Million Dollar Interview Question: How Much Are You Looking To Earn?

Compensation is a negotiation. And as a result, your negotiating skills need to be in top notch to be able to get you an impressive compensation that can keep you productive and motivated at that new position you are being considered for in XYZ company.

Before sending out your resume to any organization, it is extremely crucial that you are able to address the question “How Much Are You Looking to Earn?”

As a candidate looking to change jobs sometime in the future, you need to start thinking about how to negotiate good salary compensation for any role you may be considering to apply into. And except you are being poached from your present company into another company already offering you quadruple of what you currently earn, being unprepared for salary questions can cost you thousands to millions of Naira and cause you to concede power in the “salary rhythm".

And understand that if you are not well prepared to answer the famous question “How much are you looking to earn”, you will lose the salary negotiation battle even before you resume on the first day. You may even lose the job opportunity should you over quote or over-value yourself. And the worst that may happen is that you may lose a future negotiating power with the same company.

To enable you prepare and execute a salary negotiation, follow these steps:

i.                     Research competitive salary information for your position, industry and region.

ii.                   Calculate the total value of your last compensation package, including base, bonus, commission and any other extras. Be prepared to be specific and exhaustive.

iii.                  If you’re asked for salary history, counter ask with what the company is prepared to offer.

iv.                 Don’t lie or inflate. Expect that the company can and will check every number. They usually have a strong and wide network pool.

v.                   Have a compelling speech ready explaining why you’re worth what you’re asking based on your research of the market, not your previous salary. 

 However, how do you avoid negotiating yourself and your compensation benefits to the company's exit door?

UNDERSTAND WHEN & WHO TO DISCLOSE YOUR REMUNERATION PACKAGE - As a general rule on this side of the continent, it is expected and not considered strange to share your current company’s compensation with a head hunter, as they need to know that you are a very close fit with the hiring company’s specifications as they don’t want to be in the position of recommending a candidate whose salary expectations are either too high or too low to be viable. Rest assured that all they want to know is whether you’re “in the ballpark” of who they want to recruit. With direct employers looking to recruit you into their organisation, the story may however be quite different. It’s neither considered necessary nor advantageous for you to reveal salary information before you have a job offer in hand. After all, your current salary does not really have any effect on the value you can deliver in the position you are being considered for. And when you reveal how much you currently earn, you automatically give the prospective employer negotiation power. However, being able to negotiate might only be applicable to only mid-level or highly experienced candidates who have a lot to offer the organization in question. For entry applicants, you may not have enough playing ground to negotiate that high up just yet.

Now, how do you deflect remuneration questions like a smart professional? Simply by reading several books, conducting online research from relevant articles or go ahead to engage the services of a career or life coach who will help you learn and practice how to provide appropriate responses during these periods.  

BE PREPARED FOR THE QUESTION- It’s inevitable that you would come across this question. It's like the time of day. Just like morning shows up everyday, this question is on the lips of every recruiter/employer. No organization wants to overpay a prospective candidate hence the famous question “how much are you looking to earn”. You may consider practicing a variety of responses until you can say them naturally, impassively and non-defensively. However, communicate to your interviewers that the primary purpose of the interview is to determine whether you are the right person for the job and once you have both mutually conceded the strength of your candidacy, you can now move towards discussing remuneration. Give the accepted assumption that the employer will pay an appropriate salary, and simply ensure to sell yourself in a compelling way and once you have succeeded in giving the wow factor, you can then begin to negotiate.

Below are some suggestions on how to go about this: When a recruiter asks you, “How much are you looking to earn?” consider the likely responses below:

You- “I’d like us both to determine whether I am the appropriate fit for this position. Once we can ascertain I am a good fit, I believe we should be able to come to a mutually agreeable situation.”

 You- “I am quite certain an organisation such as yours offer very competitive remuneration so I am quite certain remuneration should not be an issue at all so long as I am qualified and fit to hold this position.

You – “As a qualified and experienced --------, I am quite interested in a remuneration package that will keep me motivated and productive. I am very certain your company pays competitive salaries to retain talented people. So I am certain my remuneration expectations wouldn't be an issue”.

However, if the recruiter or organization’s contact insists on getting this information out of you, consider responding as below:

You- “As I reiterated earlier, I am quite certain compensation should not be a problem once the suitability is confirmed. If I may ask, what is the compensation benefit you have budgeted for this position I am being considered for? I can let you know whether it falls within my remuneration expected range”.

If the recruiter/organisation comes back with a figure, you can respond as suggested below:

You- “That certainly falls within my expected range. However, let’s keep talking to see if I’m the right person for this job.”

If the interviewer presses further or asks, “So, how much would it take to bring you on board?” Consider responding like below:

You- “I am very excited about this position and quite eager to tackle the challenges we have discussed so far. I assume I will be paid a salary that will keep me motivated and productive. What figure did you have in mind for this position?”

However, considering Nigerian recruiters always want to get a figure from you and you may begin to feel pressured to mention a figure, It is perfectly normal to surrender to this pressure to answer the recruiter’s or employer’s questions. You certainly don’t want to create an antagonistic atmosphere in the interviews so most times, you may need to give out some responses.

If you feel compelled to share your salary expectations, I’d advise you mention a wide salary range instead of quoting a specific figure. Also be sure to tie your remuneration expectations to proven facts, and not what you think you deserve because of the institution you graduated from or the company you are being poached from.

CONDUCT YOUR RESEARCH- Before you attend any interview, ALWAYS conduct your research either online or through appropriate network  to determine the current salary type and the perks that come with the position you are looking to fill. That way, you will be able to mention matter of fact that “My research shows that salaries in the N9M per annum to 12M per annum are very appropriate for this position. I anticipate a competitive salary in that range.”

Summarily, remuneration negotiation preparation is an important early step in a successful job search and also play a major role in ensuring you clinch the job. There are no rigid rules on how you can negotiate. If you are a good fit and have a lot to offer and bring to the new company’s table, you can use your negotiating power so that you get the appropriate perks that come with the position you are being recruited for BEFORE you sign the employment letter. 

With a little practice and after some time, you’ll be able to respond naturally, appropriately, and non-defensively when the question, “how much are you looking to earn” comes up, and you’ll put yourself in an advantageous position to field appropriate offers.