Salary
Q "Divulging salary history"
I am in the process of looking for a new job. One of the things I frequently see in
various advertisements is a request for salary history. I am hesitant to give out my
salary history because I am looking for an increase in salary. Also, I am not sure how to
include salary history. If I provide a prospective employer with this info, do I include
it on my resume or in the cover letter?
A You've brought up one of the more serious flaws in the Employment System.
Employers have no business asking for your salary
history. It's confidential. It has nothing to do with hiring you. Imagine what they'd say
if you asked to see the history of salaries they've paid for this job over the past ten
years. Or, if you were to ask the manager what his current salary is. Sorry, Mr.
Manager, but what's good for the goose is good for the gander.
The excuse employers make is that your past salary helps
them determine your experience level, it pegs your value, and it helps them establish a
new salary for you.
Hogwash. By that logic, they don't need to interview you.
All they need is your salary history and you're off to the races. By using the figures
other employers have used, they'll know what their job is worth and what you are worth.
And they'll win the lottery, too.
Salary is a judgment of value. It's incumbent on
an employer to figure out what the job he wants done is worth, quite apart from who you
are, what you've done, or what you've been paid before. In the interview, the employer
factors in his judgment of how you would contribute to the success of that job. That's how
an offer should be derived. It shouldn't matter what you were making at your last job,
especially in a world where 17-year-olds who were earning five bucks an hour flipping
burgers last year are earning $40k this year designing web pages, and where $100k
executives are seeking $50k sales jobs.
Bottom line: when you divulge your salary history, you
put yourself in a corner that's very difficult to negotiate your way out of.
Here are my suggestions about how to deal with the
"salary history" problem.
Skip the classifieds.
The ads are the subtle beginning of an employer's effort to gain an edge in negotiations.
If you're dealing with ads, you're made to believe that if you don't submit all the
information that's requested, you won't even be considered for a job. And know what?
That's true. How do you deal with this? Don't respond to the ad at all, because your
resume and application essentially go to resume jail -- in some personnel jockey's drawer.
Don't be afraid of forms.
If you must fill out a form, list your salary as CONFIDENTIAL, to be discussed only with
the hiring manager. (Alternately, cross out the "salary history" title on the
form and replace it with "required salary range".) If a company insists on your
salary history to determine where you'll fit, they should divulge your boss's salary so
you'll know where you might "fit" in the future. (Funny how this logic works
once you think about it.)
Deal with managers directly.
Ask The Headhunter is devoted to teaching people how to control
the job search, not how to follow some administrator's "processing rules". If
you're going to divulge your past salary at all, gain an edge in the process. There's
nothing wrong with saying to a personnel rep, "My salary history is confidential, and
I will discuss it only with the hiring manager." Could it jeopardize your chances?
Sure. If you don't want to rely on "chance", don't talk to personnel jockeys.
Lead with your requirements.
What does your past salary matter if you won't accept an offer below $X?
(Understand that this cuts both ways: you've got to be willing to figure out what your
abilities are worth.) If you decide to divulge what you've earned in the past, do so by
firmly stating that your current salary is one thing; your required salary range is
another. This is how you level the playing field: by getting them to divulge the range
they're willing to spend. If there's no agreement on the range, you probably don't want to
interview. Don't feel you're "pricing yourself out" of the job by doing this. An
employer knows what range she can pay; you're not going to materially change that by
"avoiding the salary discussion until you can impress them".
There is no pussyfooting around on this subject: When you
provide your salary history, you give up your negotiating leverage.
If this sounds extreme, consider how you're going to feel
when you're offered less than you want and you've already spent hours of your time in
interviews, and weeks waiting for an offer. It's a simple fact from the world of
behavioral psychology: the more the employer puts you through, the more likely you are to
rationalize accepting a low offer. (The phenomenon is referred to as "cognitive
dissonance".)
Now let's get to what's really troubling you: all
employers seem to require salary history at some point or other. How can you buck that?
You stand up for what's right. To steal a little from Arlo Guthrie, imagine if 10 people a
day refused to provide salary info. Then 50 people, then a thousand people a day, all
challenging employers to figure out for themselves what a worker is worth before hiring
them. The world will change.
Any company that rejects a good candidate because he or
she refuses to divulge salarly history isn't a very smart company, and certainly not a
competitive one.
You will clearly need to make a judgment about each
situation as it arises. This need not be an adversarial approach: you'll find that many
managers will respect your position if you present it candidly, then immediately turn the
discussion to how you can help the company be more successful and profitable.
Making an issue of salary history does not require being
rude or presumptuous. It requires that you be polite and firm.
But, don't be afraid to make an issue of it if it's
important to you. It may cost you some opportunities, but you've got to draw a line for
yourself.
Best wishes,
Nick Corcodilos
Ask The Headhunter
NOTE: For a more detailed discussion about this topic, and for advice about how to
get past this awkward question without upsetting an employer, please see the article Keep Your Salary
Under Wraps.
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