Salary Negotiations

Part I:
What salary range are you looking for?
"Let's talk about the job requirements and expectations first, so I can get a sense of what you need." That's a soft answer to a soft way to ask the question.
What did you make at your last job?
"This position is not exactly the same as my last job. So let's discuss what my responsibilities would be here and then determine a fair salary for this job." It's hard to argue with words like "fair" and "responsibilities"—you're earning respect with this one.
What are you expecting to make in terms of salary?
"I am interested in finding a job that is a good fit for me. I'm sure whatever salary you're paying is consistent with the rest of the market." In other words, I respect myself and I want to think I can respect this company.
I need to know what salary you want in order to make you an offer. Can you tell me a range?
"I'd appreciate it if you could make me an offer based on whatever you have budgeted for this position and we can go from there." This is a pretty direct response, so using words like "appreciate" focuses on drawing out the interviewer's better qualities instead of her tougher side.
Why don't you want to give your salary requirements?
"I think you have a good idea of what this position is worth to your company, and that's important information for me to know." Enough dancing–this is one last attempt to force you to give the number first. Hold your line here and you win.
You can see the pattern, right? If you think you sound obnoxious or obstinate by not answering the question, think of how he feels asking the question more than once. The interviewer is just trying to get a leg up on you in negotiations. If you give in, you look like a poor negotiator, and the interviewer is probably not looking for someone like that.
So stand your ground, and understand that the interviewer is being as insistent as you are. And it might encourage you to know that research shows that if you mirror the behavior of the interviewer, you are more likely to get the job. Sure, this usually applies to tone of voice, level of enthusiasm, and body language, but who's to say it doesn't apply to negotiation tactics, too? Try it. You could come away lots richer.

Part II:
If you are in a hurry to end an interview quickly, and this question is one of the first ones to be asked, you can eliminate yourself quickly by giving an unrealistic answer to this question. This should be one of the most thoughtful answers you can give in the process of being hired. You should defer this question until the company has told you they want to hire you for the job.
The interview is where you learn the preliminary details about the position, so you can determine what it would be worth to you if you decide to accept the position. It is wise not to focus completely on salary expectations during the interview, as you will also want to consider the other benefits being offered by the company. Do not state your salary expectations on an application or in an interview unless you already know enough about the job and what the company is willing to offer. You need to understand the "big picture" before you can determine what role the salary plays in rewarding your efforts.
If the interviewer pursues this question beyond a short answer, do not be intimidated by attempts to probe into issues. Fielding this question requires you to not let down your guard by confessing all your self perceived weaknesses, past incidents with former employers, or any other unpleasant information. If you are uncomfortable with where this question takes your conversation, have a good escape clause ready to throw the conversation into a different direction. To move on, you might say something like:
"I would like to table the issue of salary for the moment, until I know more about the job you will be asking me to do."
When considering a job offer, you should take into account how far you live from job site, what kind of health insurance, dental insurance, disability, retirement, perks, bonuses, and services the company has to offer you as an employee. These details are not usually covered at length during an interview, but they should have a big impact on your decision to balance all the elements in deciding whether or not to accept the salary being offered. Since there is so much other information needed to analyze the level of salary, you should insist on time to look over the company's benefit package before responding with salary expectations.

You should be ready to find out how much the company thinks the job is worth, and consider the figure they quote as their lowest bid for the job. If you are given a salary range, your response and decision should be based on the highest possible starting point for the range of salary provided. When you pursue the top end of the salary range, it sends a signal that you feel qualified and confident in your own ability to perform the job.
It will be helpful to your decision to find out how much flexibility is in their starting figure, and how often they give salary reviews once you are working. It is very likely that your most significant salary boost will happen on the day you are offered the position. Once the company makes you their employee, you will be subject to all the rules, regulations, and drawn out excuses for slowing down your financial progress.
For many people, the quickest way to move up the corporate ladder is to change companies, and negotiate a reasonable increase in wages with each new company you work for. All your detailed salary discussions should take place at the end of the hiring process, and after you have confirmed the company's interest in bringing you on as an employee. Until you have an offer for employment, you should firmly defer discussing your salary in detail.
Try using responses something like this:
"We can talk about salary once I have had a chance to review more details about the job, and the benefit package available from your company. It does not make sense for me to talk about salary before knowing if I am a fit for the position. I am sure you are willing to offer a fair wage for the position, but right now, you are more qualified to tell me what the job is worth to the company than I am."
If an interviewer insists on you quoting a salary range, or asks you to tell them the minimum amount you are willing to accept to do the job, and this action takes place early in the interview, you will need to be strong enough to insist on more details before you can answer their question. Tips for doing this without appearing circumspect are to include the following types of comments:
"You want me to give you a salary I want for the position, but I am not sure what your position involves yet. I'm sorry, but I need more information about what kind of work you are expecting me to do for you."
"The salary I need will depend on what benefits you offer, and how much I will have to pay from my salary to take advantage of your insurance plans and other expenses."

"Are you offering me a job right now?"

The idea here is to make the interviewer realize that you do not have enough data to quote a salary minimum, or even a reasonable range until you are able to learn more about the details of the job, and what the company is willing to offer in pay AND benefits. If the interviewer insists that the interview cannot proceed without first knowing what salary you have in mind, consider thanking them for their time and leaving the interview. All these tactics are aimed at getting the company to be the first to name a salary for any position.
PART III:
“What are your salary expectations?”
Not an easy question to answer at your interview – as I’ve looked at other tough interview situations over the past few weeks (such as “reasons for leaving your job“), I thought it was worth covering how to deal with being asked what salary you expect to get.

First of all, you need to know that you don’t have to disclose your current or past salaries and you don’t need to respond to this question. But given you are interviewing for a new job, the manner in which you deal with the question can affect the outcome of the interview, so it is worth being prepared.

In a lot of cases, especially early on in your career, you will be expecting an increase in salary when you move to a new job – usually because the new job may be a step up for you and as such has more responsibilities.

You also need to remember that your new employer really has no way of finding out your previous salary, so if you want to exaggerate a little to help justify an increased expected salary, then feel free to do so – it’s not a big deal, but please do be conscious that you shouldn’t go to far with this. Adding a couple more £k to your current salary isn’t a big deal.

How to respond when asked what your salary expectations are

Let’s assume you want more money than you are getting just now. If the salary hasn’t been disclosed for the job, then you need to carefully discuss the potential with your new employer.

You can start off by saying something along the lines of, “Well, obviously I would expect a salary that is in line with the level and responsibilities of the job and my experience - what starting salary do you offer for this job role?” – this is a great counter to the question. It doesn’t commit you to a specific figure, and moves the discussion back to them. They will always have a figure in mind from the start of the interview – most employers just want to see if they can hire you for less money!

There are several responses they can give to this:

A figure that is way less than you want (in which case you need to think about if the job is really suitable for you)
A figure that is a little lower than you want (then you need to put an argument forward for a higher starting salary)
A figure that is suitable or higher than expected (take it – or haggle some more if you’re feeling cheeky!).
How to haggle for more money

It isn’t easy and you could quite easily mess up the entire interview if you go to far with this – all the same, it is worth it in many cases – you should take whatever chances you can to improve your own person situation.

There are several arguments you can give:

I would have expected a higher starting salary for this position
My current salary is higher than that
That salary is a little lower than I think I need right now
I think my experience would warrant a higher salary than that
Regardless of the approach you take, you should always end it with a question. You do not want to put forward a staunch argument with no scope of discussion – you need to keep the discussion moving in your favor by always giving your interview a tight breadth to respond (rather than leaving the conversation wide open which could result in them changing the subject).

Your goal should be to maintain control of the discussion until it is resolved in your favor – the danger is that you can come across as to stubborn / greedy / etc so it is worth preplanning your approach.

PART IV:
What are your salary expectations?

This is one of the hardest questions, particularly for those with little experience. The first thing to do before going to your interview is to research the salary range in your field to get an idea of what you should be making. Steer clear of discussing salary specifics before receiving a job offer. Let the interviewer know that you will be open to discussing fair compensation when the time comes. If pressed for a more specific answer, always give a range, rather than a specific number.

This is a tricky one. They want you to give them a (hopefully for them) low number so they can offer you a bit less than this and save themselves a bunch of money. Don't do it. Otherwise, you could end up with a job you would like to have at a salary you don't want (but one you said you'd take). On the opposite end, you can also price yourself out of a job. If the high end of the position is $40,000 and you say you want to be paid $75,000, you're not going to be hired.

So here's what I recommend: don't go to any interview without knowing what the salary range for the position is. It's that simple. If you found the position through a headhunter, you can ask him the salary range with no awkwardness at all. If you're dealing with the company directly, you need to be a bit more cautious, but you can easily confirm the pay RANGE (maybe not the exact salary) rather easily.

Then, once you know the range, I suggest you answer the question with something like the following:

My current base salary is $XX,XXX with a XX% bonus, and stock options. This is one reason I’m looking for a change – my compensation is too low based on my experience and fair market value. My expectation for my next job will be fair pay for my skills, experience, and the responsibilities I’ve been given – with an upside for exceptional performance.

PART V:
Salary discussions during the interview

Never bring up salary during an interview. Always let the employer bring it up. The same principles apply as above for cover letters. That is, try to postpone salary discussions until after an offer is made. Indicate that you are open for negotiation but prefer to wait until after a hiring decision has been made. Again, if you feel that they are really pushing for a figure, try to give a range, not a specific dollar amount and let them know it depends on the entire package including benefits.

Don't worry if salary is not discussed during the first interview. It likely will be in the second or at the latest, will when you get an offer! In fact, salary is usually best left for discussion until after the employer has decided that they want to hire you. By doing this, you minimize the risk of taking yourself out of the running.

When an offer is made - negotiating salary

Employers will often provide you with a salary amount when an offer is made. Take some time to consider it; a day or two is usually acceptable. Now that they have decided they want to hire you, you may be able to negotiate a little. But you must decide what you are willing to accept, taking into account the likelihood of receiving other offers, etc. Take all factors into consideration when making your decision, including the type of work, level of responsibility, working conditions, opportunities for further education, salary, etc. Ask about vacation, extended health and dental insurance, education re-imbursement plans, etc.

Consider negotiating in some perks instead if the organization has a rigid salary structure. Depending on the level of the position and current economic conditions, consider asking about a signing bonus, company car, paid professional development, access to a computer for home use and/or stock options. A flexible work schedule and working from home occasionally may also be possible. Note: if the economy is in a downturn, many of these perks will not be available (egg. signing bonuses) so use your judgment and common sense when deciding how much room you have to negotiate.

Most people are apprehensive about negotiating for salary or benefits. Don't be... it is quite common. But do remember to remain professional about it! No matter what, don't be rude or arrogant. Think carefully about what makes you worth a higher salary than the one they have offered and be prepared to articulate this to the employer. It is during this time that you'll be glad you did your research.