Ex-Google RECRUITER EXPLAINS: How to Answer 'What Are Your Salary Expectations?' AND How Comp Works

Summary

This video script offers guidance on handling the common interview question about salary expectations. It explains that recruiters aim to assess alignment with the company's pay band and set expectations for offer discussions. The script delves into the components of compensation, including fixed and variable pay, and the importance of benefits. It advises job seekers to research market rates and suggests strategies for responding to salary inquiries, emphasizing the importance of not revealing too much too soon and the value of redirecting the conversation to gather more information.

Takeaways

• 💼 When a recruiter asks about salary expectations, it's not a trick question but a way to assess alignment with the company's budget and payband.
• 📈 Companies set a budget for salaries at the beginning of the year through a process involving finance and headcount planning.
• 🔢 The payband for each job level has a minimum and maximum, and companies aim to keep compensation within this range for fairness.
• 🤝 Understanding the different components of compensation, such as fixed compensation, bonuses, commissions, and equity, can help in negotiating better offers.
• 🏥 Benefits packages, including healthcare, can impact take-home pay and should be considered when evaluating an offer.
• 🧐 Researching salary expectations through websites like Glassdoor, Salary.com, and the Blind app can provide useful but not definitive data.
• 🗣️ Redirecting the conversation when asked about salary expectations can help gather more information about the company's compensation structure.
• 💬 Offering a salary range based on research and the job requirements can be a strategic way to communicate your expectations without being too specific.
• 💼 When providing a salary range, consider your experience, skills, location, and the market rate for the position.
• 🤝 Be open to discussing the entire compensation package, including benefits and growth opportunities, rather than just focusing on base salary.
• 📝 Remember that salary expectations are an opportunity to communicate what you value and expect from a potential employer.

Q & A

Why do recruiters ask about salary expectations during a job interview?

Recruiters ask about salary expectations to assess if the candidate's expectations align with the company's payband and to set the candidate's expectations for the offer conversation.

How do companies determine their budget for hiring new employees?

Companies determine their hiring budget at the beginning of the year by coordinating with finance, looking at headcount, current salaries, and the amount they can set aside for new and internal promotions.

What is meant by 'headcount planning' in the context of hiring?

Headcount planning is the process where departments report their staffing needs to finance, who then allocate the budget for hiring based on the company's overall budget.

Can you explain the concept of 'leveling' in the context of company compensation structures?

Leveling refers to the hierarchical structure within a company, with each level having a corresponding payband or salary range. It's similar to the rungs of a ladder, with each rung representing a different level of seniority and associated pay.

What is a 'Pay Band' and why is it significant in compensation discussions?

A Pay Band is the range of compensation for a specific level within a company, stretching between a minimum and a maximum. It's significant because companies aim to keep compensation within this band to maintain fairness and align with their pay philosophy.

What are the two main parts of a compensation package as mentioned in the script?

The two main parts of a compensation package are fixed compensation, which includes salary or base pay, and variable compensation, which can include bonuses, commissions, and equity.

Why is it important to understand the variable compensation portion of a job offer?

Understanding variable compensation is important because it can significantly boost one's pay based on performance, achievements, or company success, and it motivates employees to meet or exceed expectations.

What is the role of 'Equity' in an employee's compensation package?

Equity, such as stock options or restricted stock units, aligns an employee's interests with the company's long-term success. It can grow in value over time, potentially providing substantial financial benefits if the company does well.

How can benefits packages impact an employee's overall compensation?

Benefits packages can impact overall compensation by reducing out-of-pocket expenses for things like healthcare, which effectively increases the employee's take-home pay.

What are some strategies for responding to a recruiter's question about salary expectations?

Strategies include redirecting the conversation to learn more about the company's payband, offering a salary range based on research and qualifications, and expressing openness to discuss the entire compensation package, including benefits and growth opportunities.

What websites or resources are suggested in the script for researching salary expectations?

The script suggests websites like Glassdoor, Salary.com, Level.fyi, and the Blind app as resources for researching salary expectations, with a preference for the Blind app due to its anonymous nature.