Answering the question “What Are Your Compensation Expectations?”
One of the trickiest interview questions is: “What are your compensation expectations?”
It may also be asked as:
- What are your salary requirements?
- What do you expect to be paid?
It’s a sensitive, make-or-break moment in the interview. The best approach? Do your research, know your minimum acceptable pay, and prepare your answer.
Why Employers Ask
- Check alignment: They want to see if your expectations match their budget before moving forward.
- Assess realism: A reasonable range shows you understand the market. Too low may suggest inexperience; too high could signal overqualification.
- Gauge long-term fit: Your current expectations hint at what you may expect in the future.
How to Prepare and Respond
- Research the market
Use tools like Glassdoor to find typical salaries for the role in your location. Adjust if your desired pay is outside the norm, and be ready to justify it. - Know your minimum
Factor in living costs and financial needs. Identify the lowest amount you would accept before the interview. - Give a range, not a number
A range allows flexibility and increases the chance your expectations fit their budget. - Emphasize flexibility
Show you’re interested in the role and company, not just the pay. This builds goodwill and keeps discussions open. - Aim slightly high
Position the top of your range just above market rate to show ambition and confidence—without pricing yourself out. - Be honest
Base your range on your actual skills, experience, and achievements. - Explain your reasoning
Be ready to link your desired pay to your qualifications, past results, and the value you can deliver. - Prepare to negotiate
Whether they meet your range or not, be ready for discussion. Your research and preparation will give you confidence.
Key Takeaways
- Always offer a salary range rather than a fixed number.
- Research market rates before the interview.
- Know your minimum acceptable pay.
- Be flexible, confident, and ready to negotiate.
- Back up your request with clear evidence of your value.
With preparation and confidence, you can answer this question in a way that positions you as both professional and realistic—while securing the compensation you deserve.