Addressing Salary Requirements in a Cover Letter: Do’s and Don’ts
Publié le 7 November 2024
Make sure that you get the financial compensation you deserve by understanding the do’s and don’ts of addressing salary requirements in a cover letter.
A cover letter is your ticket to a great job opportunity. This letter lets you showcase your work experience, demonstrate your academic achievements, and highlight your soft and hard skills. That’s why you’ll do what it takes to sell yourself as a professional in this document.
Here’s the catch: The salary is almost always a taboo subject to talk about early in any job application. But what if the job posting itself failed to mention any particular salary or compensation? How do you go about discussing these in your cover letter?
Understanding the do’s and don’ts of addressing salary requirements in a cover letter doesn’t have to be complicated. Doing so will help ensure that you get the compensation you deserve for your experience and work. Read on to learn more.
Why Employers Ask for Salary Requirements
Did you know?
Over 95% of organizations increased employee salaries in 2023 compared to 63% in 2020 because of tight labor markets, inflationary pressures, and employee retention concerns. Most of these companies have also planned to do so this year compared to the previous years, as shown below:
However, it’s still very common for companies or organizations to set their salary range when hiring. That allows them to manage their hiring budget and set proper expectations for job seekers.
Take it from Albert Kim, VP of Talent at Checkr. He claims that “employers are quite stringent in setting their recruitment budget for cost-savings benefit. That’s why they seek salary expectations from job applicants.”
Kim believes that employers ask for salary requirements due to the following reasons:
- Gauge candidates’ fit. Asking for salary expectations might seem straightforward, but seeing these on cover letters allows recruiters to filter the myriad of job applicants instantly. They’ll consider only those they can afford to pay!
- Manage hiring budget. Asking for salary requirements also helps hiring professionals set proper budgeting for recruitment. Salary negotiations let them save money in the long run since they can already filter the applicants early on.
- Set realistic expectations. Asking for salary requirements at the outset gives job interviewers an idea of what candidates expect. After screening the bulk of job applications, recruiters can set proper expectations during the initial interview.
Nora Sudduth, Founder and Owner of Nora Sudduth Consulting, stressed the importance of salary transparency in recruitment. “We often wonder why there’s a bit of hesitation in discussing salaries. These discussions usually happen at the final stage of the hiring process—during the job offer.”
However, Sudduth argues, “Being transparent all throughout can help both the hiring personnel and job applicants. While it provides candidates with proper expectations, such transparency allows recruiters to screen applicants more efficiently and effectively.”
The Do’s and Don’ts for Addressing Salary Requirements in Your Cover Letter
Job applicants should consider negotiating the salary and benefits to get what they deserve. However, studies have shown that most American employees don’t negotiate for better pay when they apply for a job. Only 34% of men and 28% of women did ask for a higher salary than the initial offer.
Why is there a need to negotiate for your salary? Heed the same Pew Research Center report:
Among workers who negotiated for a higher salary, 28% got what they asked for. About 38% received more than the initial offer but less than their pay request. Only 35% got what was initially offered.
Chris Aubeeluck, Head of Sales and Marketing at Osbornes Law, recommends addressing salary requirements. “This is especially true if employers indicate the range of their offer and the requirements as well. So, you better discuss this in your cover letter by aligning the salary with what you can bring to the table. Remember, the offer should match your value!”
Initiating salary discussion early on, however, is quite unusual. So, be wary of how you tackle the salary requirements in your cover letter. That said, here are the do’s and don’ts:
Cover Letter Do’s
It’s easy to write a cover letter explaining a career pivot. All it takes is to express your interest in a particular job and highlight your credentials. However, touching on the subject of salary in your cover letter is a bit critical. Here’s what you need to do:
- Do your research. What is the standard salary value for a particular job based on key factors, such as business size, industry or niche, and country or location? What is your worth as a professional vis-a-vis these crucial factors? Research lets you unravel the average salary of the job you’re applying for.
- Use a salary range. Based on your market research, you can determine the range for a particular job in a company. Job portals, such as Glassdoor and Payscale, offer a goldmine of salary information. Link to them as your legitimate sources!
- Frame it professionally. No matter how much you’ve researched and backed the wage range with sources, you still have to discuss the salary politely enough. Phrase it in such a way that you don’t sound like you are only after the salary. Remember, utmost professionalism is key!
- Focus on your value. You might mention your salary requirements for the job posting in your cover letter. However, center the discussion on what you can offer—your professional value. Ensure your salary expectation matches your credentials!
Learn from Volodymyr Shchegel, VP of Engineering at MacKeeper. He has his fair share of indicating his salary requirements on his cover letter when seeking a higher position
Shchegel says, “But your professional value is what gives you the confidence to ask for a pay you deserve based on your years of experience and expertise. This leaves you with a critical question: Do you have the credentials to support your salary request? Think about it!”
Addressing salary requirements thoughtfully not only sets clear expectations but also aligns with the company’s commitment to fostering transparency, showing that they value openness with their employees.
Cover Letter Don’ts
It’s easy to see job applicants committing glaring errors in their cover letters. However, you should avoid these common mistakes at all costs. And this practically applies to discussing salary requirements. Here’s what not to do:
- Don’t state a fixed number. Stating an actual figure sounds condescending and demanding. As cited above, having a salary range backed with valid sources is best. Remember, an exact figure is a big no-no!
- Don’t look unprepared. Drafting a cover letter must be well-thought-out. You don’t just write a salary figure you expect to get once hired. Let the recruiters know that you’ve done enough homework by citing sources for the salary information!
- Don’t make it transactional. Your cover letter shouldn’t sound like “I’ll do this; You give me this.” As mentioned, focus on your value as a professional. How can you be a valuable asset to the organization? How can you contribute to the company’s overall success?
- Don’t ignore specific requests. Employers might have particular requests for the salary requirements in their job postings. Make sure to address the nitty-gritty in your cover letter. This shows that you’re serious about the matters concerning your salary!
Jarret Austin, Owner of Bankruptcy Canada, suggests a critical review of your resume and cover letter. He believes that both can make or break your job application and career opportunity.
Austin explains, “Not only should you edit and proofread for incorrect spelling and grammatical lapses, but you should also pay attention to the content value. How does your message resonate with the hiring professionals? How can you convince them to give you the salary you deserve?”
Sample Cover Letter:
Based on the do’s and don’ts for addressing salary requirements, here’s a sample template for you:
| [Your Name] [Your Address] [City, State, Zip Code] [Your Phone Number] [Your Email Address] [Date][Hiring Manager’s Name] [Company Name] [Company Address] [City, State, Zip Code]Dear [Hiring Manager’s Name],I am writing to express my interest in the [Job Title] position at [Company Name]. With [X years] of experience in [Industry or Field], I am confident that my skills in [Relevant Skill or Experience] make me a strong fit for your team.In terms of salary, based on my research and experience, I believe a range of [$X – $Y] is appropriate for this role. I am open to discussing this further, as my main goal is to contribute meaningfully to your company’s success.In my previous role at [Previous Company], I [mention one key achievement related to the job]. I am excited about the opportunity to bring similar success to [Company Name] and discuss how I can add value to your team.Thank you for considering my application. I look forward to the opportunity to speak with you.Sincerely, [Your Name] |
Final Words
A cover letter allows you to sell yourself as a professional amid a flood of job applications. It highlights your employment experience, educational background, as well as knowledge, skills, and competencies. It’s your first step to a bright and promising career opportunity!
A salary discussion is often a big no-no in any cover letter. However, when a particular job posting has specific salary requirements, you should address them. Before doing so, consider the do’s and don’ts outlined above.
Better yet, use the cover letter template shared above and tweak it a bit when applicable. Polish your cover letter to the best of your ability, and you can get the job and salary you deserve!
