“How do I answer the salary question?” From seasoned executives to professionals just beginning their climb up the career ladder, that is the number one most dreaded question and the one most frequently asked of me by my clients.

When it comes to our salaries and compensation packages, even the fiercest negotiator who is comfortable navigating through multi-million dollar deals, turns from a lion to a lamb when the transaction they’re negotiating involves their own livelihood.

What makes it such a difficult question? Well, first of all, it involves each of us personally and directly (there’s some ego attached as well). Secondly, most of us are not comfortable talking about how much we make. But thirdly and perhaps the most prevalent reason is the fear that we’ll come in too low and leave money on the table or come in too high and lose the opportunity all together.

The answer oftentimes depends on how the question is framed. If the hiring manager asks you, “What have you been making?” that’s easy, tell them. The company can always ask to see your  previous W2 forms anyway. Once you have the offer, it’s reasonable to request an increase by explaining that one of your goals with this career move is to improve on your previous compensation.

The harder question is, “What are you interested in making?” Before answering this question, you should do some research on the position, location and industry, using such tools as www.salary.com or www.glassdoor.com. In this way, you can get a general idea of what the market is paying for the type of position for which you’re applying, thus enabling you to develop a reasonable answer to the question.

There’s a saying that he who gives the first number loses. However, when you’re working with a recruiter, the salary question is what determines if you’re playing in the same ball park or in an entirely different league. When speaking with a recruiter, tell them what you’re looking for so you don’t waste each others time.

If you’re talking directly to a hiring manager (rather than a recruiter), sometimes you can put off answering the salary question by suggesting you need to know more about the position and duties before you’d be able to answer the salary question intelligently. But if that doesn’t work and you’re forced to name a figure, giving a range is also an acceptable option. Just make sure the low end of the range is a figure that’s palatable to you, because that may be the figure you see when you receive the offer from your prospective employer.

~Linda