I work here? Not, why should you give me this job. It sounds a bit cocky (and you should be careful not to cross this line) but the thing that sells more than anything is confidence. In that vein, and similar to what Bruce eluded to, you shouldn’t be giving them any information that they’re not willing to give you. If the salary requirement bit comes up I’d recommend saying something along the lines of “if I give you my salary history/requirements right off the bat what kind of negotiator does that show I am? Not a very good one. And don’t you want someone who’s good at negotiation for this position?” (Obviously works better if the position is one that requires negotiation). One other caveat, new grads should tread lightly with this one. It works best if you have some job history.
@ Mark- I like the aggressive approach, but like you said be sure to tread lightly if you are a new grad or someone with limited work experience! =)
@ Mark – I like your unique approach. How do you avoid not switching the tables on the interviewer and insulting them?
We had an old partner that gave interviews. They were the most intimidating and scary interviews ever.
First the man was 6-4 200 lbs., just physical intimidating. When you sat at the interview he would ask what is your name, school, and a few other pleasantries. Then all he asked was, “What questions do you have fro me.” That was the interview. If you didn’t come with questions (good questions at that) the interview was quick and you were not getting the job. In this situation the interviewer purposely became the interviewee.
That would be the best interview ever! I always have about 2 dozen questions I’m curious about.
Sorry, but this comment has little to do with the negotiation topic in the original post, but rather my comment that I posted to it…
In looking back at my recent comment, I think I inadvertently did something that I hope is a lesson to people just coming into the corporate space… That is a lesson that has been preached by my bosses throughout my career, but apparently I haven’t taken to heart enough – “Praise publicly, confront privately…”
I’d like to personally apologize to Brandon for the first paragraph in my recent comment. It wasn’t constructive to be said in a comment on here, and would have been handled better if I had sent what I said in a note personally to him privately.
So, a piece of advice for the day: “confront privately, praise publicly” – a way to live that apparently I have yet to grasp! Hope that helps you all as you move forward in your careers!
Brandon. I’m thinking about pursuing my MS in Taxation as well vs. my JD with an emphasis in Tax. What are your thoughts? I’m wondering which degree would be beneficial in the long run? Also, why are you pursuing your Masters in Tax? Thanks.
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