Salary History: Can you afford to say NO?

On July 11, 2011

In the July 12, 2011 Ask The Headhunter Newsletter, a job hunter questions whether it’s prudent — or even possible, when forced to use an online form — to say NO to an employer that demands your salary history.

Question

I read your article “Keep Your Salary Under Wraps.” While I found it to be an excellent article overall, I couldn’t help but wonder when it was written. Within the last several years, many employers have moved their application process to the web. Current salary (along with desired salary) is a required field in the online application, and there is no option to quote a salary range.

In this economic downturn, with so many people still without employment, the competition is beyond fierce. It’s definitely an employer’s market these days. Unless you are a highly sought-after executive or the best of the best in your field, the company has plenty of other applicants to move onto if you don’t provide the information they are seeking. 

As an HR professional, I don’t mind giving them my desired salary range, because I keep up with the market and I have done my homework. However, I despise the question, “What are you making currently?”, or, in my case, “What were you making in your last position?” As you state in your article, I don’t believe it’s anyone’s business, and it definitely has no bearing on what the job is worth. Yet, can I (or anyone else who is unemployed due to the recession) afford to be “contrary?”

Nick’s Reply

Here’s the short version of my advice: (For the entire column, you need to subscribe to the free newsletter. Don’t miss another edition!)

I wrote that article several years ago. But it’s still valid. I know the pressure is on, and employers don’t make it any easier with their cattle-call job applications. It’s up to you to protect your integrity.

salary history

Say NO to demands for salary history

I think good candidates must be contrary. They must stand out. Withholding salary history is not indicative of an uncooperative candidate. Demanding it reveals a company that’s not going to negotiate based on the candidate’s value. This is fundamentally wrong. I think you’re letting an employer’s poor management practices seduce you into complicity.

Don’t let application forms intimidate you

If an online application requires salary history, ignore the application. Find a better way in the door. As you point out, if you don’t cooperate, the company has plenty of other applicants who will do what they’re told, and destroy their ability to negotiate. Let the company have them. It wants cows, not people who think and act outside the box. Join a company like that, by playing along, and soon you’ll be looking for yet another job. The herd mentality hurts employers that rely on it, too—especially in difficult economic times.

Read what a successful job hunter has to say about this. He attended a presentation that I gave at Cornell University recently, then he interviewed for a top job.

“The hiring manager more or less offered me the position on the spot and indicated a salary range that is roughly 40-50% more than I make now. Your two biggest lessons (at least for me) at work in the flesh: Never divulge my current salary, and Talk about what I will do, not what I’ve done. They oughta make you a Cornell professor! I can already see that the one hour you spent with us will have as much impact on my MBA ROI as any class that I have taken in the program, if not more so.” — Rich Mok

That presentation was based on How to Work With Headhunters. The audience was a group of corporate executives in Cornell’s Johnson School of Management Executive MBA program. You don’t have to be an executive to stand your ground, but you do have to be the right candidate. (Otherwise, you have no business applying for the job!) Rich Mok reveals how to redirect an employer’s attention: Show what you’ll do to make the company more successful. Your salary history (and your resume) won’t matter so much. I’ve seen this work at every level of compensation.

Don’t compromise yourself to appease an employer

You clearly agree that salary history is no one’s business. Then why capitulate and compromise yourself? You need not forego an opportunity if the application requires salary history. You just have to demonstrate your mettle and find a better way in the door. Being contrary when the world behaves foolishly doesn’t mean you’ll be rejected. It makes you stand out. It’s what makes you worth hiring — and worth interviewing.

Do employers force you to disclose your salary history? It’s a perennial argument. You feel you can’t afford to say NO when an employer demands your salary history. I say you can’t afford to disclose private information.

So, what do you do? Can you protect your integrity and still apply for the job?

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Readers’ Forum: The ethics of juggling job offers

On September 20, 2010

In the September 21, 2010 Ask The Headhunter Newsletter, a reader asks how to deal with two job offers, when you accept one then a better one arrives a few days later.

Question

I am in this dilemma and read your article about Juggling Job Offers. Yours is the only one that says to accept the first job offer, and when the second job (which would be a better offer and more suitable) presents itself, then retract acceptance of the first job offer.

However, the other articles and guidance suggests not doing this at all as it is unethical and can damage one’s reputation in a given industry. I have gone back to the first company and gotten a decision window of one week to decide. The timing is off as I need one more week for the second job’s response and possible offer.

Do I ask for yet another extension? Any thoughts?

Nick’s Reply

Here’s the short version of my reply. (You’ve got to subscribe to the weekly newsletter to get the whole story!)

Sorry, but I don’t buy the ethics angle on this. As I point out in the article, if a company lays you off six months after hiring you, is it behaving unethically? No. It’s a business decision. What if it lays you off a week after you start, due to unexpected financial setbacks? What’s the real difference?

How many job offers do you really have?

The fact is, in a situation like this, you are not making a choice between two job offers. You are making a binary choice: Yes or No to one job. While I hope the other offer comes through, I can tell you that in many years of headhunting I’ve seen most “sure thing” offers go south. Either they are delayed indefinitely, or they never come through.

Is this about ethics or business?

I agree that accepting then rescinding your acceptance can have an effect on your reputation. But likewise, a layoff has an effect on an employer’s reputation. Still, sometimes it happens out of necessity. It doesn’t make the company (or you) unethical. It’s a business decision.

I’m not trying to downplay the seriousness of rescinding an acceptance. But to behave as though the second offer is a sure thing is to put the first offer at risk. Is it unethical to continue to ask the first company — which has stuck out its neck and and made a commitment to you — to keep extending the decision deadline?

How many times will the second company need “one more week” to produce the offer, if it produces one at all?

Sorry, but a bird in the hand is the only bird you’ve got! Decide about that, and then deal with the future later.

For more about this thorny topic — and how to deal with job offer challenges — see Fearless Job Hunting, Book 9: Be The Master Of Job Offers.

Am I being unethical? Is it wrong to accept an offer then change your mind because a new offer is better?

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Military transition & discipline

On September 25, 2008

My office is nice and cozy. I have a big cherry-wood desk and a great chair. Views of woods and grass through lots of big windows. It’s a peaceful habitat.  No one bothers me. I know I’m safe, and in a few hours I’m gonna see my wife and kids. So now I’m going to try and show my gratitude to one guy who foregoes everything I just described, every day and every hour, to ensure that I can enjoy what I have all day long, every day. That, and my thanks, won’t make him one bit safer where he is, but I hope maybe it’ll help him through his military transition into a good job when he returns home.

military transitionQuestion

Nick,

I’ve thoroughly enjoyed reading your blog in my free time over the past week. I’m a Captain in the US Army, currently stationed in Iraq and making the transition to civilian life in the next 6 months. I was wondering if you had any tips for someone in this unique situation that could smooth the transition from a mid-level military officer to a managerial or leadership position in the business world?

I’m currently serving in the Logistics branch, so I believe my skill set will translate well, but I need some pointers on how to sell it. As officers, we are bombarded with spam from headhunting firms and database job mills (often to our professional email addresses). The majority of my peers have used these services with mixed results. Perhaps you could give some guidance in one of your upcoming posts?

Thanks for your time,

Kevin W. Ryan
CPT, LG
ISF Logistician

Nick’s Reply

Hi, Captain Ryan,

Thanks for what you and all our military do for us — I’m glad to offer any advice I can, hoping it might be useful.

Here’s the best initial suggestion I can make to you:

  • Don’t go looking for open jobs.
  • Avoid the job postings and ads.

If it’s open and posted, the competition is already so huge that your odds of success have dropped like a rock. The quality of your credentials and skills is almost irrelevant because the systems (human and otherwise) used to sort through applicants is not good at separating signal from noise.

Your best bet is to figure out what you’d like to do, and who you’d like to work for. Start with industry — which one? It helps to start with good targets. Don’t waste time with second-tier companies. Start with the best, the shining lights, whether they’re big or small. Research their operations, figure out what job functions might match your skills and interests. (Don’t get too specific. Like the guy said, most of what we know we learned in Kindergarten. The rest is about riding a fast learning curve without falling off.) The key is that it’s up to you to map your skills onto the work, as best you can.

That’s how you pick the job(s) in the company — not from ads.

Once you’ve selected a handful of companies, and identified some functions and jobs, you need to make new friends. Something like 40-70% of jobs are found and filled through personal contacts. So don’t waste time with other channels. The next task is to work backwards from contacts you already have, and ones you can develop quickly, to meet and talk with insiders — people connected to each target company. They need not be employees. They might be vendors, customers, attorneys, accountants, landlords, bankers, etc. Find them any way you can — one good way is business articles about the company. Look for names of such folks. Google them, email them, call them. Be brief and respectful. Explain you’re considering working for company X, and you know they do business with X, and you’d like their insight and advice. Have a few good, friendly questions to ask about the company.

You score when the person personally refers you to someone in the company for more information. That’s when the real fun starts.

Use these introductions (you need only a handful, and you may have to talk to lots of folks to get them) to more closely map yourself to the work and function in the company. The best way to tackle this is to ask:

“What problems and challenges is your company facing in [logistics, purchasing, marketing, whatever]? Can you give me a little insight? I’m interested in working for your company, but I haven’t yet identified where I can contribute the most to the bottom line.”

It takes only one savvy manager to hear the words bottom line, and you’re in.

This is actually a lot of fun, because you’re meeting new people, learning new things, and getting into the circle you want to be part of. If you’ve got six months, I encourage you to start now. It takes time. But it’s the only reliable way to get in the door and find the job right for you.

Employers are lousy at figuring out what to do with job applicants. Most of the time, they realize people are just looking for a job, any job. If you start by picking an industry, a handful of companies, and then focus on mapping yourself onto a company’s challenges — that’s how you use your brain to create your own job opening. More likely, you’ll identify something that’s about to come open, and you’ll be the first candidate to interview. No competition. And due to the research you’ve already done, your motivation will translate into very effective dialogue in interviews. While your competition is answering questions like, “What’s your greatest weakness? If you could be any animal, what animal would you be?”, you’ll be busy explaining how you think you could add 10% to the department’s bottom line. Big difference!

Do me a favor and stay in touch. I’m glad to help. You’re ahead of the pack already because you took time to make contact in the business world. Keep doing that. Reach out to insiders in your target industry and companies. Forget the job applications and resumes. Do this right, and you won’t need a resume. The conversations you have will evolve straight into interviews.

You might have noticed that I didn’t mention military transition once except in the title of this post. That’s because the same methods that work for everyone else will work for you, because this is all about delivering profitable work, no matter where you’re coming from.

The edge you have is discipline. The military has given you that in spades. It’s something every job hunter in the civilian world needs, because roaming the job boards isn’t a task. Identifying your objective, focusing on it, pursuing it, and not stopping until you attain it requires… well, you get it. You don’t need to transition. Just apply your discipline to the task at hand and don’t abandon what you learned in the Army about getting the job done. Not to be rude, but civilians won’t be much competition.

Start with The Basics: Pick your targets. You know the old saying, you can’t get there if you don’t know where there is.

Be safe. I’ll be thinking about you.

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