“WHAT is your expected salary?” is a common question asked during job interviews.
Money is often a big motivating factor to switch jobs. A recent survey by Michael Page revealed that 72% of its respondents cited remuneration and benefits as top considerations when accepting job offers.
By asking the question, the interviewer, among other things, wants to gauge what you have in mind for your pay packet, your interest in the job and if money is the main motivating factor.
Will a small salary allow you to achieve your long-term goals, or will it deprive you of potential earnings in years to come, which could be substantial.
While there are many factors to consider, you will need to strike a balance between money, career trajectory, long-term goals, medical benefits, work culture, company stability, leadership and flexi work arrangements.
Your skills and expertise, knowledge and experience as well as attitude play a big role in securing a job. But if the job you do is in high demand, you can potentially negotiate for a higher remuneration. Having additional skill sets also pay in the longer term.
“It is important to know your value. Your value to the organisation is sometimes more than just the job designation,’’ said recruitment agency Michael Page Malaysia regional director Nic Chambers.
It depends also on what you have in terms of experience, skills and knowledge and whether the company you are applying to is in need of those skills.
If so, it puts you in a better position to command a higher salary, he said.
Even though job titles are the same, the difference is quite stark with knowledge, expertise and skills, he added. “It is the peripheral skills you have developed over the years that will allow you to take the industry standards for the salary benchmark and increase it,’’ Chambers added.
He believes candidates should negotiate for a higher salary during an interview, but do it at the later rounds of the job interview process. But you should do your research to know what your role is worth before stepping into the interview.
One way to do that is to benchmark yourself against available data. There are several sites offering such information including Michael Page Malaysia Salary comparison tool, Payscale Malaysia, Kelly Services Salary and others.
The tool offers a comprehensive wage overview of all major sectors in various markets, the key roles and functions, and their respective salary estimates.
With this information, you are able to calculate the average salary range based on sector, location and work experience.
“With all the research, you will be able to enter a salary negotiation with a lot more confidence, especially with all the hard data to back you up,’ he said.
However, Chambers said, “Keep in mind not to let your emotions take over, stay calm and speak respectfully, professionally and where possible, use industry data to support your conversation.’’
The mistake job candidates often make is to base their salary negotiations on their last-drawn salary. Using that as a yardstick is by no means the only gauge, even if you want to earn more than your previous job.
Unless you have gained zero skills since your last job, Chambers said “ignore your previous salary altogether. Instead, look at your objective value to the company and compare that to the industry standard that your peers are getting.
“Candidates also need to avoid getting drawn into hearsay. All too often, candidates reference a situation where someone they knew received a 40% increment and take that as the industry standard. It is not the case,’’ he said.
He added that, on the surface, an increment of this size may sound excellent, but without knowing the specific details, comparisons can’t be made.
“Obviously, a lot of hiring managers tend to use your previous salary as a benchmark for your next salary. So, it is especially crucial how you promote yourself to them. Also, bear in mind the type of company you are applying to, as bigger firms may have a bit more leeway to up your pay while smaller firms would usually have a tighter budget.’’
If you under-negotiate your salary, it will certainly have an impact on your lifetime savings.
However, Chambers believes there are other factors that will have a greater impact.
“Ultimately, the candidate’s core fundamental skill set and perceived value to the organisation will have a greater bearing on the offered salary. Likewise, the level of demand in the market for the said skills will also have a significant bearing on the salary offered.’’
While money may be a key factor, look at the total package in terms of benefits that come with the job.
Chambers said accepting a job purely based on salary increment is not advisable, as it often leads to candidates leaving the company within 12 to 18 months.
Whatever you do, don’t price yourself out of the market. Align your compensation with your overall performance and long-term career goals. But don’t regret later for not negotiating.