Salary Expectations - how do you know what to aim for?

Having recently compiled data from across the UK for a salary survey we conducted in our Legal Accounts division (results to be published on our website in July if you’re interested!), it got me thinking about how it will affect people’s expectations of their worth. And by “worth”, I’m talking specifically about the basic salary they are paid by their employer to do the job they do.

A common mistake I see people making is relying purely on one source of information and believing that to be sufficient evidence. I do hope that our salary survey will prove to be a useful, accurate measure for employers and employees alike, but it should only be viewed as guidance. For example: the level of responsibility and day to day duties of a Management Accountant can differ widely from one firm to another, so going by a job title on a salary survey alone is not sufficient.

Another source of information that often misleads us is job vacancies. An individual might read through a job advert, mentally tick off all the duties and reach the conclusion they should therefore expect to be paid the top end of the salary bracket. Securing interviews for these positions will provide even stronger evidence that this is achievable. Of course, on some occasions this will indeed be the case, but if you’re only reaching interview stages and not securing offers, it may suggest otherwise.  

As a recruiter working in a very niche market for many years, I like to think I have a pretty accurate view of what is an achievable salary expectation from those I meet with, and when conducting interviews with jobseekers, it’s an important part of the registration process to ensure that expectations are realistic, which from time to time does involve bursting a few balloons.

Naturally, I don’t expect everyone to take my views as gospel (I’d like it, but I don’t expect it), but you can generally rely on experienced recruiters to have a good understanding of what would constitute a reasonable expectation. It’s sensible to look out for relevant salary surveys and vacancy adverts to see what might be achievable, but be wary of placing too high an emphasis on them as you might find you’re pricing yourself out of being considered for good opportunities.

Managing salary expectations in the hiring process

In the increasingly competitive “war for talent” we are experiencing in the world of recruitment these days, you’d be forgiven for being a little surprised to hear that there are employers who will go through a lengthy application and interview process and then knowingly offer their preferred candidate a salary lower than the figure they’re looking for.

Certainly it comes as a surprise to the candidate, and not a nice one. We’ve experienced it on a couple of occasions recently despite making the individual’s salary expectations explicitly clear from the outset when making the initial introduction.

It’s understandable that the employer ultimately makes the decision on how much they feel each individual is “worth” in relation to an opportunity within their business, but if there is a difference between the salary expectation of the candidate and the employers’ valuation of their skills and experience, this really should be addressed as early as possible in the hiring process to save wasted time and to improve the chances of securing the desired individual.

If it’s not dealt with until the point of offer, the underlying message sent to the jobseeker is: “we think you’re good, but not as good as you think you are” and all the faith and buy-in that has been built up during the interview process is immediately put at risk. The jobseeker, believing they’d gone through this process with their minimum expectations established, may feel undervalued and misled. There’s a high chance they’ll decline the offer and walk away from the process with a very low impression of the firm employer brand.

Managed properly this can be avoided:

• If a candidate’s salary expectation is above the level the employer is prepared to go, they shouldn’t be entering the interview process, unless it’s made clear to them that they are asking for a salary above budget and would need to lower their expectation. They may choose to walk away, but better that happen  earlier rather than later in the process.

• If the candidate is within budget range but they are pricing themselves out of the running by asking for a higher salary level than other comparable applicants in process, this should be addressed. They may not be aware they are asking for a salary level above market rate and may just need their expectations managed before reaching the end of the process.

These conversations can easily be held by recruiters who ultimately want to assist all parties in reaching a successful conclusion to the process. They should also be able to help in identifying early on if a difference in salary expectation is likely to be a deal-breaker or something that can be managed.

Managing salary expectations in the hiring process

In the increasingly competitive “war for talent” we are experiencing in the world of hiring these days, you’d be forgiven for being a little surprised to hear that there are employers who will go through a lengthy application and interview process and then knowingly offer their preferred candidate a salary lower than the figure they’re looking for.

Certainly it comes as a surprise to the candidate, and not a nice one, but it happens and we’ve experienced it on a couple of occasions recently despite making the individual’s salary expectations explicitly clear from the outset when making the initial introduction.

It’s understandable that the employer ultimately makes the decision on how much they feel each individual is “worth” in relation to an opportunity within their business, but if there is a difference between the salary expectation of the candidate and the employers’ valuation of their skills and experience, this really should be addressed as early as possible in the hiring process to save wasted time and to improve the chances of securing the desired individual.

 If it’s not dealt with until the point of offer, the underlying message sent to the jobseeker is: “we think you’re good, but not as good as you think you are” and all the faith and buy-in that has been built up during the interview process is immediately put at risk. The jobseeker, believing they’d gone through this process with their minimum expectations established, can feel undervalued and at worst, misled. There’s a high chance they’ll decline the offer and walk away from the process with a very low impression of the firm employer brand. 

Managed properly this can be avoided:

• ·         If a candidate’s salary expectation is above the level the employer is prepared to go, they shouldn’t be entering the interview process, unless it’s made clear to them that they are asking for a salary above budget and would need to lower their expectation. They may choose to walk away, but better that happen now than later in the process. 

• ·         If the candidate is within budget range but they are pricing themselves out of the running by asking for a higher salary level than other comparable applicants in process, this should be addressed as soon as this becomes clear. They may not be aware they are asking for a salary level above market rate and may just need their expectations managed before reaching the end of the process.

These conversations can easily be held by recruiters who ultimately want to assist all parties in reaching a successful conclusion to the process. They should also be able to help in identifying early on if a difference in salary expectation is likely to be a deal-breaker or something that can be managed.

Career progression or just more money?

When discussing a jobseekers motivations for looking for a move, two of the most common reasons I hear are career progression and for a payrise. The two are closely linked, with the first generally taking care of the latter, but too often they are confused as one and the same thing.

In many circumstances it seems that a jobseekers idea of career progression correlates to earnings and earnings alone. Understandable that this is seen as a positive move, but if you’re really looking for career progression, the salary of your next position shouldn’t really come in to the equation. Naturally, very few of us are prepared to take a drop in salary, but when considering your career earning potential, the salary you earn over the next 12 months will have little to no bearing on what you might be earning in a few years time. It’s the work itself that will make the difference.

If you want to significantly increase your earning potential, be patient and don’t focus on what your monthly income will be over the coming year. Think about what your earnings will be over the next 5-10 years. A position paying £3k more than another has the short term appeal of the higher salary, but as a stepping stone will the position itself help you climb to the next step up in your career faster than the other? Of course it could, and if so – result! If not however, the role with the lower salary but better development could be the sensible option.

Consider a Sliding Doors situation. On one universe you take the role paying £3k more and 5 years down the line you’re doing the same job as you are now and are again looking for a step up in your career. Meanwhile in the parallel universe the other you, who took the lower paying role, has already gained 5 years experience in a more senior position, developing their skills and experience accordingly. Chances are they’ll have already overtaken your earnings and now they also start looking for a new job, but in this scenario they’re looking for a job two steps higher up the ladder than you are. If they stay on their toes they’ll remain the higher earner right through till retirement and their overall career earnings will dwarf yours.   

Of course, it’s not always as clear cut as in this example, and it’s not every day we find ourselves with two job offers on the table. However, the same logic should be applied if after resigning your current employer tries to persuade you to stay by matching the salary on offer elsewhere. A short-term win perhaps, but how will staying affect the long-term path of your career?