A recruiter claims that this salary phrase in job descriptions is meaningless—here's how to interpret it.

The use of the ambiguous phrase "competitive salary" to describe what companies will pay is on the rise, despite the increasing number of transparency laws nationwide.

The percentage of U.S. job postings on Indeed featuring the phrase increased to 3% in May from 2.5% in the previous year, according to the employment website.

Indeed reports that there is a slight increase in job postings with unclear pay ranges, reflecting thousands of posts.

According to Jeff Hyman, an executive recruiter with 28 years of experience, companies use the term "competitive salary" in job postings to either mistakenly believe it will attract candidates or to maintain their flexibility to offer varying pay based on a candidate's specific qualities.

Hyman tells CNBC Make It that for job seekers, the phrase "it's a useless, throwaway line" is meaningless.

"According to Jennifer Herrity, a career expert at Indeed, the term 'competitive salary' implies that the pay for the role is equivalent to what similar roles in similar industries and locations offer. However, without additional information in the job posting, the phrase places the responsibility on the job seeker to determine what a competitive pay range might look like."

During the job application process, if there are no clear salary ranges, here are some ways to discuss compensation.

Know your worth

To confidently and realistically advocate for your desired pay, first determine your worth in the market, Hyman advises.

Recruiting leader Bonnie Dilber at software firm Zapier suggests using websites like Glassdoor, Levels.fyi, and Payscale to obtain salary benchmarks for your position and industry or a specific company.

To determine your possible pay range, you can ask colleagues in similar roles about their salary levels and factor in cost-of-living adjustments based on the region you're applying to, according to Hyman.

Don't ask until the second interview

It is crucial to inquire about pay early in the hiring process to avoid wasting time, but it is equally important to delay asking too soon, according to Hyman.

"He advises against doing it in the first conversation. Instead, wait until the second or third interview, when the hiring manager is more invested in your candidacy and "on the hook.""

"What do you see as the market compensation for [this position]?" Hyman asks.

He states that people tend to be hesitant when it comes to expressing numbers in writing.

It is recommended to have a pay discussion with the hiring manager, who is the person you will be working for, rather than a company intermediary like HR or a recruiter. The reason for this is that the hiring manager is the "buyer" who feels the "pain of an open seat" on their team, according to Hyman.

He predicts that they will receive a more generous compensation package.

'Play dumb'

Employers may inquire about a candidate's salary history, which is illegal in certain states and municipalities, and inquire about their expected salary in a new role. However, it is advised not to disclose this information too quickly in a negotiation, as doing so may result in a loss.

"Negotiation 101 states that any number thrown out during a discussion becomes the anchor, and if you throw out a number that's 20, 30, or 40% less than what the company was thinking they might need to pay, you risk shooting yourself in the foot."

Instead of answering the question directly, Hyman suggests responding with "respectfully turn it around" and "play dumb." When asked about expected earnings, he recommends saying, "I'm really not sure. You've been at this a while, you've been seeing other candidates — what have you found to be the market for this role?"

"Answer with what I would call a non-answer," Hyman says.

The hiring team may require a specific response, but the applicant can offer their own range. The low-end number should be the "absolute lowest compensation" they are willing to accept, while the high-end can be up to 100% higher than the low-end figure. This wider range may be more suitable for applicants negotiating compensation that includes more than just a base salary.

"Hyman advises that it is better to let the company have the first crack at the numbers, but only if pushed multiple times."

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