Salary requirement responses play critical role in employers’ decisions to grant interviews

Dear Sam: Why do employers insist on asking for salary requirements? I’ve thought about not answering the question as I have no idea what to say without knowing the particulars of an organization, but I don’t want to be overlooked because I don’t respond to their request. Also, where do I list a salary requirement? Should it go on my resume or cover letter? – Chloe

Dear Chloe: Very few job seekers like to field this question before they get the interview. The question is used as a screening tool for employers who do not want to waste their or your time if they can’t afford you and you can’t afford to work for them. When you are asked for a salary requirement, you would place this information on your cover letter, usually toward the end so to minimize any negative impact it may have. Of course, never offer this information unless specifically requested. When incorporating your response into a cover letter, consider this example: Per your request, my salary requirement is $45,000-$50,000, but is negotiable based on the complete benefits package and advancement opportunities.

Of course you can also attempt to not answer the question with a statement such as: I would welcome the opportunity to review salary requirements once a mutual interest has been established.

You could also state your intentions as: While salary is an important factor, it is more important for me to work for an organization that values diversity, thrives on integrity, and empowers its employees, therefore my requirements are very flexible and negotiable.

Now on to how to tackle this dreaded question. First, it is imperative you perform some research to find out what you are worth. Review reports on salary ranges for the types of positions you are seeking, not only based on the title of the position but the industry to which you are applying. Take into consideration the location of each employer and the cost of living in different cities. Also, make sure you review the total compensation package. While one organization may offer a higher salary they may not offer health insurance, which would increase your personal expenses and offset a higher salary. Some resources you may want to reference when researching salary trends include www.salary.com, www.salaryexpert.com, and www.payscale.com. If relocating, you may also want to research the cost of living at such sites as www.bankrate.com or get general information on cities of interest at www.findyourspot.com.

There are several ways to respond (or not respond) to this question each with their own levels of risk. Let me review the top 5 most common responses and the risks associated with each.

Response One: Tell the hiring manager what you want to earn. If you have a base salary requirement state it as such so to tell the hiring manager that you probably expect a little more. The risk in using this approach is that you will be immediately disqualified because your amount is too low or too high.

Response Two: Give the hiring manager a range. Most employers have a range for each position, and the hope when using this strategy is that your ranges overlap at some point. You can either state that you want compensation in the "Mid 40s" or are seeking compensation from "$40-50K." The challenge here is not presenting a range where your lowest amount is their highest available compensation or vice versa. You could secure a job earning $50K instead of $56K, just because you put your range as $50-60K. Hence the reason the second strategy of "Mid 50s" might work more to your favor.

Response Three: Avoid the question by stating that you are seeking competitive compensation for someone in your field, or are flexible as to your total compensation package. By doing this you avoid answering the question and disqualifying yourself because of a number, yet you answer the question to a certain degree. You also tell the hiring manager, by using the second approach, that you realize that there is more to a compensation package than just your salary. Attractive benefit programs, great working environments, flexible work arrangements, etc., also contribute to your total compensation package. The risk here is that you will be eliminated anyway because you didn't give the hiring manager a hard number.

Response Four: Communicate that you would love to discuss your salary requirement once a mutual interest has been established. This gives you the opportunity to assess the functions of the position to which you are applying, and fairly evaluate what you should be compensated for such an engagement. Again, the risk is that you will be eliminated for avoiding the question.

Response Five: Don't respond. A lot of candidates take this approach and hope their experiences, accomplishments, and skills pull them through despite avoiding the question entirely. After all, if you sing on paper shouldn't that be enough regardless of what you want to be paid? Well, sometimes not. Unfortunately, if you disregard their request, you resume might also be disregarded.

The moral of the story is, you have to make an educated decision on which strategy you want to employ, and whether the risk involved it worth taking.