How to Answer “What Are Your Salary Expectations?” in 2024: A Comprehensive Guide

 You've applied for your dream remote job and performed exceptionally well throughout the interview process. You've demonstrated to the interviewer and hiring manager that you fit the role perfectly. And it worked! They're convinced that you're just the candidate they need. There's just one final question left—the question that fills us all with dread:

Your unique expertise and skill set play a major role in determining which end of the pay range you are likely to fall in

"What are your salary expectations for this role?"

This question can significantly impact your career prospects at this crucial juncture. You're worried that you might be underselling your skills if you suggest too little and missing out on a potentially lucrative salary. Conversely, if you state a figure at the high end of the pay range, it might be too high for their budget, and worse, they might perceive you as out of their league and decide not to offer you the job.

So, what should you do? Here is a step-by-step guide on how to approach this sensitive issue:

1. Understand Why They’re Asking “What Are Your Salary Expectations?”

First things first. You need to understand why the interviewer—whether a hiring manager or recruiter—is asking this question. It might seem obvious, but one reason is that they are trying to assess your value. They want to see what estimate you place on your monetary worth in the job market, which helps them gauge your experience level and the expertise and value you would bring to their organisation.

While they may provide a pay range when advertising the role, they will likely negotiate the salary according to various factors based on your experience and skills. If you have only two years of experience, for example, it's best to go for the lower end of the range. With more years of experience, you can increase your salary expectations to align with the middle of the range, where it feels comfortable for you.

Another reason a hiring manager would ask this question is that they are working within a budget. They need to ensure that the pay you're asking for falls realistically within that budget.

2. Do Your Homework

Rather than leaving it up to luck or chance, undertake due diligence and research the job market and salary expectations for your industry and specific role, including your seniority level.

You should even consider factors such as the city or state you reside in, or the city and state the employer is hiring from, as these can greatly impact average salary ranges, causing them to plummet or rise sharply due to greater demand or higher cost of living in certain locations. Even if you are applying for a remote job, location should still be considered when it comes to salary ranges.

Excellent sources of average pay range information include salary calculators such as ZipRecruiter, Salary.com, Glassdoor, and Indeed. These may also provide you with information on expected pay ranges at the specific employer you are interviewing with. This helps with pay transparency on their part and enables you to ensure that you are not being discriminated against due to personal characteristics such as age, race, or gender.

Use salary calculators and your previous role as a benchmark for pay expectations in your industry, role and location

3. Assess Your Value

To assess your salary value, it might be helpful to use your last role (if it was in the same field or industry) as a benchmark. You might be comfortable asking for the same salary as the one you had previously, or you could demand higher pay—but it's important to know why you deserve to be paid more.

Do you have a unique skill set that you can provide which is of high value to the new employer? Have you upskilled and completed certifications or a master’s degree since then? Was the last employer paying you unfairly, below the average range for someone with your experience and skill set? Did you acquire a significant breadth of expertise and accomplishments in your last job that justified your new salary expectations? Make a note of all these factors.

4. Provide a Range, Not a Fixed Number

When answering “What are your salary expectations?” it's important to respond with a salary range, not a fixed number. It's similar to what happens when you ask someone a closed question versus an open-ended question.

Providing a fixed number (i.e., £70,000) allows the employer to outright say no, with limited scope to explore further. You might also end up cheating yourself out of higher pay if the employer is willing to pay more. However, if you give them a range (say £70,000 to £75,000), they have some room to work with and can even offer you more than what you initially expected.

As a general rule, aim to provide a range that varies no more than £5,000 to £10,000. Additionally, it would be good practice to ensure that your desired fixed number is at the bottom of the range. Start from there, then add £5,000 to £10,000 as your maximum for the range.

So for example, if you want to be paid £70,000, start your range from that figure and end at £75,000 or £80,000. This ensures you never get paid any less than your minimum expectation.

While sharing your range, be sure to make it clear that you’re happy to negotiate and discuss further. You might also use this as an opportunity to say that you're open to reconsidering your salary range if the right benefits and total compensation package are in place.

This perfectly segues into my next point:

Salary is only part of compensation, so don't forget to consider the bigger picture.

5. Consider the Entire Compensation Package

Last but not least, remember to consider the entire compensation package. Think about other benefits that you would potentially be willing to sacrifice part of your salary for if needed. What benefits matter the most to you? Healthcare? Stock options? Bonuses? Remote work? Learning and development or work-from-home office stipend? Factor these into your salary negotiation with the hiring manager.

Occasionally, the hiring manager might say, “We will revisit this later, according to your performance in the role.” In this case, if you feel comfortable with everything else and there are no red flags, go for it—but be sure to confirm in writing when exactly your pay will be reviewed for a potential increase. Have a transparent discussion to understand what the expectations are for you in your first 90 days, six months, and one year into the role, and what the criteria are for increased pay at your pay review.

Following these five steps will help you answer “What are your salary expectations?” confidently and positively, aligning you with a remote job (or otherwise) that reflects your true worth. You’ll never need to worry about this question again.