How much do you expect to be paid?  It's a question that can bring even the most stalwart jobseeker to his/her knees.  Price too high and knock yourself out of the running.  Lowball it and kick yourself for leaving money on the table. 

The trick is to know the right range for each opportunity and leave room to make everybody happy.  Maybe achieving world peace would be easier.  No, not really.  There are ways to prepare properly for this question and they really aren't all that hard.  Be Prepared

Sooner or later, the question of compensation will come up.  Your objective should be to make it as "later" as possible.  The reason for staving off the inevitable is to learn as much as possible about the prospective job, company, competition, etc. to do a better job of defining the right range.  Jump in too early and your chances of being off the mark increase significantly.

Rule #1: Always do your homework.

Every job search starts with re-search.  It's in your own best interests to research salary levels for your target job(s).  Don't have a job target?  Go back to square one and start over.  Once you've identified a couple, start digging for compensation ranges for companies that hire them. 

Start out with www.Salary.com or a similar site, then progress to a Google or Dogpile search.  This will give you a very rough cut on a range.  Then you can move on to the next level of specificity - salaries vary by region, size of company, industry sector, experience, education, and other factors too.  Look at related job postings across company websites and local/national job boards for salary levels.  Keep a list for your own reference. 

Talk to peers and friends about salary levels.  It's also okay to ask networking contacts about general compensation trends.  Just be sure to avoid asking people about what they personally make - that's more objectionable than asking about their sex life.

Rule #2: Never volunteer information about compensation; always wait to be asked.

It's all right to ask about compensation - eventually - but volunteering information can shift the balance of negotiating power to the prospective employer.  The guy/gal across the table may not seem to react to what you've said, but you can bet that it will impact what they think about you as a candidate, because salary is an analog for worth.  You've offered a short-cut to a go/no go decision, probably before the interviewer was ready to make that call.  Keep quiet and you get the opportunity to sell yourself on your real merits.

Rule #3: When asked about salary, punt.

Yes, it's a good thing to be straightforward and honest.  You can do this and still avoid giving a definitive answer, but it depends on where you are in the search process. If a potential employer asks for a salary range, you should reply by saying that your target is negotiable, and it depends upon the opportunity. 

But if a job posting mandates that you supply a salary history in order to be considered, you have to say something.  It's best to calculate the total value of your compensation, including salary, bonus, benefits, company car, etc. into a total and list that figure as a generality, like, "My total compensation package was in the mid- $70 range", rather than, my current annual salary is $62,497.88."

Sometimes, when you arrive for an interview, you're given an employment application to fill out.  (BTW, this is a common trick in the process; people who don't fill them out and say, "see resume" are sometimes thrown out for failure to follow instructions.) I conveniently always "forget" to put anything in a form that asks about comp.  If someone insists, just put down "negotiable."

You may not get away with this either, so the best way to respond to the salary question is with a question of your own: "What does typically pay incumbents in this position?"  Maybe you'll get lucky and you'll get a straight answer.  But don't bet on it.  It's likely that you'll go back and forth a few times before some indication is given.  Which brings us to the last rule …

Rule #4: When push comes to shove, you need to be ready with a number.

For most opportunities, salary discussions shouldn't come up during the first interview.  If the interviewer does raise the issue, try to defer by saying that you really want to know more about the opportunity and have the company know more about you before you talk money.  But if you're asked back for a second meeting, you need have a number firmly in mind before you walk in the door. 

Which means that you've done more research since the first interview and thought long and hard about what you're going to say.  It's even better to role play this conversation with someone else beforehand, so you can get comfortable stating your position and anticipating what you might reply if there's some resistance. 

Remember, this is one of the key parts of the negotiation and what you agree to will dictate your future with the organization.  You want to seem comfortable and confident when you put the figure out on the table.  And you want to be convincing when you list all the reasons why you're worth it.  Practice makes perfect.

Second Thoughts

It sends a signal that you're indecisive at best and unprepared at worst, both of which will color the new company's perception of you going forward.  And that's not a good way to start out.  The only way to recover is to try for a three- or six- month review with the potential to receive an increase based on outstanding performance. 

Questions about job search or career issues?  Write to me at jamie@jobcircle.com.

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Jamie Fabian spent more than 15 years as a human resources executive before changing careers to become a senior project manager for a growing IT consulting company.  Now in management consulting for a large Pharma company, Jamie would like to be seen as a hybrid of Tom Peters, Tom Jackson, and Tom Wolfe, but spends too much time working, driving carpool and watching mindless TV to write more than this column.  You can contact Jamie with questions and comments at jamie@jobcircle.com.