How to Include Your Desired Salary In Your Job Application

Lena Görmann

Jan 05, 2024

Disclaimer: The info in this article is specific to the German job market. Please note that common practice might be different in other countries.

You are looking for a job and have found a job advertisement that perfectly matches your qualifications and interests. Now you are faced with the challenge of stating your salary expectations in your application. But how do you find out which salary expectations are realistic and what is the best way to formulate them?

In this text, you will find out how to state your salary expectations correctly in your application, how to determine a realistic salary and how to address the topic of salary in the interview. Other questions about salary and applications are also answered.

Why should I give a salary expectation at all?

As an applicant, you are often expected to state your salary expectations, as this is an important part of the application process. A salary expectation allows the employer to assess whether the salary you are expecting is in line with the company's budget. It saves time and effort for both parties if it is clear from the outset whether your salary expectations and those of the company are compatible.

A salary expectation can also serve as a basis for salary negotiations and allow you to communicate your own expectations and value. It is important to state a realistic salary expectation based on the current market and your own experience.

Calculate your salary expectations: What is a reasonable salary?

You are probably wondering how to arrive at a realistic salary expectation. In order to avoid deviating significantly from the company's offer, you can consult various sources and experiences.

If you have already worked in the field you are applying for, you already know your previous salary and may also know what your colleagues earn. This is a good starting point. However, since the salary depends on many factors, you should keep in mind how your previous employer and your desired employer differ. For example, if you previously worked in the marketing department of a non-profit organization and would now like to take up a similar position at a company in the private sector, you can assume that the average salary there will be higher than your previous one. In general, you can expect a salary increase of around 10 percent when changing jobs.

In addition to your own experience, online sources such as information from industry associations or salary comparison portals can be helpful. In the latter, you can usually specify various factors such as your professional experience, your highest educational qualification and the size of the company. Based on this information, a salary range is then calculated that is common on the market. Depending on how you assess the company and your own qualifications, you can place yourself in the middle, lower or upper end of this salary range.

How should I formulate my salary expectations?

When formulating your salary expectations, it is important to be precise and realistic. You can basically state your salary expectations in two different ways: as a specific amount or as a salary range:

A specific salary expectation can be stated in the form of a fixed amount. However, you should bear in mind that this amount should not be set too high in order to avoid unrealistic expectations.
Alternatively, you can state a salary range that clearly indicates the scope for salary negotiations. Such a range can, for example, include the desired minimum salary and the desired maximum salary. This signals to the employer that you are open to negotiations and willing to make compromises.

The salary expectation should be stated briefly and concisely in one sentence and formulated in a professional tone. It is customary to include a brief justification for your desired salary. Below you will find some examples of specific formulations.

Examples of salary range formulations:

With regard to my professional experience in area X, I am aiming for a salary of 45,000 euros gross per year.
Due to my extensive qualifications, I consider a salary of between 55,000 and 65,000 euros to be appropriate.
My salary expectations are 48,000 euros gross per year.
With regard to my previous professional experience, I am looking for an annual salary of 70,000 euros.

Gross or net salary expectations?

When stating your salary expectations, always state the gross salary. The gross salary includes both the salary amount and the taxes and social security contributions due on it. As taxes and social security contributions depend on your private circumstances, it is of no interest to the company how much of your gross salary you have left over at the end. By stating your gross salary, the employer can better estimate the costs they will incur.

The gross salary that you state as your target salary always includes all salary components, i.e. any bonus payments, vacation and Christmas bonuses, capital-forming benefits, etc.

The salary expectation is also always stated as an annual salary. Stating a monthly salary can quickly come across as unprofessional, so you should refrain from doing so.

Where do I write my desired salary in the application?

Your salary expectations should always be included in the cover letter, not in your CV. However, the focus of your cover letter should be on what qualifies you for the advertised position and why you are the right person for the job. Therefore, always state your desired salary at the end of the cover letter, usually as the last sentence before the farewell phrase. The end of the cover letter can then look like this, for example:

With regard to my professional experience in customer acquisition, I am aiming for a salary of 45,000 euros gross per year. I look forward to discussing further details with you in a personal interview.

Yours sincerely

Julia Sommer

What if the job advertisement does not ask for a salary?

You should only include your desired salary in the cover letter if it is requested in the job advertisement. If it is not explicitly asked for, you can bring up your expectations in the interview instead. It may seem nonsensical to be invited to an interview only to find out that the employer only wants to pay 70% of your desired salary. However, there is almost always room for negotiation and if you give an unsolicited salary expectation that the company immediately considers unrealistic, your application may be rejected even before invitations to interviews are sent out.

How do I bring up the salary in the interview?

When it comes to the question of how to bring up salary in the interview, it is important to wait for an appropriate time. Usually, the topic is brought up by the employer themselves, either during the interview or at the end. In some cases, however, recruiters also avoid bringing up the topic on their own to test which applicants are confident and bring up the topic of salary themselves. This is where you can shine if you take courage and ask the question about salary.

There are many different ways to bring up the topic. A suitable time would be, for example, when the other person asks if you have any questions. It's best to ask a more substantive question first, such as specifying the tasks or asking about the development or training opportunities for the position. You can then ask about the salary. The following formulations are suitable for this:

What is the salary range for the position?
I would also like to know what the target salary is.
I would like to know more about the general conditions, i.e. the salary and any additional benefits.

After your interviewer has stated the salary range, you can state your own expectations and refer to your qualifications and achievements in previous jobs. If the salary quoted by the company is too low for your expectations, you can also refer to your previous salary or comparative salaries at other companies in the industry. However, it is also a good idea to remain flexible and consider other aspects such as development opportunities or additional benefits. The company may not be able to pay your desired salary, but may offer you such extensive benefits that the salary no longer carries so much weight.

As soon as both sides have stated and justified their ideas, the topic is closed for the time being. It is important here that no final decision is ever made in the first interview. It is now up to the company to decide whether they are prepared to offer you a higher salary. The topic can then be taken up again in a second interview or in a subsequent telephone call.

What if I offer too much salary? What mistakes should I avoid?

If you overstate your salary, this can lead to various problems. Firstly, it can make a negative impression on the potential employer as they may think you are overqualified, overstate your qualifications or simply haven't done any research into what salary might be appropriate for the job. This makes you look unprepared or, in the worst case, unsympathetic or unprofessional.

All of this could lead to you being excluded from the selection process. Secondly, you could have problems negotiating your actual salary as the employer already has a different figure in mind.

Another mistake could be not mentioning the salary at all or reacting unprepared or unsure when asked about your expectations. This also reflects badly on you.

It is therefore very important that you prepare thoroughly for the salary negotiation by determining a realistic salary as described above and preparing some formulations and arguments that you can use in the interview.

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