How to Answer Questions About Salary

Last Updated: March 21, 2023 References

Answering questions about your salary can be a tricky topic to navigate because there are many social and professional taboos regarding discussions of money. Additionally, it can be awkward asking your boss for a raise or negotiating a salary amount during an interview, largely due to the fact that you typically want your boss or future employer to make the first offer. While discussions involving salary figures can be nerve-wracking and uncomfortable, being ready with specific talking points and prepared responses will help you answer questions about this financial topic with grace and confidence.

Method 1

Method 1 of 3:

Bringing Up Salary Info During an Interview

1
Come prepared. It is important to do your research ahead of time to figure out what salary range is appropriate to expect for someone with your experience, level of education, and specific skill set.^{[1]
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Expert Source

Jonathan Soormaghen
Career Coach
Expert Interview. 7 October 2020.} You need to have some idea what the position is worth and what your skills are worth in order to navigate the compensation question during an interview.^{[2]
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- You can search websites like salary.com, payscale.com, glassdoor.com, and others to find out information about what people are getting paid in equivalent positions.
- You should also try asking around to various friends and colleagues, especially if they are in a related field, to figure out what an appropriate figure would be.
2
Avoid specific dollar amounts when possible. If you are asked about compensation for previous employment, use specific dollar values only if the situation requires them, and do so in a strategic and thoughtful manner. You do not want to appear as though you are boasting or prying into someone else's business.
- When in a professional setting such as an employment interview, avoid bringing up previous salary figures. Base your personal salary requirements on your education level, previous experience and skill set, and comparable industry statistics. Come prepared with updated and current data regarding average compensation for someone with your level of qualifications.
- If the potential employer does ask you to provide a specific dollar value for a desired salary, be honest with your expectations. A common mistake occurs when employees propose a salary lower than they would really want to accept for fear of being turned away by the employer. Whether in a range or a single amount, a prospective employee should never offer an amount less than they are willing to take under the worst situation.^{[3]
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  Expert Source
  
  Jonathan Soormaghen
  Career Coach
  Expert Interview. 7 October 2020.} A useful strategy is to offer a mid-range figure with the statement that is negotiable depending upon benefits, promotion opportunities, etc. That way, each party can save face.
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3
Discuss other forms of compensation. Let the interviewer know that salary requirements are not your only point of interest or concern. This will help you steer the conversation away from a discussion focused solely on dollar amounts. Express to the interviewer that aside from salary, other job-related issues such as career advancement, professional opportunities, or other benefits associated with the position are very important to you.^{[4]
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- If a potential employer asks you to disclose the salary level of your current or previous position, do not be afraid to include all forms of compensation. This could include health benefits, 401(k) contributions, profit sharing, or other benefits in addition to your base salary. State the amount of your "total compensation" including the value of the benefits package.
- There is nothing wrong with this strategy, so try not to consider it misleading. In return, be sure to consider all forms of compensation when comparing a competing salary offer to your current or previous position. Employee benefits are an often overlooked but significant portion of a salary offer.

Method 2

Method 2 of 3:

Negotiating Raises and Compensation

1
Familiarize yourself with company policy. While it is illegal in the United States to forbid employees from discussing salaries and compensation under the National Labor Relations Act, many businesses frown on such discussions and view it as a reprimandable offence.^{[5]
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Trustworthy Source
National Labor Relations Board
Independent U.S. government agency responsible for enforcing U.S. labor law in relation to collective bargaining and unfair labor practices.
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- This means that you could be punished at work for discussing your salary with other employees or inquiring about your colleagues’ salaries. You might not be fired for this, but you still don’t want to get reprimanded at work.
2
Give your boss time to prepare. Since the discussion of money is a relatively sensitive topic, you don’t want to spring it on your boss as a surprise. They’ll need time to gather the necessary information (salary statistics, performance reviews, etc.) and to mull over what they want to discuss with you.^{[6]
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- If you have an annual performance review meeting, this would be a great time to bring up the discussion. Otherwise, give your boss a heads up that you would like to schedule some time to discuss your performance and compensation.
3
Act confident, but not entitled. Project an appearance of confidence and professionalism when the topic of salary negotiation arises. You want to show your boss evidence of why you feel that you have earned a raise, not simply that you feel you are entitled to one because a certain amount of time has passed since your last raise. ^{[7]
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- Being able to speak confidently and openly about salary expectations will show your employer or associate that you are professional and confident. Getting embarrassed or nervous when speaking about your salary may give the impression that you are not capable of discussing complex issues with coworkers.
- Remember that compensation is not a "gift" from an employer, but a negotiated exchange of compensation for expected value to be received by employer. If the employer did not believe they would get that value, they would not make that offer.
4
Answer question efficiently. Don’t try to give your boss a presentation about all the reasons you think you deserve a raise. Listen to your boss’s questions and comments and try to tailor your responses to what they want.^{[8]
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- Don’t offer a lot of extra information or get emotional.
- Try responses like, “I feel that I am a valuable asset to this company for reasons X, Y, and Z, and based on my contributions to the success of our business, I feel that I should get a raise.”
- If your boss asks you for a specific dollar amount, aim high (but be aware of any salary ceilings). This means that your boss can counter with a lower offer that you both could be satisfied with.
5
Accept the outcome. If your boss says no to your request for a salary increase, accept their answer. Don’t get visibly upset or start an argument. Once you confidently present your case, the rest is out of your hands.^{[9]
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- Of course, you can also ask for other forms of compensation like more paid time off or other benefits.
- Ask your boss for constructive criticism so that you can do a better job in the future and get the raise you want.
- Don't burn bridges or quit even if you don't get the raise you feel you deserve. If you want to start looking elsewhere for a higher salary, remember that it is easier to find another position while employed than unemployed, so stick with your current job until you find something else.

Method 3

Method 3 of 3:

Discussing Your Salary Socially

1
Deflect the conversation. It is often considered a taboo to speak openly regarding specific figures of your salary, even among friends. If you are asked about your salary but don't wish to provide a specific dollar amount, simply make a generic response such as "modest" or even "considerable." It is also acceptable to calmly and confidently reply that you do not wish to discuss salary unless it is necessary.
- This is an especially good tactic if revealing your salary would make you uncomfortable or if you believe it would cause tension between you and the person asking.
- You might say something like, "I make about an average salary for someone with my job and experience."
2
Consider the consequences. Discussing your income with a friend or family member who makes relatively close to the same amount as you is probably a harmless encounter; however, if you disclose your earnings to someone who makes significantly more or less than you, this could become a source of tension in your relationship in the future.
- For example, feelings of resentment could arise if a friend discovers you make significantly more money than them. Or there could be disagreements over what activities you do together because one of you can afford it and the other can’t.
- Additionally, people might judge your financial decisions more harshly when they know the specifics of your income. For example, your mother might chide you for buying a new car if she thinks your salary isn’t enough to support the decision.
3
Limit your discussions about compensation to business mentors and family. Circumstances are always different from one person to the next. Your friend might be in a similar position and make more money than you, but that friend might also have additional skills or education that you lack. Keep in mind that information gained from awkward conversation is rarely reliable.
- Consider simply talking generally about salary with those close to you. You can ask for advice on how to negotiate for more money (strategies that have worked for them and those that didn’t work so well) without needing to disclose specific numbers.

Warnings

Some employers may enforce disciplinary action on employees who disclose their personal salaries to other employees without permission. Refer to your employment contract or employee handbook to verify the expectations of your employer.

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