A salary requirement is a basic salary and other compensations required for a person to accept a position. The company may ask you to mention the cover letter’s salary requirements, or the interviewer may ask you about salary requirements during the interview.
Calculating the Salary Claim
Avoid being surprised and arrive at the interview with an idea of the amount you want to receive. To calculate your salary claim, consider the following factors:
It is essential to know how much the market is paying for professionals in your area and with your experience. Research the desired position’s salary level about its size (small, medium, or large).
Talking to colleagues can help a lot. To avoid being invasive, avoid asking your colleague’s salary and ask how much you can inform as a salary requirement for the vacancy. He will undoubtedly respond based on his professional experience, and this will give you a sense of the salary that is being charged.
Cost of living
To establish a realistic value, you must consider the cost of living in the region where you will work. Be careful not to report too high a value; a professional who works in a large city will have a higher salary than the same professional from the countryside. Knowing your fixed expenses (with housing, food, transportation, etc.) is essential to establish a salary that will meet your needs.
Your salary requirements should be in line with your career moment. If you are a beginner, companies usually offer the minimum established for the category. Now, if you already have some experience, you can slightly increase your salary requirements, as the results obtained previously tend to justify this increase.
The current status
The situation you are in also affects the salary requirements. For example, if you have been unemployed for some time, it is prudent to stay close to the average wage. It may happen that you are employed and negotiating with another company. In this case, it is possible to ask for a little more.
Note: Be careful not to fall below market value
The market regulates the salary offered according to the demand for professionals. Try to research professionals’ offers with your qualification and do not ask for less than the market offers just to be chosen. Putting a low value on the salary claim is no guarantee of vacancy.
Asking for a very high value and out of the market, thinking about trading later, is not a good strategy. The company can understand that you will not settle for less or try to propose.
An employer can ask you to include your salary history instead of (or in addition to) your salary requirements. A salary history is a record of your previous earnings. The name of each company you worked with and your job description, wage, and compensation plan are usually included. The distinction between the two is that your salary background reflects what you paid in your former role. Your salary requirements or expectations are the amount of money you hope to make in the job.
Facts to Know About Salary Requirements
Discussing salary is still taboo. People, in general, feel a certain discomfort when talking about the subject. Many companies do not put salary information in the job description, and most candidates are not prepared to answer that question. Even trying to postpone the time to talk about salary requirements, it is difficult to escape the issue in practice. Sooner or later, we will need to talk about our salary requirements. Following are some of the facts about salary requirements that you should know:
Reasons why employers ask it
The recruiting manager will say whether they can afford you based on your salary experience. The knowledge saves both the supervisor and the candidate time and resources whether the employee’s actual wage, benefits, and overall compensation exceed what is available within the budgeted salary range. A salary history that indicates a candidate has held increasingly responsible and well-paid positions demonstrates that this person was competent, ambitious, and promoted.
Asking requirement-legal or not
Employers have the right to ask you for your salary requirements or conditions. However, some states and cities prohibit workers from asking for their last pay. For the current information on this salary requirement, as well as the laws that apply in your city and state, contact the state labor department in your jurisdiction.
Where and how to include it
One of the most challenging thing that every job seekers face is when they are asked to provide their salary requirements. You may find it challenging to come up with the correct number because you realize that making the wrong salary request may reduce the chances of being interviewed. Still, there are ways to mention the salary requirements in the cover letter effectively. Take the following examples:
The improper or wrong way to include salary requirement:
“Salary is important, but it’s not the only thing I consider while looking for work; however, my salary requirement is $6000.”
The proper way to include salary requirement:
“My salary expectations for the role are based on the job description, my analysis, my previous salary history, as well as my expertise is between $60,000 to $70,000. For instance, the salary is negotiable based on other related considerations such as future incentive opportunities, and other benefits.”
Salary requirements-include or not
When is the right time to talk about salary requirements? Experts recommend only when asked. Do not inform your salary requirements in the resume; only do this if the company requires it. At the interview time, try to find out more information about the company, the vacancy to be filled, benefits, and growth opportunities, and then mention the salary requirement if you are asked.
Examples & Templates
Here are the free downloadable templates that can be customized in accordance with the requirement:
Tips for Disclosing Salary Requirements
The selection process has advanced, you have a good chance of being chosen, and it is time to negotiate the salary with your future employer. Even with a clear salary claim in mind, you should take some precautions and consider these tips:
Provide a range
Avoid informing an amount in numbers, talking about minimum wages, and, preferably, inform the salary range that fits you. It will give a margin of negotiation for both parties. You must give the image of being aware of its value about the position it will occupy.
“I will request an annual salary in the range of $12,000 to $22,000 after analyzing the work posting’s specified obligations and assessing the true benefit I would bring to the company.”
Do not simply pick numbers out of a hat. To find wage norms in the market, use actual data from places like the Bureau of Labor Statistics or PayScale. Up-to-date guides for industry-specific pages, such as Rig Jobs, can also be found, and you can also calculate the cost of living.
In some instances, you can avoid misunderstandings by emphasizing that the target wage is negotiable. You should provide an amount or a set and then qualify it by saying that the salary is negotiable. Alternatively, it would help if you stopped giving specific figures and clearly state that the salary requirements are negotiable to meet the company’s needs. It is still a good thing to keep in mind that the versatility is determined by considerations such as the job, non-salary pay, and other advantages.
“Of course, the salary is negotiable based on other considerations such as future incentive opportunities, growth, and additional benefits.”
Never mention salary directly
Do not explicitly answer the salary requirements. Instead of emphasizing the value of compensation statistics in your cover letter, aim to downplay it. If you are not sure about the company’s salary policy or are concerned that your aspirations would preclude you from getting the job, this might be a good choice.
Frequently Asked Questions (FAQs)
Not necessarily, but employers have the authority to reject you if he does not like your salary requirements.
How much you should ask for a salary depends on multiple factors such as your skills, experience, prevailing market rate, cost of living, and others.
Do not dismiss requests for salary requirements. Even if you have mentioned a specific salary requirement according to your expertise and market rate, you are flexible and willing to negotiate. That is the most effective way to ensure that your specified salary requirements do not prohibit you from pursuing your goals.