How to ask a candidate their salary expectations

The cost of expectation

When asking a candidate about their salary expectations, it's important to approach the topic with professionalism and sensitivity. Discussing compensation can be a delicate part of the interview process, but it's a crucial aspect for both parties.

Employers need to ensure that their budget aligns with the candidate's expectations, while candidates seek a package that reflects their skills, experience, and market value. Handling this conversation thoughtfully can set a positive tone for the rest of the hiring process and contribute to a transparent and trust-based relationship between the employer and the potential employee.

Here are some tips on how to do it effectively:

Before the interview

Before the interview, it's beneficial to include a mention of salary expectations in the job posting. If possible, provide a range or note that salary discussions will be part of the interview process. This sets the expectation early and helps filter out candidates whose expectations are far beyond your budget.

During the interview

During the interview, timing is crucial. Wait until later in the conversation, after you’ve had a chance to discuss the role, responsibilities, and how the candidate’s skills align with the job. Providing context is essential; explain that understanding their expectations helps ensure a good fit and avoids surprises later.

How to phrase the question

When phrasing the question, you can be direct and open-ended, such as, “Can you share your salary expectations for this role?” or “What are your salary expectations for this position?” Alternatively, base the question on research by asking, “Based on your research and understanding of the market, what salary range do you expect for a position like this?” If you prefer a range-focused approach, you might ask, “To ensure we're on the same page, could you provide a salary range you're aiming for?”

Handling responses

When handling responses, be transparent. If the expectations align with your budget, affirm that. If not, explain your budget constraints and see if there’s room for negotiation. If their expectations are higher than your budget, ask for more context, such as, “Can you explain how you arrived at that figure?” or “Is there flexibility in your range?” Additionally, avoid bringing up salary discussions too early in the process unless necessary; focus first on the candidate’s skills and fit for the role. Always be respectful, showing that you value their expectations, and avoid making them feel undervalued. Know your range and be prepared to explain why the range is set as it is.

Sample dialogues

Sample dialogues can be very helpful in guiding the conversation. For instance, you might say, “Now that we’ve discussed the role and your qualifications, could you tell me what your salary expectations are for this position?” Or, “To ensure we're on the same page, can you share the salary range you’re targeting for a role like this?” Another example could be, “We want to make sure that the compensation package aligns with your expectations. Can you provide a range that you’re aiming for?”

Approaching the topic with clarity, respect, and openness can help both you and the candidate ensure a good match and a positive outcome. A well-handled salary discussion not only reflects positively on your organisation but also helps in building trust and setting the stage for a mutually beneficial professional relationship.

By being transparent about budget constraints and understanding the candidate's expectations, you can navigate this conversation effectively, paving the way for a fair and satisfactory agreement. Remember, the goal is to find a balance where both the company and the candidate feel valued and respected, ultimately contributing to a successful hire and long-term satisfaction.

Visit the Fair Work Ombudsman for resources on salary expectations and job market insights, as well as Seek Salary Guide, which offers insights into average salaries across various industries and roles in Australia.