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Here's an E-Z way to make more money the next time you change jobs: Do NOT tell the HR department or hiring manager of the company with which you're interviewing how much you make in your present job....
Trust me, they'll always ask "How much are you making now?" Do NOT tell them! They'll look irritated and ask again, as if you might not have understood their question. But simply stick to your guns and politely say, "Until we reach an agreement, I'd prefer to keep my W-2 figures private. I understand that the salary range for this job is $___, and that is acceptable for me." End of story.
Here's why: On the one hand, you might be the best qualified candidate for the job, even though you make $20K less than the other candidates under consideration. No good deed goes unpunished: If you tell the company your salary, they will low-ball your offer -- thereby penalizing you for the fact that you just happen to be underpaid in your current job. Happens all the time.
On the other hand, if you currently make $20K more than the job for which you're applying but would like the position for personal or professional reasons, the company might throw out your application on the grounds that "no normal person would be happy taking such a pay cut." This happened to a very good candidate of mine recently. I call this "salary discrimination," and although it's not illegal -- it's still unfair, in my opinion.
The fact is, it doesn't matter what you make with regards to a new job. As we used to say in the beef trading business, the market is the market.
Think of it this way: Suppose you wanted to buy a 20-year-old house from a seller who originally paid $100K for it, and the seller wants what other houses on his street are currently selling for: $500K. Would you say "Sorry, but you only paid $100K for it, so I'll give you a 15% raise and you should be happy." No, you wouldn't. But employers do this all the time with job applicants.
Don't let this happen to you! Just tell them that you wish to keep your W-2 figures private and leave it at that. They'll brow beat you -- but if they're really interested in you, they'll keep the dialogue moving.
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Comments
Too bad this practice can't be made illegal similarly to asking candidates if they're married, or how old they are.
Posted by: Elaine Fogel | 05.11.06
I understand the theory here and agree with Elaine -- candidates shouldn't even be asked. But if you are a candidate itching for a job -- seriously, you *really* want this job -- and an HR person asked you "The Salary Question"...you'd have to be feeling pretty confident to decline to answer, don't you think? Would you worry about NOT answering?
I honestly don't know -- but I'm wondering how many candidates would feel comfortable and secure enough to do so?
Posted by: Ann Handley | 05.11.06
It's a game of "chicken."
I have seen this backfire on candidates, and I have seen other candidates get huge salary increases because of this tactic.
Last year, one of my top VP-level candidates simply refused to disclose his salary -- period. I presume that his new employer discovered his old salary only after the candidate disclosed his SS# for payroll purposes.
Some Rules of Thumb: If the client reaches out to you first, then you can be somewhat bullish in your dealings with them. If you contacted them, then you have less room to call the shots. Jobs that require a high degree of specialization allow for bullishness. Garden-variety, lower level jobs don't. For the most part, it's about supply and demand.
either way, it's a judgement call on the candidate's part. The extent to which you can play your cards close to the vest, you'll do better in a salary negotiation.
Thanks for reading.
Harry
Ph. (678) 795-0900
Posted by: Harry Joiner | 05.11.06
I had this come up at the tail end of a long interview process. By this time they were ready to make an offer, and I knew I was not supposed to reveal salaries...I was determined to stick to my guns. The HR guy cornered me and asked the question three or four times, arguing that he understood my reasons but it would help us both if I just gave him a figure. I evaded the question about three times, but then it just got ridiculous, and I caved. It was obvious he had been through this process a lot more than I had. I know I gave him the upper hand at that point, but I was cornered. What does one do when up against an HR professional who has played this game before and is trained to put you on the spot in a negotiation?
Posted by: Monica Powers | 05.17.06
It is truly a game of "chicken" as Harry writes ... so the question is, "What is death in this case?" ... you don't get an offer and the potential job dies ... like any other negotiation situation, what are the consequences of no agreement (the CNA) or the best alternative to a negotiated agreement (the BATNA) ... if it's the only potential job offer in your pipeline, it's hard to be as bold ... if you have a full pipeline (just like in sales), you can be more aggressive.
As they say in sales, don't negotiate alone if you're pipeline is weak and you're below quota ... or when shopping for houses - "fall in love with three"
Posted by: Michael | 08.06.06