September 15, 2010

Should I disclose my salary history when asked?

• 2 Comments |
• E-mail |
• Print
• • Share:
  •  
  •  
  •  
  •  
  •  
  •  

By Kristen Fife
NWjobs

Q: A lot of job applications and recruiters ask me for my salary history up front. Couldn't I be losing some negotiating advantage by providing this information?

Kristen says: It is an erroneous perception that recruiters ask your salary history to try and lowball you at the offer stage. There are several reasons why a recruiter asks you for your salary requirements in the beginning of a conversation.

Every job with every company comes with a base salary/wage range. This range is determined by a number of factors, such as market competition and internal equity (what the existing employees are making in relation to each other and new employees doing the same job). Other factors that can influence this range for a specific candidate include the person’s history and expertise, and whether or not the job is aligned properly for the candidate’s career level.

Sometimes, if a very senior or junior candidate applies for a position, the recruiter can work with the hiring manager to re-level the position and salary to align it with the candidate’s needs.

It is also important to realize that “compensation” isn’t just about your paycheck. It’s also about benefits such as health insurance and time off, retirement programs, training or educational support, company equity and performance bonuses.

For example, if you were employed at a small startup, you may have had a lower base salary, but a substantial stake in the company’s equity from being on the “ground floor.” Or perhaps your former employer offered fully paid medical premiums for you and all your dependents. Often, employees are rewarded with hefty annual bonuses that significantly increase their total compensation. These different components are all part of your compensation package.

Before you start disclosing your salary history, make sure you have done your research (payscale.com and salary.com are good tools). If you find you have been underpaid by a significant amount, make sure to add up your total compensation package.

I generally suggest that if you are asked for a number, you give a reasonable range for your profession and industry. Your goal is to be within the median to high end of your industry and position when discussing compensation. Ask the recruiter about all the factors mentioned above. Finally, if money really is the most important thing for you, by sharing that information up front, you save yourself and the recruiter a lot of valuable time if the company cannot accommodate you.

• 2 Comments |
• E-mail |
• Print
• • Share:
  •  
  •  
  •  
  •  
  •  
  •  

Read more
Recruiter's Inbox,

2 Comments

boop on September 17, 2010 3:27 PM | Reply

This does not really answer the question: Why do recruiters ask prospective employees what they made at previous jobs?

WM on February 21, 2011 7:16 AM | Reply

It's also a bit of nonsense. I have been in a hiring position before. While I might pay a premium over their last job if I thought the candidate was worth it, I would also offer less if the candidate's prior salary was low and I thought they'd take it. Why pay $20 an hour if the person coming to you was making just $14 an hour?

Leave a comment

* required field

Your name: *

E-mail address: (Will not be displayed)

Your comment: *

Captcha:

Type the characters you see in the picture above.