How to answer ‘What are your salary expectations?’

When interviewing for a new job, you’ll likely be asked about your salary expectations. Answering successfully involves researching market rates and gaining a clear understanding of the role before offering a range. 

Hiring managers and recruiters often ask about your salary expectations to determine whether they align with the available budget. Or they may want to see how you value your own skills, experience and education—or how well you can negotiate or counteroffer. It can pay—literally—to nail the answer by communicating your salary expectations clearly, confidently and professionally to a potential employer.

What you’ll learn:

• Researching typical salaries for similar roles with your level of experience and education can help you determine the best salary range to suggest.

• Providing a salary range instead of a fixed number can give you room to negotiate.

• Asking whether there’s a predetermined salary range for the position can help you learn more about the role before providing an answer.

• Evaluating additional benefits like paid time off, health insurance and retirement plans can help you determine a final number or range.

First, do some research to back up your pay expectations with data, like average salaries for similar positions in the area or for workers with your skills.

When setting your own expectations, you might also consider the following:

• Your education, experience and training: Search for roles and job postings to learn what salaries are being offered for the role you’re applying for, based on your current career level and skills.

• Your location: Look for similar roles in your desired job market. You may find that a role based in a major city has a higher salary than the same role in a rural market. Compare salaries of on-site and remote roles, too.

• The firm’s average salary range for the role: You may be able to find a potential employer’s salary ranges on websites like Glassdoor and LinkedIn. While these numbers aren’t always correct or up to date, they can be a useful benchmark.

Offering a compensation range you could be comfortable with instead of a specific number might add some flexibility—something a recruiter or hiring manager might appreciate. It could also give you time to better understand the role and its expectations before landing on a final number.

When deciding on a range, consider your research, your experience and the job description. You might put the lowest amount you’d accept at the bottom of the range so you don’t settle lower than you’d need. It’s also a good idea to highlight the hard skills, soft skills and expertise that you think make you an ideal candidate at this point, too. You can also factor in the cost of living and what you need to support yourself and your loved ones.

If you’re in the early stages of the interview process, a question about your salary expectations may be an opportunity to learn more about the role’s specific responsibilities and the company’s budget.

You could ask the interviewer whether a salary range is being considered for the role before discussing your own requirements. Depending on the response, you can share whether the salary matches or falls short of your expectations—and decide whether you’d like to continue with the interview process.

There’s more than the salary offered to consider, too. You can take into consideration any additional benefits, like:

• Bonuses
• Flexible working schedules
• Remote working opportunities
• Tuition assistance
• Paid time off
• Insurance coverage
• Retirement benefits

Once you have a formal offer, consider how the salary and compensation package align with your expectations and career goals. If the number is slightly lower than you hoped, it might be possible to negotiate the salary.

If you decide to accept the offer, keep in mind you can always ask for a raise in the near future. Or you can decline the offer and ask to be considered for future opportunities. Either way, you’ll close the process on a positive note.

Your response to the salary expectations question helps the employer assess whether it fits in their budget. And it helps you learn whether the role is a good fit for your skill set. Take the time to research typical salaries for the role, experience level and location, then offer a range you’re comfortable with while considering the entire compensation package.

Remember, the interview process is your chance to advocate for yourself. Be confident in your abilities and the research you’ve done. If you’re in the midst of a job search, you can prepare by learning more about common interview questions you might be asked.