How to handle salary discussions before you have a job offer?

Is their offer a fair one for the position? and is it good enough? If you're having this much of a conundrum about compensation at this stage of the process, how do you think it will be when it comes time for a review and/or raise. Going only by what you have posted I would tell you to pass on it. If it doesn't feel right, it doesn't feel right. The real question is whether the "sacrifice" (ie salary cut) is worth it. Only you know that. You can try to negotiate the gap if, again, *IF* they offer you the job. If they do, I personally would tell them that I would love, love, love to work for them but they are asking me to make a difficult decision by not coming close to my requirements. It's tempting to go for an opportunity you've been waiting to present itself but at the same time you need to make sure it's right for you. Lastly, this is business. Don't take it personally. Ask for what you need otherwise they won't know and they're not just going to give it to you.

They're being up-front with you, and they've upped from "a number-ish" to "a bit higher and more specific number-ish", so they're feeling you out. If I were you, I'd say that you should be equally honest, and say that their benefits et al as described would certainly offset some of the salary discrepancy, but that the gap is still larger than you want it to be -- but that you hate to walk away given what you've learned about the company and what a good fit you think it might be, so you'd like a bit more time to consider it, and you'd like to meet some of the people you're going to be working with. And then follow up on that. Of course, if after taking that time and meeting those people you still can't come to grips with the salary difference, say so and move on. It's been said, this is just business, and so you should be businesslike about it and avoid wasting their time (by being up-front about the salary available, they're not wasting yours.) Oh, and there's no guarantee there's more money; it's possible they do, but it's also possible they have three candidates they like, and they like you best, but HR doesn't want to pay the premium for you...and with two other candidates on the table at a lower price, they won't. Or that their system simply caps the salary and that's that, no flexibility. So don't take it personally, and know that you should be aiming for a package you will be happy with, not trying to stick it to them or milk them dry.

I don't think you should discuss salary any further until they have offered you the job.

I think davejay gives good advice here. I frequently hire for grant funded positions, for which the salary range is very limited. I open interviews (on the phone), particularly with people on the high end of the qualifications spectrum, with describing the salary. There really is no more money to offer even the most qualified applicants, so it seems worth everyone's while to be up front about it.

In addition to salary, you may want to consider bringing into the negotiation other parts of the compensation package. For instance, is there a performance bonus that can be negotiated? Also think about non-cash benefits that you value, including vacation time, schedule flexibility, training & education, etc. Hiring managers sometimes have more flexibility on non-salary benefits. The more options you can introduce into the negotiation, the more likely it is that you reach a happy agreement.

The single best bargaining tactic is to walk away (not literally... don't be rude or anything like that). If they really want you, and know they won't get you unless they bump the salary, I think you'll find it amazing how money can be "found" a few weeks later. Like ellF, I wouldn't take such a large pay cut, either. Just make sure they understand that, except for the money issue, you'd be thrilled to work there. But also keep in mind that sometimes there's simply nothing the hiring person can do about it, and move on until you find a better financial match. Either way, you definitely need to bring this up ASAP since they've been so up-front about their position from the beginning.

You don't mention how you feel about your current job. If you hate the job you have now and this job seems to have high potential for growth, the pay cut might be worth it. Have you asked about their schedule for pay raises? Are they annual? Do they have standard raises or merit raises or a combination of the two? could between their matching retirement contributions and a couple of raises you would quickly match your current salary. Good luck! (And let us know what you decide!)

It's unlikely they'll actually offer you this job at a large pay cut, as they know you'll fly the coop as soon as you find something else that pays better. If you do decide to take this job, do as blue mustard says and negotiate additional time off. If they generally give new hires 10 days vacation a year, ask for 15. Time, as they say, is money.

But a 20% salary cut is still hard to take. It’s a much tougher decision than it would be if they could close that gap a bit more. Just as a data point: I work in nonprofits. In January I accepted a new job (which I love) at an 18% salary cut from my old job (which I hated, and was making me nuts). Now, because of the economy (our heating oil price has doubled, increasing food prices, etc.) I'm once again looking for a new job (probably returning to the corporate world) because budget decisions that worked in January no longer work in July and really won't work in November. This is a tough economy to be taking a pay cut in, especially if the cut is that big and will possibly bring your finances down to a more borderline status.