In the latest of our long-running series on helping you prepare for popular questions asked at job interviews, we break down the question “What are your salary expectations?” helping you towards an answer that will increase your chances of being considered.

Why recruiters ask this question

Recruitment consultants are in the business of relationship building and networking, and this requires a great deal of emotional intelligence. But we’re also pragmatists. Every hiring manager has a budget, and while there’s usually wiggle room, we know there’s no point to continue a candidate if their expectations are wildly above our capacity.

Another reason we ask “What are your salary expectations?” is because we want to see if you know your market value. In finance, understanding the market is critical, and so we tend to favour people who can make a case for value that has some research to back it.

Why you should never answer this question directly

Most people will tell you never to give a low figure. Of course, it’s important not to undersell yourself, but we feel that giving any single figure puts your position at risk. If it is too low, your recruiter is very likely to accept that, meaning you lose money. But if you give a figure that is too high, you may end up spooking the recruiter and losing out on the opportunity.  

Supplying a salary figure also means you ignore other benefits frequently offered together with salary in finance & banking, such as bonus and equity.

All this means it is essential to prepare ahead, and go in to the interview calm and collected!

How to answer this question

Money is an uncomfortable topic for most people. One of the best ways to address this question is to open up a conversation about the role. Ask your hiring managers to confirm the particulars that would slide the salary figure up or down the scale: seniority level, reporting line, how many days are expected onsite, compensation bands, and the benefits structure. This is your chance to apply context to your response. Then we suggest giving a range based on those responses.

Range gives you the negotiating chip you may need later down the line when they’ve committed to hiring you. Give a narrower range only if your skillset is especially scarce and you are confident that your hiring managers are aware of it.

Our model answer to this interview question

A balanced answer should include context, awareness of the market, and flexibility.

“At this stage, I’m more focused on understanding the role and responsibilities, so I would very much like to discuss those in more detail with you. From the research I carried out before coming here, I can say a fair market range for someone at my level in this type of position is around [salary figure], but this depends on the full package including bonus and benefits. But I would be interested in knowing the range you’ve budgeted for this role, to make sure we’re aligned.”

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We hope this has helped you to answer what we know is an incredibly tricky interview question! If you’re hunting for the next job but the question about salary still leaves you feeling nervous, head over to our jobs board. We list the salary and benefits packages for all our jobs, taking the mystery out of the process.