10 Salary Interview Questions & Answers
1. What are your salary expectations?
How to Answer
In many states, it is now illegal for hiring authorities to ask about your current earnings. A question like this will give the interviewer a solid idea of what you are hoping to earn. When you change positions, you want to see an increase in wage. Most interviewees will typically aim for a 7-15% increase for each time they change jobs. This range offers room for negotiations with the new company. This percentage increase reflects economic inflation, unique skills you bring to the table from the last time you joined an organization, and an increase in responsibilities. The best way to discuss your salary expectations is to use your current earnings as an example if you are comfortable doing so. If this makes you uncomfortable, do give as many indicators as you can. Be open, and honest. Transparency is the best choice when salary based questions arise.
If you are newer to your career, or the area, and are unsure of what a fair ask may be, there are many reliable salary calculators available online.
Answer Example
"Currently, I earn a base salary of $45,000 per year, and I would like to earn slightly higher in my next position, as I have additional certifications since my last salary negotiation took place."
Admin
"As I am new to my career and this industry, I am happy to negotiate my earnings based on your typical salary for this role. From my research, I see that the average junior administrator in the Chicago area earns an annual salary in the $45K range."
Manager
"I can share with you what I am currently earning, and where I would like to be in my next position. Currently, I am earning a base salary of $78K plus an annual bonus opportunity of an additional 10%. Last year my earnings were $85K, and I'd like to earn above that in my next position, to reflect the MBA I recently acquired."
Marketing
"I am currently making $80,000 per year with two bonus opportunities based on project completion. I am looking for compensation that is aligned with the responsibilities of this role and provides an opportunity to learn new skills."
Retail
"I would like to earn slightly above where I am now. Currently, I earn $25/hour plus benefits and a 10% commission on all sales. My target income for the coming year is $65,000."
Sales
"I am negotiable with my salary expectations. However, I am not inclined to lose compensation. Compensation to me, though, is not only net pay. I take into account work hours, commute. overnight travel, health benefits, etc."
User-Submitted Answer
"My salary requirements are flexible, but for a ballpark figure, I would accept $100,000 considering the cost of living in the Bay Area."
Written by an Anonymous User
Our Professional Interview Coach
Kevin Downey Reviewed the Above Answer
I recommend putting some more thought and nuance into your answer. One one hand you express you are flexible, but on the other hand you express your number is somewhat inflexible due to cost of living. But you don't detail what makes you worthy of such an investment. You don't have to revisit your qualifications or your answers to other questions to justify your number. Instead, exemplify your worth in how you answer this question. By putting thought into your communication you can exemplify your worth.
"I am currently making $95,000 a year with my current employer, with a $2000 bonus at year’s end. We all know that cost of living in the bay area is a factor when it comes to pay, and I;m sure you hear that a lot. But hey, we’re all doing our best with the choices we make, including where we choose to live. However, understanding there is quite the shortage in the workforce right now, my current employer has offered me an increase should I choose to stay. Also, it seems fair to mention I have pretty good health insurance benefits through work. Traveling to this location would also be quite a commute, and with gas prices where they’re at, this could put a dent in my earnings as well. I imagine, due to the distance, it would cost about $150 a week for gas costs alone. That’s nearly ten thousand a year in gas. Moving closer is less of an option due to real estate prices, a common issue in the Bay Area, as we all well know.
If you don’t mind, before we hone in on a number, I have some questions. Do you offer health insurance benefits? Do you have any commuter benefits? Is there a remote work option available for this position? Do you offer yearly bonuses? What is your budgeted range that you are able to offer for this position? Are there any other perks worth mentioning?"
2. Do you feel performance should be rewarded over experience?
How to Answer
The interviewer would like to know your thoughts on being paid based on your work performance, versus being compensated solely on your years of experience. As millennial employees continue to dominate the work scene, more and more employees are requesting compensation based on delivered results. Do you feel that you should be paid based on tenure, or results? Discuss this with the interviewer and back your answer with an example, if possible.
Answer Example
"I feel that employees should be paid, and rewarded, based on their performance. A new employee will find motivation in being rewarded for performance, and it encourages a healthy competition with tenured employees."
Admin
"As a high performer myself, I know it feels great to be compensated based on my performance. It's motivating and, in my opinion, a more modern approach to keeping employees happy and engaged."
Manager
"As a manager of people myself, I feel that both performance and experience should be weighted when deciding compensation, pay increases, and promotions. You want to ensure that you compensate your highest performers appropriately but that their growth is stable and manageable in the long-term."
Marketing
"In marketing, performance is everything! For that reason, I do believe it should be the primary consideration when it comes to compensation, bonus' and raises. Tenure is vital to consider as well, and also continued education and training are excellent considerations."
Retail
"In retail, it is often tenure that is recognized, over performance. Usually, the longest standing employee gets the promotion to the manager for instance. I believe this is best due to the high turnover rate in retail. Yes, you need to prove your performance, but you also need to prove your loyalty."
Sales
"I am all about rewards for performance, being a competitive salesperson. I like the idea of gaining raises, earning more, and even promotions based on my being a go-getter. You can be a low performing employee at six months or 16 years, so I don't think that tenure should be the biggest consideration."
User-Submitted Answer
"I believe that experience should be taken into account when first starting in a position. As you transition into the job, you should be rewarded based on performance. Those who are top performers should get a larger bonus or raise."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
You offer an insightful answer that shows the hiring authority your willingness to reward the hard work of your team.
3. How do you feel about performance incentives?
How to Answer
The interviewer would like to know if you are the type of employee to be motivated by financial incentives or rewards in the workplace. If you are not incentive-driven, you can clarify for the interviewer the other ideas in which you are best motivated. Discuss any performance incentives you may have earned in the past.
Answer Example
"I feel that performance incentives are a great idea. They keep an employee motivated to do a great job and ensure that they are on top of their KPI's. The majority of people are very enthused about being rewarded for their successes, myself included."
Admin
"I cannot say that I have been offered performance incentives in the past, but that sure sounds like a nice idea. I am a high-achiever, regardless of an incentive being present but it is nice to feel appreciated."
Manager
"I think performance incentives are important for driving people to get results. For me, as a manager, I feel incentives give me some skin in the game and get my team engaged in making an impact towards the company's desired results."
Marketing
"I love performance incentives! In my current role, we have a few contents per year, primarily based on financial goals and project results. So far, I have one a free day off, and coffee from Starbucks for a week! What types of incentives do you have for fun, here at Company ABC?"
Retail
"My current company always runs a sales contest of some sort. Usually, the win is tied to sales results but sometimes to customer feedback. I think these incentives are fun! I have earned a couple of gift cards so far."
Sales
"As a sales professional, it's important to me that I have the opportunity to work towards fun and challenging incentives. Currently, my company does not offer anything like this and if I could change it, I would. It's amazing what a little bit of healthy competition can do amongst a sales team."
User-Submitted Answer
"Overall I think performance incentives are a great tool to use as most people will be motivated by this. If people know the more they produce, the more they will push to try harder."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
Good! Do you offer performance incentives in your current management role? It may be nice to offer up some information regarding the ways you incentivize your team currently.
4. How would you prefer to be compensated?
How to Answer
The interviewer would like to know what type of compensation structure makes you the most comfortable. Are you looking for a compensation structure based primarily on salary, commission, or a blend of both? Maybe additional perks are more critical for you, such as vacation time, flex days, a health spending account, a generous medical plan, pension, shares, RRSP matching, car allowance, cell phone allowance, expense account, and more! Discuss with the hiring manager how you would prefer to be compensated but be sure not to pigeonhole yourself. Freely ask the interviewer what they offer, if you are unsure.
Answer Example
"I am currently compensated primarily on a base salary with the opportunity to earn a quarterly bonus based on the company's profits. I am certainly open to hearing more about your compensation structure as I know every company is unique."
Admin
"I prefer a base salary, however, if there is a lot of overtime in this role I am certainly open to discussing options such as an hourly rate plus time and a half for any work over 44 hours. What type of compensation structure do you prefer to offer for this particular position?"
Manager
"I am currently making a strong base salary with a bonus incentive on a quarterly and annual basis. I would like to continue down that path but am open to exploring other compensation components such as commission, etc."
Marketing
"I am currently compensated on a percentage of each project I complete, along with the odd bonus. It is lucrative but sometimes hard to track. I do prefer to know what is coming to me on a monthly basis and am open to discussing a variety of compensation structures."
Retail
"I am currently paid on an hourly basis, with opportunity for overtime - which I like. Some commission earnings would be nice. Could you share with me what you offer here?"
Sales
"I prefer to be compensated on a big commission basis so that I can determine how big my paycheck is! I am a go-getter, and much prefer to know that my efforts are attached to a financial reward. I understand you have a solid commission plan in place. Could you share a few details with me?"
User-Submitted Answer
"In my current role, I am compensated by a strong base salary with the possibility of a profit-sharing bonus depending on how the division as a whole does. I have never been in a role that has been commission based but would be open to discussing this."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
It's great that you are open to a variety of compensation structures. This shows confidence in your work and performance.
5. What is your current salary?
How to Answer
It is important to note that this question may be illegal, depending on your geographical location. If you are in a place where it is unlawful for a hiring authority or recruiter to ask this question, you can politely decline by saying, 'I am aware that this question breaches my rights as a candidate in the state of XYZ.'
A potential employer will often want to base their offer on your current salary. Whenever possible, you should be transparent about your most recent earnings and be prepared to back up any salary requests in states or provinces where it is entirely legal to ask about compensation. Keep your answer simple, and to the point. It is indeed okay to ask the interviewer what they are offering in return!
Answer Example
"I am currently earning a base salary of $78,000 plus a car allowance of $900/month and health benefits. I am looking for a competitive salary in my next position."
Admin
"Currently, I earn $25/hour with many overtime opportunities. I also have a competitive benefits package and three weeks' paid vacation. Could you tell me what you are offering for this role?"
Manager
"I am currently making $100,000 per year with two bonus opportunities based on our profits. I am looking for compensation that is aligned with the role and provides an opportunity for growth. Could you share further details with me on your compensation plan?"
Marketing
"As I am a recent marketing graduate, I would like to be offered a fair salary that reflects my recent education. I am most concerned with joining an organization that will help me to grow my career in marketing. Compensation is not my primary driver."
Retail
"In my current role, I earn a blend of hourly plus commission. This year I am on track to earn $38,000. I am looking for a growth opportunity; however. What might you be offering for this position?"
Sales
"My current position is unique as I am on 100% commission; however, I have an expense account for all travel, client meetings, and more. Might you have further details on your overall compensation plan?"
6. Are you comfortable being paid on a 100% commission basis?
How to Answer
The interviewer would like to know if you are happy with being paid solely on your performance. The majority of roles that will pay 100% commission are retail and sales based positions. Whether the job pays 100% commission or not, may not be the point of this question. Assure the interviewer that you are confident in your ability to be a top performer, regardless of commissions or a comfy base salary. Are you able to work hard and be paid based on your performance alone?
Answer Example
"I can assure you that my performance is always top notch and I am comfortable being paid based on my performance. I have earned solely on commission for many years."
Retail
"Although I have never worked in a 100% commission environment, I do know that I would perform well, and hit my sales targets, even in the absence of a base salary. I am confident in my ability to be a high performer, either way."
Sales
"As a sales professional, I am motivated to drive my performance independently. Working in a 100% commission sales environment allows me to determine my compensation and manage my business and income accordingly."
User-Submitted Answer
"As someone who has never been in a position whose pay is based on a commission, I would say that I am now not in a place to take the risk with my current family situation."
Written by an Anonymous User
Our Professional Interview Coach
Kevin Downey Reviewed the Above Answer
And that is totally okay! You are likely past the point in your career where 100% commission is tempting. Your honesty will be imperative as the hiring company works on putting an offer together for you. However, you never want to close the door on any opportunity in an interview to be providing such definitives. Best to allow the entire interview to play out as well as possible while exhibiting flexibility and asking questions.
"To be honest, I’ve never worked in an environment where pay was entirely reliant on commission. I have every confidence in my ability to excel in such a situation, but providing for unexpected externalities or variables such as marketing trends, competitors, and other components I might not be fully aware of, it sounds like such a pay structure has the potential of being unstable or unpredictable, despite how one may excel at their job. I’d definitely be open to learning more about how such a pay structure works in practice. I took my time researching the position and the company, and I didn’t see anywhere online that this was the expectation of the role. How does this come into play with the requirements for this position, and what does that look like?"
7. Do you feel that you are currently paid what you are worth?
How to Answer
The interviewer would like to know if you feel undervalued in your current role. Many employees will look for new work if they think that they are underpaid and underappreciated. Of course, this potential new employer wants to ensure that they will make you a competitive offer that will entice you to join their organization, and stay there. Talk to the interviewer about your current compensation and whether or not you feel it is fair. Be sure to have researched your answer to back you up, versus throwing out a random number and hoping it will stick.
If you think you receive what you are worth: 'I feel that my current employer pays me fairly; however, I would like to see an increase in pay with an increase in responsibilities."
If you do not feel you are currently paid what you are worth: "I know that I am underpaid compared to my industry colleagues. My company is small, and they do what they can, but this is part of why I am seeking a new position."
Answer Example
"
If you do not feel you are currently paid what you are worth: "
Admin
"I have recently asked for a raise since I have been with my current office for three years without an increase. My present manager is currently reviewing my request."
Manager
"Initially, I was paid my worth, when I first accepted my role. However, since then, my team has grown exponentially, and I have not received a raise. I have researched the scope of my role and believe that if I were to start in my same role today, I could ask for approximately $20K/year more than I currently receive."
Marketing
"I am currently with a start-up agency, so I am certain that I am not paid my worth in base salary, but I do receive a great number of perks including free lunches, a couple of trips per year, an option to work from home, and a health spending account. The perks are great, but I do know that someone with my skill set is worth more, speaking solely in base pay."
Retail
"I believe that I am ready for a store manager role which would bump up my pay quite significantly. I am paid fine for my current function but am craving an increase in responsibilities."
Sales
"I receive what I am worth because I am paid heavily on commission. The harder I hustle, the more money I make. This payment agreement keeps it pretty cut and dry for me if I happen not to like my paycheck!"
User-Submitted Answer
"I believe when I first started in my role, I was paid correctly. Over time I took over all decision making for my department from my manager to the point where I no longer reported to him and reported directly to our departments' director. When this happened, there was no compensation increase, and I feel there should have been."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
This would have been a very fair ask. As a side note, be sure that your compensation request in your next opportunity reflects the jump that you feel you should have been given when this transition took place.
8. Is compensation the most important factor for you when taking a new job?
How to Answer
The interviewer would like to know how much emphasis you put on pay when considering a new position. In addition to compensation, there are many other factors to a fulfilling career. These other factors may include:
- work/life balance
- amount of travel involved in the role
- overall medical and health benefits
- additional perks such as car allowance, cell allowance, spending account
- the industry you will be working in
- amount of vacation time
- the type of clients you would be working with
- the location of the company
- career growth opportunity
- the size of your new team
- the company's reputation
- overall workplace culture.
Talk to the interviewer about other factors that are important to you when considering a new job. If you are not sure on details for this role, you can ask!
Answer Example
"Salary is important to me because I know that I am skilled and well educated. With that said, I do look at the full picture which includes factors such as benefits and the amount of paid vacation time."
Admin
"Several factors are important to me when taking a job. Compensation is a driving component but so is the company mission, culture, benefits, and location. I am looking to have an easier commute than I currently experience."
Manager
"For me, as a manager, the most important factor in accepting a new role is the health of the company, and it's employees. I am looking to take on a team that is positive. I like to work with enthusiastic people that I can motivate. With that said, I am also looking for a competitive financial offer."
Marketing
"At this point in my career, I am looking to join a marketing department that will give me the opportunity to work on more significant projects and with more robust tech and applications. Compensation is a driver, of course, but not the only one."
Retail
"I am earning my way through University right now, so the two most important factors to me are flexibility in my schedule, and the opportunity to earn a fair wage. I am available evenings and weekends but come next semester; I will be available during most afternoons."
Sales
"I am seeking first a product and company that I am proud to stand behind. Compensation and commissions will increase when I am happy with my job so I would say that culture and company reputation is most important to me."
User-Submitted Answer
"No, for me getting into a company that will have opportunities for me to grow and provide a better home to work-life balance is just as important. I am currently driving an hour one way to work, which is causing me to be away from my family more then I would like to be."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
That is a long commute, and completely understandable that you would be seeking change. Your answer is specific and will be helpful to the hiring authority.
9. What is the most amount of money you have ever earned? Why did you leave that position?
How to Answer
The interviewer is asking about your most lucrative position because they want to gauge if you are going to be happy with the amount of money earned in this role. Sometimes we will go backward in our career as far as compensation is concerned, and that is okay, but a considerable compensation gap will be a red flag to an interviewer. A decline in salary could be due to an economic crisis, layoffs, self-employment, or for geographical reasons. Talk to the interviewer about your most significant earnings and reinforce your current compensation ask.
*It is important to note that this question may be illegal, depending on your geographical location.
Answer Example
"With Company ABC, I earned approximately $95K/year. Yes, I was earning a touch more than was is being offered for this role, but I chose to leave because the workweek was over 60 hours and I had no family life. The sacrifice simply wasn't worth the extra income."
Admin
"I earned a larger amount of money when I worked as a virtual assistant, but it was a freelance position, which typically pays higher. I did have to make my tax deductions and had the expense of working from home, and paying my office-related bills such as internet and long-distance calling."
Manager
"The most amount of money I have earned in my work history would be the position in which I currently work. I am not only driven by base salary; however. I am seeking a role with additional perks such as less overnight travel, better health benefits, and more vacation time. I am interested in entertaining more creative compensation packages."
Marketing
"A few years ago, I left a lucrative marketing position, earning low six-figures, to join a start-up company. I was very passionate about the product that this new company was launching and agreed to take a smaller salary in exchange for shares. It worked out well and was worth the leap of faith and I gained some new skills in the process. It was worth taking a bit of a pay cut for."
Retail
"I do not earn as much now, in retail, as I did working as a server when I was in my first year of University. With that said, the tips were great but the hours were not conducive to my study schedule. I am fine with taking a smaller paycheck and having the energy to study and have a personal life at the same time."
Sales
"My current position offers a higher base salary; however, the overall commission structure is not as generous as your is. When I make a strong comparison, I can see that with some hard work, and a bit of time, the role you are offering will end up being more lucrative."
User-Submitted Answer
"My current salary is the most money I have earned. While I believe I work for an amazing company, I also feel that I have no more room to advance. This is a large part of why I am looking for a new opportunity."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
Well said. You sound thankful for the opportunity while also ready to let go and grow.
10. Will you be willing to take a salary cut?
How to Answer
Hopefully, this question is being asked of you upfront, and not during your second or third interview. Depending on the interview stage, your answer may vary.
Salary negotiation is real and sometimes an intimidating topic for interviewees, primarily if you have not yet established a sense of trust and rapport with the interviewer. Are you interviewing for a position that you know pays less than what you currently earn? Maybe the selling factor is that there will be less time to commute, weekends off and more time with your family, or less responsibility and decreased stress. Sometimes these reasons mean more to you than the bottom line.
Answer Example
"Currently I'm making approximately $20K more per year than you are offering for this role. I would be open to negotiating salary with you; however, at this point, the gap remains too significant. I am open to creative compensation packages such as added vacation time, better health benefits, or a car allowance."
Admin
"For the right opportunity, and better hours, I am willing to discuss a few options; however, my overall compensation including benefits and perks need to make sense to my career goals before I would make a move."
Manager
"I understand my base salary is $15k higher than what you are offering, so I am willing to look into creative solutions if the overall earning potential is there. That is, I'd love to hear what kind of equity you can offer, as well as a guaranteed year-end bonus. I do not doubt that I'll exceed metric expectations, and blow you away, and look forward to figuring out a compensation structure that would be beneficial to both of us."
Marketing
"I'm motivated to come to your company and exceed expectations. That said, I need to ensure that with the added responsibility of leading a junior marketing team, that my pay commensurates with these new tasks and effort. I would be open to learning more about your compensation plan and how we can make it a win-win for both parties."
Retail
"From what I understand, the hourly wage offered here is less than my current position, but your commission percentage is higher than I currently earn. I would like to learn more about your metrics such as average purchase value and items per purchase before I agree to any cut in my hourly wage."
Sales
"I could only take a reduction in my base pay if my overall spending is lower in this new role. For instance, if you offer a counterbalance by way of benefit premiums, gas costs, mileage, cell phone allowance, and more, then I am more than willing to discuss some options with you."
User-Submitted Answer
"I would be willing to take a cut in salary if needed, as this position will allow for a better home and work balance. I would love to know what solutions you have to get me as close to my current salary through signing or performance bonuses, as I know I will be able to meet and exceed your expectations."
Written by an Anonymous User
Our Professional Interview Coach
Rachelle Enns Reviewed the Above Answer
Nicely positioned. You are showing a willingness to meet in the middle while also challenging the hiring company to make their best offer upfront.