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No matter how promising the opportunity, there’s no denying that salaries are a major factor when accepting a job offer. In fact, Robert Half research found 58% of Australian workers would reject a job offer if the salary didn’t suit. For many of us, being compensated fairly for our skills and experience impacts job satisfaction. While the impact of the interest rates took a toll on businesses, with many pausing salary increases and hiring in 2023, signs of strong economic recovery means that competition for great employees to help businesses grow is heating up again. Related: Questions to ask in an interview According to research by Robert Half, seven in 10 (70%) Australian companies are willing to increase their initial salary offering to secure new candidates this year. Of those, 40% plan to increase salary offers for top talent only while 30% will increase salary offers for all.* While this is good news for job seekers, it’s important to broach the salary conversation with your prospective employer at the right stage and with the right job interview preparation. Failing to do so could compromise your chance of securing the role or the salary you want. If you are contemplating how to ask about the salary in a job interview, here are some factors to consider before you start discussing salaries during the interview process.
The first interview is an opportunity for your potential employer to get to know you and identify your attributes and strengths. Before starting a dialogue about your salary expectations, you need to display suitability for the role and be sure the job is right for you, as well as attracting the attention of the hiring managers. Related: Second interview questions to expect Waiting until the second or third interview is much wiser for discussing the salary. Once you’re confident the company is interested and they understand your value, you can lay your cards on the table.
Although opportunities for a higher salary can be a catalyst for your decision to change jobs, suggesting that it’s your biggest motivation is a grave mistake when discussing pay in an interview. Discussing salary during the initial interview, or referencing it in your cover letter or resume, can send the message that you value dollar signs over opportunity and experience. When crafting how to ask about the salary in a job interview during your second or third interview, inquiry about it when it feels natural in the conversation and keep an open mind when listening to the response.
When you do decide to discuss wages, don't mention a specific figure – provide your preferred salary range instead. Showing that you're flexible is the first step towards negotiating a pay packet that’s viable for your employer and reflects your ambitions. To prepare, arm yourself with information by consulting colleagues in your industry and reviewing a Salary Guide to assess your market rate. If you do your research, you'll be better equipped to negotiate. Before you ask about salary in the interview, remember to put yourself in your potential employer's shoes. If you wait until you’ve proved your value as a serious prospect, you're likely to get the best result.
Knowledge is power. Do some homework and research the latest salary trends for your city, industry and job title by reviewing compensation surveys and publications such as the Robert Half Salary Guide, and talking to colleagues and recruiters. This also allows you to adjust your expectations from your employer as well. You may think a role is worth a certain amount, but comparing it to current salary ranges in your industry will give you a taste of where you may land on the scale. Plus, it positions you in a positive light. Suggesting an outrageous salary amount without much research can reflect carelessly on you.
Salary is a representation of the value an employee brings to the company. You need to be able to talk specifically about your skills, experience and prior successes, especially those that have had measurable effects on the bottom line. This will definitely benefit you when the time comes for salary negotiation. Don’t be afraid to let your enthusiasm for the role show – your passion can be contagious. Related: Common interview questions and how to answer them
Don’t jump the gun. If you are contemplating how to ask about the salary in a job interview, let the interviewer steer the conversation for you. Wait for the hiring manager to bring up the salary discussion and make sure you fully understand the requirements of the position before answering questions about your preferred pay. Ask prospective employers what they think would be an appropriate pay range for the position so you can avoid giving a figure that is too high or low when discussing salary. And don’t think that if you leave it up to the hiring manager to guide you to the salary talk, that it won’t happen. The topic is a necessary stage in the interview process, so be rest assured it won’t be skipped! Related: Accepting a job offer
It’s never a good move to mislead a prospective employer about your current compensation or other higher-paying job offers in an effort to get more money. Instead, emphasise the value you can bring to the organisation when discussing salary, and be honest about your desired remuneration. Related: How to decline a job offer
Always try to negotiate If you’re offered a salary that doesn’t meet your expectations, it’s okay to request additional compensation. Employers may start at the lower end of their salary range, leaving room to move. Think beyond the pay packet Be sure to look at the full picture when evaluating a job offer. The job you love could offer a generous benefits package or opportunities to learn and grow with the company, which may compensate for a lower starting salary. Nicole Gorton, workplace expert and director at Robert Half echoes the value of benefits and how it can be part of compensation negotiation. “Benefits can be an important differentiator for employees when it comes to accepting a job offer and looking to work elsewhere, particularly when the salary isn’t spot on. As well as providing value for employees by financially offsetting some of their work-related costs, perks and benefits also provide value for employers who may not be in the position to offer increased salaries.” “Benefits have gained in importance over the years with many employers having increased their offerings as a way to attract and retain top talent. Companies, however, can’t be complacent and need to regularly review their remuneration policy to meet the modern needs of employees with hybrid or remote working benefits being high on the wish list in today’s market.” Get it in writing Before accepting a job offer, make sure that you get an offer in writing stating the salary. It’s never a good idea to formally accept a job offer without seeing it in writing.
When it comes time to discuss salary during the job interview, knowing how to frame your questions will help you get a better outcome from the conversation. What to say: Begin by expressing your genuine interest in the role and the company. Instead of directly asking for a number, focus on your qualifications and the value you bring. "Based on my [experience/skills/achievements], I believe my contributions would be worth between X amount and Y amount." Offer a range that reflects your research and experience based on industry standards and salaries for similar roles in your sector. For example: "I'm very excited about this opportunity and would like to discuss compensation further. Based on my research and experience, I believe a salary range of [X to Y] would be appropriate for this role." Instead of just focusing on base salary, inquire about the total compensation package, including bonuses, stock options, benefits, and other perks. Emphasise your willingness to discuss and negotiate the salary to reach a mutually agreeable outcome. For example: "I'm open to discussing salary and finding a mutually agreeable solution that aligns with my experience and the value I can bring to the company." If the interviewer doesn't bring up salary, you can politely say, "I'm very interested in this opportunity, and I'd like to discuss compensation at the appropriate time." It is equally important to know what NOT to say to avoid jading your first impressions in the eyes of the hiring manager. What NOT to say: Avoid asking about salary in the initial stages of the interview process. Wait until the employer expresses a strong interest in you. Don’t be the first to mention a number. Let the hiring manager initiate the salary discussion. This gives you more negotiating power and allows you to think about your answer rather than how to bring it up. Don’t lowball yourself due to lack of research. Aim high while remaining realistic. Avoid ultimatums or threats. Maintain a professional and collaborative tone throughout the negotiation. Don’t lie about your salary history. Be honest about your current or past salary, but focus on your future value and potential contributions.
If during the job interview you receive an offer, here are some considerations to keep in mind when you respond: Express your gratitude Consider your experience, qualifications, and the value you will bring to the company. This information will serve as the basis for your counteroffer if necessary. The hiring manager may not immediately agree to your counteroffer. Prepare responses to potential objections, such as budget constraints or company policy. Emphasise your value proposition and be prepared to compromise on certain aspects. Negotiation takes time. Be patient and allow the employer to consider your request. Maintain a professional and respectful tone throughout the process. Know when to walk away. If the employer is unwilling to meet your needs or the negotiation reaches an impasse, don't be afraid to walk away. It's better to decline an offer that undervalues your worth than to accept a job you're unhappy with.   *SOURCE: INDEPENDENT SURVEY COMMISSIONED BY ROBERT HALF AMONG 1,000 OFFICE WORKERS IN AUSTRALIA
When is the appropriate time to bring up salary in a job interview? If not discussed already, the appropriate time to bring up salary in a job interview is generally after the interviewer expresses a strong interest in hiring you or toward the end of the interview process when you have a good sense of the role and responsibilities.   Should I mention salary expectations in my cover letter or resume? No. It's best to avoid mentioning salary expectations in your cover letter or resume unless the job posting specifically requests it.   How do I respond if the interviewer asks about my salary expectations early in the interview? "I'm very excited about this opportunity and would like to discuss compensation further once I have more information on the role and responsibilities. Are you able to tell me more about what is required in this role?” "I'm flexible with salary and would like to understand the full scope of the role and responsibilities before discussing compensation. Could you tell me more about the day-to-day tasks and expectations for this position?" "Before discussing specific numbers, could you share the typical salary range for someone with my experience and qualifications in this type of role at your company?"   What are the signs that it's a good time to discuss salary during an interview? The interviewer expresses strong interest in you The conversation turns to your future role The interview asks about your salary expectations The interview process is reaching the end You have discussed all other aspects of the job   Is it better to wait for the employer to bring up salary first? Yes. To play it safe, let the employer bring up the topic. But, the optimal approach depends on the specific situation and your comfort level.