How to Answer 6 Common Salary Interview Questions

Interviewing on its own is stressful, but answering salary interview questions during a job interview often comes with a whole other level of stress.

Talking about money can be awkward because it used to be seen as taboo, but times are changing! It’s important to flex those money-talking muscles to address salary questions early on in the interview process. This will help you ensure that the job itself is worth your time and consideration.

There’s often no point in wasting your time if the company can’t meet your total compensation expectations. These expectations are based on your years of experience, cost of living, and average salary in the market.

When the company and job is a good fit, the salary will be livable for you as well.

If you’re like us and get stressed about how to answer common salary interview questions, here are strategies on how to accurately address your compensation expectations when a potential employer asks.

1. What Are Your Salary Expectations?

Career Coach Alyson Garrido notes that “This question catches many off guard.” She goes on to explain, “Make sure you’ve done your research and know why you’ve come to this number. Ask your network and research online to see the salary that is typical for the position and why your skills might warrant more than the average.” 

Our salary database provides a customized report that shows how your salary compares to similar ones submitted to The Salary Project®. 

Some great other tools to help you research average salary rates and market value include the Bureau of Labor Statistics, PayScale, Salary.com, and Glassdoor.

2. What is Your Desired Salary Range?

Discussing a salary range can be more beneficial than providing a hard pressed number for your compensation expectations. This allows potential employers to see your minimum, and also allows for flexibility based on their internal compensation structures, your years of experience, and the value you offer as a candidate.

Sharing specific numbers can reduce the amount of leverage you have when it comes to salary negotiations. A range is always worth sharing.

Garrido agrees. “I find that candidates are most comfortable sharing a range rather than a specific number. It’s important to make sure that if you decide to share a range, the lowest number in the range is still an acceptable option.”

She goes on to note that “Many say that you should try to avoid this question at all costs, but the fact is sometimes you have to give an answer and that’s okay. The most important thing is that you’re prepared and don’t look back later wishing you’d asked for more.”

It’s easy to get enticed by a big number, however it’s important to actually figure out your budget. What salary range would work for you. What are your needs? How many hours are you actually working?

Evaluating all of these variables in relation to your salary expectations ensures that you’ll be comfortable with the salary on the table, and that you’ll share a realistic range based on your unique situation.

3. What Did You Earn at Your Last Job?

This question might seem harmless. It might even seem like a normal question within your job search. This question is illegal to ask in more than half of US states. For a full breakdown of the legality and what employers can ask about your previous or current salary, check out this table created by Paycor. 

With this said, if you have a strong starting salary, it might be worth sharing that you’re not willing to take a pay cut. 

Garrido points out: “This is an interesting negotiation point because you may be in a situation where sharing your salary shows that you’re paid at the top of a range and would expect to continue at that rate or higher.

If you think you may be underpaid, or the job is a change that is simply not comparable to your current role, you might say something like,

 "My responsibilities in this role would be much different than in my last position so I don't think that my current salary would be the right measure of what I'd expect in this role.' If this is the case, make sure to follow that up with what salary you WOULD expect.”

4. What Do You Think is a Fair Salary for This Position? Why?

This is a great place to explain specifics about your worth, experience, relevant skills, and more. While it is important to note the average salary based on the market, this is where you can show how you’ll thrive in the position and why you’re worth the money. 

Use specifics from the job description to discuss responsibilities, and how those relate to your experience, and desired salary.

For example, if the job description notes that nights and weekends may be required, (think events, etc.) share how this is reflected in your desired compensation.

If there are qualifications listed in the job description as “nice to have”, illustrate how those add to your value. Show how you believe that this is reflected in the salary range.

5. How Did You Come Up With Your Desired Salary Number?

As noted above, there are a range of tools that can help you determine your desired salary. One to Online is a super helpful tool that allows you to search for positions, then evaluate wage and employment trends based on your state and/or zip code. If you’ve done research, (we recommend that you do) show this and explain the tools you used to conduct this research. Showing that you’ve put time into evaluating market trends and data highlights soft skills including motivation, data analysis, and self-worth. In addition, it also shows potential employers that you care enough about the position to put time and effort into your salary research.

With that said, while there are many online tools and resources out there, sometimes, leveraging your network can provide the most up-to-date insight.

Garrido encourages candidates to “Use your network as well as online resources to gather information. That way you can point your interviewer to exactly how you’ve reached your figure. They may be working with outdated information.” 

6. We Can’t Meet Your Salary Expectations. Is There Anything Else You’d Like to Negotiate?

Money makes the world go ‘round, and salary is important. Yet, there are a slew of other benefits you can negotiate to improve your compensation package based on your lifestyle. Consider benefits packages, stock options, schedule flexibility, and additional PTO.

If you love to travel, or want to have specific time off, consider negotiating this into your package. Additionally, working from home or creating a hybrid work schedule might positively impact your life. This can reduce commute time and transportation expenses. While your actual salary won’t change, a decrease in monthly expenses can help increase your disposable income.

Garrido finishes by explaining that “A job offer is about so much more than just salary. I’ve seen clients receive offers that had the same annual salary as their last role, but with drastically reduced insurance premiums. This meant that they actually had more money in their pockets! It’s very important to crunch those numbers. Beyond salary, what matters to you?

It may be hybrid work, professional development, a better title, a signing bonus, or something else. Consider what will make you excited about the role and go into that conversation knowing that you want to work together. If this is clear, the employer will likely try to reach a solution that works for everyone.

These conversations should not be adversarial. Rather than thinking of winners and losers, remember that you are all professionals who both want to make the relationship work.”

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This article was written by The Salary Project writer, Michele Lando.