Why Sharing Your Salary Expectations First Can Be Smart—If Done Right

The conventional wisdom says: "Never share your salary expectations first." But as a career coach with extensive HR experience, I’ve seen how this approach can sometimes backfire.

The idea is that revealing your number early will somehow weaken your bargaining position. While this tactic works for poker games, it can backfire in job negotiations. Employers value transparency and often work within pre-defined budgets. In addition, keeping your cards too close to your chest might make you seem unprepared or even too flexible and desperate.

So, let's talk about how to share your salary expectations in a way that's both smart and professional, setting the stage for a win-win offer.

What to Do Instead: A Strategic Guide to Salary Expectations

If keeping your salary expectations a secret isn’t the best move, what should you do instead? The answer lies in preparation. Salary discussions don’t have to feel like a game of tug-of-war if you approach them with solid research, clear priorities, and realistic expectations. By arming yourself with the right data and framing your expectations effectively, you can have an open and professional conversation that sets the tone for a fair offer - one that works for both you and the employer. Here’s how to do it right:

1. Do Extensive Research

Use tools like Glassdoor, Payscale, and LinkedIn Salary Insights to benchmark salaries for your role, region, and industry. Check if the job description includes a salary range to gauge what’s realistic.

2. Calculate the Total Value of Your Compensation

Salary isn’t just about the number on your paycheck. Account for:

• Bonuses
• Equity or stock options
• Health insurance
• Pension contributions
• Phone allowance
• Education budget

This gives you a clear picture of what your current package is actually worth in the market. It's also important to consider which of the benefits your currently have are non-negotiable (such as, keeping your pension scheme or health insurance) and which of those benefits you could exchange for more money in your salary.

3. Understand Gross vs. Net Salary

Gross salary (before taxes) is often quoted, but your net salary (take-home pay) is what impacts your lifestyle. Know how taxes, deductions, and other factors apply to your income. You can use free online salary calculators to give you an idea.

4. Connect Salary to Your Life Needs

Determine how the offer aligns with your financial goals:

1. Does it cover your living expenses comfortably?
2. Will it help you achieve savings or investment goals?
3. Can it support the lifestyle you want (e.g., travel, education, hobbies)?

5. Make Your Expectations Realistic

A new job often brings a pay increase, but it’s important to keep expectations reasonable. Statistics show that:

• Most people can expect a 10-20% salary increase when changing jobs.
• In high-demand fields or senior roles, the increase might be higher—but it’s rare to see jumps beyond 30% unless moving to a significantly different role or industry.

6. Communicate Your Expectations Smartly

When asked about salary, frame your response in a way that shows flexibility while setting clear boundaries. For example:

"Based on my research and the value I bring, my expectations are in the range of X to Y. X is the minimum I’d consider, Y feels very competitive, and Z would make me excited to accept immediately."

This approach:

• Demonstrates preparation by referencing your research.
• Sets a realistic range that aligns with your goals and market data.
• Leaves room for negotiation without locking you into a single number.

Food for thought:

As you prepare for job interviews, don’t let the salary question catch you off guard. While many candidates focus on the job description and potential fit, your salary expectations are just as important to prepare for. Employers appreciate transparency and preparedness, and if you're clear on your expectations, it can set the tone for a respectful and efficient negotiation process.

Think about what you need and want from the offer—not just in terms of salary but the entire compensation package. Do your research to understand typical pay ranges in your industry and region, and remember that salary is only one piece of the puzzle. By knowing how much you need to meet your goals and comfortably live your life, you’ll be able to communicate a reasonable range and show that you're serious, professional, and realistic.