Money Talk in an Interview

The Money Question – it always comes up in interviews …

The money question always comes up in job interviews. If you are a candidate looking at a new position, you can safely assume the person on the other side of the desk will ask some form of the money question. Your answer may be the difference between moving forward and being eliminated.

In an interview, the employer has four basic questions in mind. However they dress them up, whatever creative spin they put on them, employers really want to know four things:

Who are you?
Why are you here?
What can you do for me?
How much will it cost?

That final question can make or break the situation. If you answer it wrong, you're done. The correct answer is non - numerical. A number, whether too high or too low, is ALWAYS wrong.

The employer will invariably ask something like, "How much money do you need to consider for this position?" Or else, "What will it take for you to come to work for our company?"

If you want to be considered for the position do NOT, under any circumstances, give a numerical answer. The correct answer is something on the order of, "I'm here to discuss the position and assess my fit with your organization. I want to make sure my talents are a good match for the duties you're outlining. You're probably thinking along the same lines. I am sure, if we get to that place, we can reach an accommodation."

Why answer that way? Because it's the truth.

The demand - interest barometer tells us that, for a candidate, as demands go up, interest goes down. And as interest goes up, demands go down. If you as a candidate articulate a number too early in the process, you're drawing a line in the sand and creating an impression that you're more about reward than effort, more about price than value.

A number which is either too high or too low is wrong for several reasons.

The interviewer will eliminate you from consideration if you articulate a number that's too high. Whether they can afford the amount you say or whether you're worth that amount is immaterial. If you as the candidate create the impression that you overvalue your skills (in other words say any number above the range they've calculated), they are concerned you will never "settle" for the amount they're offering. So they will remove you from the process.

Conversely, if you say a number that's too low, you might inadvertently wind up accepting compensation less than the amount the company budgeted because that's what you said. You reduced your ability to negotiate because you have too little information.

Over the years, in coaching people on successful interviewing techniques, the money question is the one where people stumble most often. Many times people will tell me, "I just wasn't prepared for the question ... the number just popped out of my mouth." Or else they will say, "I told her $X because I think I'm worth it."

Bottom line, it doesn't matter what YOU think you're worth. The magic number is always somewhere in the range between what they want to pay and what you think you should get. This has been my experience.

When the employer asks, "How much ... ? " the right answer is, "We'll know when we get there." If they ask again, insisting on an answer, defer diplomatically a second time. Something on the order of, "I appreciate you want a number. I'm a little uncomfortable making anything which could be perceived as a demand at this early stage. I'm interested in the position and would like to learn more."

And if they ask a third time, the correct answer is, "My year to date compensation is $Z."

But why give a number that way? Simple. It's a statement of fact, not an estimate of self-esteem. You compensation is verifiable. An employer can ask for and receive verification of income. You pay taxes. Your income is a public record. In the real world, your current or most recent employer valued you at an identified level. That's the number to share.

So ... don't get caught by the money question. Role play with a friend or practice in the mirror. Be prepared for this inevitable question. Your ability to answer the money question with an non-answer can get you the job or get you more money for the job you really want.

Salary Negotiations

SALARY NEGOTIATIONS

Talking about money during the hiring process can feellike being in a contest on a nerve-wracking game show. Job candidates who prepare before the interview and adhere to some specific principles during the negotiation will eliminate much of the guesswork in the equation and come out of the interview feeling like you handled it professionally and have a better idea of what the position offers.


Before the Interview

For most hospitality management roles, the salary negotiation will take place at the last interview. That can be the 2nd or 5th interview, depending on the process with the hiring company. You can expect an offer on the spot at the end of the interview or sent to you in writing the next day should you be the chosen one. In any event, get your ducks in a row - know what you want and prioritize what's most important to you in your next role --money, more responsibility, work/life balance, a shorter commute, corporate culture-- before you begin interviewing.

Use a salary calculator, ie www.payscale.com, or locate an industry association contact that can provide you with relevant compensation information. This will also help you know that jobs you apply for pay well enough for you. Remember, however, that variables such as company size, economic conditions, and availability of qualified candidates in the market need to be factored into your information-gathering process.

Keep in mind that companies typically have salary ranges budgeted for specific roles within the organization. Exceptions aren't all that common. The only flexible items in a job offer may come down to things other than salary -- a signing bonus, moving up your review date, additional vacation time -- and could be an alternative to a higher salary.

Be prepared. You should be ready to convince the recruiter that you are worth the dollar amount at the higher end of the salary range. The easiest way to do this is to provide very specific examples of how you can add value to this organization -- just like you've done throughout your entire career.

Be upfront. When asked about your compensation requirements during the initial telephone interview, let the recruiter know where you stand. "I'm looking at opportunities in the $60-70,000 range, but can be flexible for the right opportunity." It's acceptable to ask if you're in the correct range for the position, and important to know so that both parties can make an informed decision about moving forward without wasting time. Remember, the role of the recruiter differs at each organization, so don't underestimate the influence this person has on the decision-making process.

Be respectful. If an offer is presented that is lower than what you hoped, thank the presenter. Ask if there is any flexibility in one or two of the areas that you've identified as being a priority for you. Regardless of the answer, always say you need time to consider the offer. Don't start negotiating new terms immediately.

Be firm. If there is no flexibility in the offer, you can accept it as is, or politely refuse and walk away. If the company is flexible on your terms, agree on all the new details in one conversation so that you can move forward with the next step in the process -- signing and returning the written offer letter.

Above all, be professional. Your actions during the negotiation process will be remembered by everyone involved long after you're hired, and may be helpful when it comes time to ask for a raise. As before, early preparation is the key to success in getting the salary you want.