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Negotiating a salary can be one of the most critical junctures in the job application and interview processes. To expedite this, employers may require you to state an expected salary range in your cover letter.
Including salary requirements in your cover letter is a double-edged sword and its value should not be underestimated.
On the one hand, employers can see if your expected salary is reflective of your experience and skills. If it is, great! If not, the chances of you moving through to the next step of the interview process may be in jeopardy.
On the other hand, the confident addition of an expected salary range in your cover letter can highlight the experience, knowledge, and added value you bring to the company, and can show employers that you know your abilities and your worth.
Are you struggling to include your salary expectations in your cover letter? Don’t worry! We will break down the difficult topic of financial compensation and provide a comprehensive step-by-step guide to prudently address salary expectations in your cover letter.
As a rule of thumb, it is generally not recommended to include an expected salary range in your cover letter unless explicitly stated by the employer in the job listing.
The reason is simple, it is because you might risk mentioning a salary expectation that either exceeds the employer’s budget or is so low that it gives bad employers a chance to underpay you.
Employers may reject you without further consideration if your expected salary range is too high. If your proposed salary is too low, you may still be accepted for the job but stand the chance of missing out on a potentially higher salary that the employer could have been prepared to offer.
Not mentioning your expected salary in your cover letter opens the possibility to negotiate once you and your employer get the chance to know each other through the process of recruitment. Therefore, only include your expected salary in your cover letter when it is explicitly requested in the job listing.
Let’s examine the steps to properly include your salary expectations in your cover letter.
When addressing a topic as critical as your salary expectations, know what you are getting yourself into. Prior to writing your cover letter, conduct thorough preliminary research to determine the industry salary standards in the field and position you are applying for. This includes the standard required qualifications for the position you are applying to as well as the financial compensation associated with them.
Understanding these essential features when addressing your salary expectations will aid you in determining the most appropriate salary expectations in relation to your qualifications.
Your educational background can highly influence the expected salary range you include in your cover letter. A master’s or doctorate degree can be leveraged for a much higher salary than one with a bachelor’s degree!
To illustrate the difference that higher education can make in a cover letter, take the expected salary of a Data Analyst as an example. With a bachelor’s degree, a Data Analyst’s salary can range between $45,000-$77,000, whereas a master’s degree stands to earn upwards of $90,000.
As always, experience is gold! Having relevant work experience adds credibility to your qualifications and is a great way to boost the salary range you include in your cover letter.
Similarly to your previous work experience, the financial compensation of previous jobs can be used to leverage a higher salary in your cover letter.
For example, if you were previously paid $65,000 a year, you can leverage this amount and your work experience to get a higher salary. Consider this heavily when determining the expected salary range you will include in your cover letter.
Understanding the demand for the position you are applying for is an important step in determining the salary expectation range in your cover letter.
Jobs that are in high demand will likely reflect a higher salary and give you more flexibility in your salary range and further negotiation. Similarly, jobs that are in low demand are less negotiable and the range will reflect this accordingly.
When considering the salary range you include in your cover letter, also consider the job title that accompanies the position you are applying for. Your current job title can be used as leverage to secure a higher salary.
Consider your hard skills and technical knowledge when determining the salary range you will include in your cover letter. Depending on the industry, you may be required to possess technical knowledge or a specific technical skill set that will allow you to effectively carry out the job you are applying for.
For example, if you are applying for a Business Intelligence Analyst position, you will be required to understand business-related jargon and be technically qualified to fulfill the obligations of the position. Possessing the required knowledge will increase your value and is reflected in the salary range you can propose in your cover letter.
Like hard skills, knowing what your soft skills are will allow you to propose a salary range that is reflective of your skill set. In your cover letter, your expected salary range should reflect the soft skills you bring. These can include languages you are fluent in, and your ability to think critically and solve problems, amongst others.
The country and city you are applying to work in will completely change the financial compensation you will be able to ask for. Conduct further research to determine the standards of the city you are applying to work in prior to including salary expectations in your cover letter!
When including your expected salary in your cover letter, it is best to indicate your expectations through a range. This gives you and your employers the space to proactively reach the best financial compensation package for both of you.
Examples of how to include your salary expectations in your cover letter:
In terms of how to indicate your salary expectations in your cover letter, remember to be open to negotiation. Financial compensation is almost always negotiated at some point in the application process, so avoid coming across as unwilling to do so from the get-go.
Examples of how to show your willingness to negotiate when providing salary expectations in your cover letter:
When it comes to negotiating a salary range in your cover letter, ensure that you remain flexible. Including a sentence in your cover letter that relates your flexibility to your suggested salary range prevents employers from dismissing your application if the suggested range is too high.
Flexibility can be displayed in many ways.
3 ways ton show your flexibility in your salary expectations in your cover letter:
The placement of the salary range expectations in your cover letter can have a large impact on how it is received by the employer.
For instance, if you include your salary expectations in the introductory paragraph of your cover letter, you may come across as demanding or selfish.
It is generally a good idea to include your salary expectations after you describe the qualifications, experience, and skills you bring to the table. That means, it is best to mention your salary expectations in the last part of your cover letter before the closing. This allows the employer to first evaluate your qualifications before deciding whether or not you are worth the money you are asking for.
Here’s an example of how to include salary expectations in a cover letter.
Peter Noor
Human Resource Manager
1185 Whiteman Street
Maple Shade, NJ 08052
609-970-8502
[email protected]
Laura Martinez
Hiring Manager
Dyno Games
621 Mattson Street
Portland, OR 97230
Dear Ms. Martinez,
I am writing to express my interest in the Human Resource Director position at Dyno Games as the position aligns closely with my professional and personal developmental goals. As an experienced professional with fifteen years in HR, I believe that my experience and qualifications will bring added value to your company and drive your continued success.
Throughout my career, my results-driven work ethic has aided greatly in my professional development. I believe that my professional experience, bilingual fluency in English and Spanish, and my strong interpersonal communication and organizational skills will contribute greatly to the smooth and efficient operation of your company.
As per your request, and based on the current industry standards in Portland, my qualifications, work experience, and skill set, my salary requirement is within the $55,000 and $65,000 range. This figure is flexible and negotiable depending on your current budget and any additional information that can be provided regarding the scope of a compensation package and further professional development opportunities.
Please take a moment to review my resume and recommendations. I look forward to meeting face-to-face to discuss the full scope of the HR Director position. Thank you for your evaluation and anticipate your forthcoming response.
Sincerely,
Peter Noor
Nowadays, many job applications are submitted via email. Here is an email template of a cover letter including salary expectations.
Dear [Mr.Ms.Mrs.Mx.][Hiring manager’s name]:
I am writing to express my interest in the [job title] at [company name]. I am experienced in [skills] and I am certain that my qualifications and experience will bring immediate value to your company.
In my current position as a [current job title], my [1-2 personal traits] are evidenced by my top accomplishments:
With regards to the requested salary requirements, I would like to suggest a salary ranging between [salary range]. This figure, while flexible, is representative of my professional qualifications, skill set, as well as current industry standards within the [city/town name] area. I am open to negotiating the final figure with due consideration given to your company budget, the overall compensation package, and any other professional benefits that accompany this position.
Thank you for your consideration. I look forward to your forthcoming response.
[Complimentary close],
[Signature]
[Your full name]
🔑 Key Takeaways
And that’s it! Remember these tips when figuring out how to include salary expectations in your cover letter:
One of the most intimidating tasks in the job application process is drafting the cover letter, and including your salary expectations may seem like being too direct. Yet, if done correctly, including salary expectations in your cover letter can allow you to leverage your skills and qualifications to land you the position you want!
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--- Originally written by Alexander Coye ---
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