When applying for a job, you may be required to include salary requirements in your cover letter.
As a rule, it is not wise and is even considered a bad practice to include your salary expectations in a cover letter.
It is recommended to avoid indicating salary expectations in cover letters unless you have been explicitly asked to provide them.
This is because you will not have an idea about the job description and salary ranges until you receive the job offer and/or the interviewer raises this issue. Revealing salary expectations prematurely could lead to an ineffective decision during the preliminary stages.
You want to be in the best position of power, discussing/negotiating your expected salary only after the company decides to hire you and provides you with a job offer.
How to Address Salary Expectations
My first suggestion is that if the company doesn’t ask for it, avoid revealing your salary expectations in your cover letter. You should first secure the position and get an offer before discussing salary further. Therefore, include your salary requirements (i.e. salary expectations) only when you have been asked for this information.
However, there might be cases when a recruiter/employer asks for your expectations after seeing your resume.
It is their first selection criteria, and there is no escaping it. In fact, it is always a no-win situation for you – you must quote a figure which is either too high or too low. What should you do if they do ask?
A Guide to Including Salary Expectations in Your Cover Letter
This section discusses how to navigate salary expectations in your cover letter and provides a sample letter for the same.
It also deals with the elements that comprise the salary range for a job opening.
Why do they ask about your salary requirements?
The dilemma starts with the fact that most (if not all) job hiring ads do not contain employer salary limits.
The employer’s position:
Employers require this information to understand your salary expectations, which is their first selection criteria. In fact, it appears that you may find yourself in three no-win situations:
- If they find that you are looking for a higher salary, they will not waste any further time since they will not be able to pay you that amount.
- They might have the idea that you will not be happy working for a lower salary.
- On the other hand, if your expectations are lower, you might land yourself a lower salary package.
That is why your salary requirements in the cover letter have to demonstrate your desire to keep the door open.
Your position:
- You can state that your salary package is negotiable based on the overall compensation offered, including benefits.
- You may provide a base salary (from-to) after researching the current market, like $50,000 – $75,000 annually, with the lower number representing your original salary expectation.
Both options put you in a good position since they offer you flexibility during the salary negotiation stage.
What to Do When Asked for Salary Requirements in a Cover Letter
Conduct Research!
Before writing the cover letter that includes your salary requirement, you must research the average salaries of the position based on several variants.
Make sure you take a good look at the following factors:
1. Salary survey and salary range
You need to spend time reading current industry reviews (salary surveys) and the salary ranges for people having a similar career status to the one you are applying for.
2. The company field
It is also necessary to look into the field of the hiring company since their salaries mostly depend on the industry that they are engaged in.
3. Job location
The cost of living also forms an important part of determining your salary since it differs from location to location.
For example, a financial advisor in New York is paid higher than one from Arizona since these two places have a cost-of-living gap. Hence job location needs to be kept in mind during your research.
4. Supply vs. Demand
This is one of the most important factors in determining salary range.
If an industry is saturated with a lot of people who have the same qualifications and skill set, employers gain the upper hand, resulting in a lower salary being offered than would have been the case if people were in short supply for the required position.
On the other hand, if the demand and supply are both high, as is the case with software programmers, companies may offer high salary packages to attract these professionals and be the first to hire them.
5. Compensation including benefits
Some professions, like marketing and sales, have compensation structures that include benefits.
You need to find out not only the salary range but also the total compensation structure that comprises all benefits for a given position. This is called the total cost to company (CTC).
6. Comparing apples to apples
Some professions require more competencies than others, and the hiring company is going to consider your overall skills, experience, and qualifications when deciding your pay.
Therefore, these points should be highlighted in your cover letter or resume.
How to Handle the Salary Question in Your Cover Letter
The Dos and Don’ts of Salary Requirements –
There are two options for stating your salary expectations:
- Give a wide range of numbers to have the best chance of matching the company budget.
- Give a top range, aiming high but ready to negotiate.
You may state “willing to negotiate salary” or indicate “flexible where salary is concerned, considering it only one important factor of the overall job aspects.”
Sample cover letter with salary requirements
1st Sample
Dear [Hiring Manager’s Name],
Thank you for considering me for the [Job Title] position at [Company Name]. I am excited about the opportunity to join your team and contribute my skills to the company’s success.
As requested, my salary expectations are in the range of [Salary Range]. I arrived at this number after researching the current market trends and taking into consideration my experience and qualifications. However, I am open to discussing this further during the interview process and considering the overall compensation package, including benefits.
I possess [X years of experience] in [relevant skill/industry] and have demonstrated the ability to [mention one or two key accomplishments or skills that align with the job description]. I am confident that my skills and experience make me a strong fit for this position, and I am eager to contribute to the success of the team.
Thank you for considering my application. I look forward to the opportunity to discuss my candidacy further.
Sincerely,
[Your Name]
2nd Example
Dear [Employer’s Name],
I am writing to apply for the [Position Name] at [Company Name], as advertised on [where you found the job advertisement]. I have over [Number of Years] years of experience in [Relevant Experience], and I am confident that my skills and expertise make me the perfect fit for this role.
As requested, my expected salary range is [Your Expected Salary Range]. However, I am willing to negotiate based on the overall compensation offered, including benefits.
I am excited about the opportunity to join your team at [Company Name] and to contribute my skills and expertise to [Specific Project or Goal]. Thank you for considering my application. Please find my resume attached for your review.
Sincerely,
[Your Name]
3rd Sample Top of Form
[Insert Date] [Insert Company Name and Address]
Dear [Hiring Manager’s Name],
I am excited to submit my application for the [Position] at [Company Name]. After researching the position and your company, I am convinced that this is an excellent match for my qualifications, expertise, and interests.
In terms of salary, I am flexible and willing to negotiate based on the overall compensation offered, including benefits. However, as a benchmark, my salary expectations for this position are between [Insert Range], with the lower number representing my original salary expectation.
Thank you for considering my application. I am looking forward to the opportunity to discuss my candidacy further.
Sincerely,
[Your Name]
4th Sample
As regards your request, I have researched the market based on the job description and have come up with a salary range of $50,000 – $70,000 without any benefits or supplements added to the scale.
This is negotiable depending on the total compensation, career growth opportunities and other factors.
Thank you for your time and consideration.
Sincerely,
5th Sample
As for the salary requirements, my expectations are as follows – $X.
However, I trust you will consider this figure following a job interview as I am flexible to negotiate all aspects of the job offer.