Avoid salary talks in early stages of job interview

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Question: So many job postings give no indication of what a position pays. If you apply and get a callback from a potential employer, when is it appropriate to ask about compensation?

Answer: In my opinion, it is not a good idea to do it in the first discussion or first interview. A lot of employers will take it as (an applicant) only being concerned about compensation versus about being a good fit for both parties. There are various aspects of accepting a job, and one is to get an understanding of what the whole opportunity is about. The focus should be more … "Tell me more about the position and what the expectations are’ as opposed to ‘Tell me what is the salary for this position."

Candidates are also in a better position to negotiate salary or compensation once they have highlighted their skills and experience.

Q: Would you say this philosophy applies to any type of job, from entry-level to executive positions?

A: I think so. It’s generally good advice for anyone going into a first interview. They should not make compensation part of the first few lines of discussion.

Q: It sounds as if you are suggesting that a job applicant wait, then allow the employer to bring up the compensation issue.

A: That would be my advice, to let the employer or the person that’s doing the hiring drive the compensation-related discussion.

Q: Nobody wants to waste time, whether it is an applicant or an employer. Is there a polite way for an applicant to broach the salary topic?

A: I think it is an opportunity for a candidate to highlight their knowledge of the industry and certain positions in the marketplace. I would study salary trends for certain industries and certain job classifications, titles and responsibilities.

We have one resource. We do national salary guides every year for certain industries. You can find them online or request one from us. That would help a candidate prepare for that discussion, as in, ‘In ending our conversation, the average salary range for this type of position in this industry in this market is X and Y. Can you tell me where you see your position?’

Q: A recent Robert Half survey showed that a higher percentage of senior managers said waiting until the second interview to ask about compensation is more appropriate than asking during the first interview. How could waiting prove to be beneficial for an applicant?

A: In our surveys that we’ve done, only 31 percent of senior managers think it’s OK for job seekers to ask (about money) in their first interview. The majority of managers who interview for positions (38 percent) do not think it’s acceptable to bring up compensation. It’s probably better not to do it. If the employer is interested in your skills and experience and invites you back for a second interview, typically that is the time when we get into details about compensation, benefits and flexibility.

It’s almost like getting into a contract (to buy a home). You wouldn’t ask, "What are the terms of the contract?" before you even see the house. The first interview is to ascertain whether someone has the skills and experience and whether they’re going to be a culture fit — that’s both ways, for the candidate and employer. Once they’ve established that, there is room to discuss compensation in the second or third interview.

Q: If the employer presents a salary figure that is way below what an applicant desires, what then?

A: I think a good way to go from there is to ask, "What do you base that salary on?Is it market analysis, or budget, or the experience level you’re requiring?" That can open the discussion for a candidate to say, "I feel like I can add value in other areas … and I’d like to discuss a different salary range."

Q: If the suggested salary is within the applicant’s ballpark, how then does one prepare for salary negotiation?

A: It’s about expectations, and I think what people often do is, they’re so fixed on the dollar amount that they forget to talk about other benefits and opportunities outside of just the dollar amount of the salary. The incoming generation is interested in workforce flexibility, balance of life, recognition and title.

A lot of various things factor into job satisfaction. Issues may include whether an employee can work from home, or work half-days, or take their kids to soccer practice. Other benefits include personal time off or training benefits, where an employee is allowed to go to school, and will the company pay for it. Those kinds of things are also very important, as are 401(k) (plans), pensions and other things that go into a compensation package.

Q: How should an applicant prepare for salary negotiations?

A: When it comes to salary negotiations, you should not go into a salary discussion unprepared or not doing your research. Another would be under- or overestimating the leverage you have depending on your experience, and what the desirability is for your marketplace. You should research what is the unemployment rate right now for a financial analyst (for example), which you can find on the Department of Labor website. See how many positions are available for a specific skill set.

People may not get the base salary they’re looking for, but you can negotiate bonuses based on performance, so it’s not all about base salary, but base plus commission or plus bonuses.

Q: How should an applicant handle the whole salary issue if the applicant is fortunate enough to be juggling more than one offer?

A: I think professionalism is always advised in handling those discussions. If a candidate receives multiple offers, people should be careful in using this to leverage another offer. In other words, "I’m getting this from one company."

It may seem like an ideal situation to pit one against the other, but that is often perceived as poor professionalism. So I always would urge people considering multiple offers to look at the full compensation package, job satisfaction, the culture of the company and other benefits … which can often outweigh the dollar amount. People should not be shortsighted.