Eric Wise

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How to handle the 'dreaded salary history' question

One question that seems to consistently bother people is how they should respond to the "salary history" question in pre-screening and interviews.  I for one, refuse to ask this question, because:

1. Previous salary has nothing to do with potential salary, and has very little to do with what is fair for the current position.

2. Frankly, since an employer is rarely up front about posting what their willing to pay for a position, it's none of their business about how much you used to make.

Regardless, many employers ask anyways, and depending on the situation here is how I respond:

Pre-screening: This is where an employer asks you to send your salary history and requirements in your cover letter.  The proper response to this is not to lie or exaggerate.  However, just posting numbers can hurt you as well since if you were underpaid or there were extenuating circumstances (like a killer benefits package in lieu of salary) you need to make that clear as well.

I tend to respond to the history/requirements by giving my title, description of my duties, and my start/end salary for the position.  I also make note of any perks like telecommute days, education, conferences, bonuses received, etc since they all affect what I'm willing to accept as compensation.  For the salary requirements, I try to give a wide range with wiggle room.  For example, if the minimum I would personally accept is $80,000 / yr, I like to say that my expected salary range is $80,000 - $95,000 dependent on the entire benefits package offerred. This basically tells the employer my salary is flexible, and if they throw some intangibles / non monetary perks my way, I'll take less salary.  It also helps to take their job description/title and run it through a site like salary.com and point out what you perceive as the fair range for the position.  Realize that if your high end matches their low end of their willingness to pay, you'll get the lowest they are willing to pay and your highest amount.  In negotiation terms this is "fair" but you did shoot yourself in the foot.  That's why a wide range is a good thing, since it will put your high end past what they would be willing to pay but your low end should be inside their range.  You may be surprised how good an offer can be if you impress in the interview.

Direct Question in the interview

This one causes a lot of people to freeze, especially if they are embarassed about their current salary.  You have a couple of options here:

1. State that your compensation was $X which was fair for the position/duties and that you expect to continue to be paid a competitive/fair compensation for future positions.  If you are leaving your old employer because they don't pay you enough, be up front that you feel that you are more valuable than you are being compensated for.  Never, ever lie.  The only risk to this is that you didn't really answer the question which might annoy the interviewer.

2. When giving a number you expect to be compensated, try not to settle into a definitive value until the final stage.  As a starting point for the negotiation, give that wide range I talked about above, and say that you would need more information on the whole employment package before you could commit to any number.  This puts the ball back in the employers court without offending them.  If an employer is too forceful about getting number X without giving you the information that makes you comfortable, you probably don't want to work for them anyways.

Negotiation is more of an art than a science.  It takes courage to negotiate with an employer, especially when you really want or need the job.  However, by being open, honest, and flexible, you can not only impress your employer, but also get what you really want/need.


Posted Thu, Nov 2 2006 9:37 AM by Eric Wise

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Comments

Jacob Proffitt wrote re: How to handle the 'dreaded salary history' question
on Thu, Nov 2 2006 11:05 AM

Giving salary information is never in your best interest as an interviewee. It's a candidate filter and can only eliminate you, which is what makes it a tricky question. It's also a way to put you at a disadvantage in eventual salary negotiations by revealing your hand up front. There *is* a legitimate reason to ask, but it's a very narrow one--to make sure they aren't wasting time with someone who wouldn't accept an offer in their range. Time you would be wasting as well, so that works out.

Realizing this, I'll answer the question by redirecting salary history discussions to what the potential employer thinks the position is worth. That moves the topic to much more useful discussions and lets you know how they evaluate the value of the open position and gives you the opportunity to tell them if both of you are "in the same ballpark". I'm careful to discuss this "in good faith" by giving my own opinion of the value of the position based on their description (prior research is invaluable here as you suggest). I'll even go first if they seem uncomfortable revealing their hand. If our evaluation of the market value for the position roughly matches up, I'll even tell them if I'm comfortable in the low end or if I insist on something in the high end.

If they want to be more specific, I'll redirect them again by asking if that means we have moved to salary negotiation because they have decided to make me an offer. Never that bluntly, of course (unless pressed). Still, it's important to recognize that salary discussions properly belong as the last step to hiring you. No manager would discuss salary with a company they're interviewing for until that final stage so don't do something they wouldn't do in your place. They shouldn't open the salary question until they're ready to make you an offer. If you aren't at that stage yet, don't do it. If you're open about your reasons, it shouldn't be a problem. Plan how you're going to say it ahead of time, but if you're careful to be clear and honest, it shouldn't be a problem.

I categorically refuse to give salary information in a cover letter. If they want to pre-filter that badly, they can give a salary range for the open position. If asked, I simply leave it off. If they decide my omission is sufficiently severe to refuse an interview, then they probably aren't someone I want to work for (anyone who insists that I must cripple myself before entering negotiations isn't someone I want to do long-term business with).

bryan wrote re: How to handle the 'dreaded salary history' question
on Thu, Nov 2 2006 1:10 PM

<quote>

I also make note of any perks like telecommute days, education, conferences, bonuses received, etc since they all affect what I'm willing to accept as compensation.

</quote>

while reading this it struck me since i engage a similar approach to you...

why should telecommute/education/conferences be a perk/compensation?

i know it's "normal" to see them as perks... and i've always considered them as such, but somehow, meditating on that concept from a different angle, i do think that those should be non-negotiables since they add tremendous value to the company ultimately...

so don't you sell yourself short by negotiating intangibles like that in lieu of salary?

... as a different angle on the "tradition" :)

Eric Wise wrote re: How to handle the 'dreaded salary history' question
on Thu, Nov 2 2006 2:17 PM

I don't know about that.  When I telecommute, it saves me gas, time, eating out for lunch (yeah I could pack but I don't).  That saves me about $20 a day directly from my pocket as well as what my time is worth, since it's a 90 minute roundtrip commute for me.  My time is priceless ;)

So yeah, if a company lets me work from home, I'm willing to knock a few grand off my salary.

Education/conferences it depends for me.  Education since I'm finishing my masters in december doesn't do much for me anymore.  But my company sent me to TechEd this year and it was a blast.  Costed them about $5k, considering I would shell out $1500 or so to go myself, this is a good deal for me and worth a bit.

Depends on what you care about though, that's why we negotiate.

Sahil Malik wrote re: How to handle the 'dreaded salary history' question
on Thu, Nov 2 2006 3:32 PM

Okay here is a Question to y'all.

Lets say, there was a company that told you that you will need to work, at an average a 10-12 hour workday everyday .. AND .. it involved a 2 hour commute in each direction (you don't have the option of moving closer to work), and there was atleast 50% travel involved .. what kind of extra compensation would you expect to justify that, as compared to a job that involves 30 minutes of commute versus consistent 8 hour workdays and no travel.

And please be realistic in your replies :)

Jacob Proffitt wrote re: How to handle the 'dreaded salary history' question
on Thu, Nov 2 2006 3:54 PM

Sahil,

You literally couldn't offer me enough to accept a job that required 10-12 hours a day on top of a 4 hour commute--never mind the 50% travel. Seriously. $1mil/year? No deal. Frankly, I'd be calculating a 25-50% salary premium for either the work hours or commute by themselves (high end for commute, lower for work hours). Work is work, and I do work that I enjoy (for which I consider myself very fortunate). But life is more than just work and my discretionary time is extremely valuable to me.

After basic living expenses, money just isn't as motivating as managers like to think.

Sahil Malik wrote re: How to handle the 'dreaded salary history' question
on Thu, Nov 2 2006 4:13 PM

Jacob,

Fair answer. Thanks for the honest perspective. So a 25-50% premium on commute/extra work - lets say that translates to an additional 25K per year (approx). So if such a job gave you an extra 25K - you'd take it.

Frankly, I am guessing your answer is still "no" because an additional 25k is just a number on an online banking website, if you hate the job 24/7. Seriously a job is your world - you'd better like what you do.

I'm with you on that, but I could learn to appreciate such a job (just different point of view I guess). What I can tell you for sure is that I wouldn't do all this ass polishing for no extra compensation :).

SM

Eric Wise wrote re: How to handle the 'dreaded salary history' question
on Thu, Nov 2 2006 8:39 PM

I have a wife and kids.  I would never spend that much time on the road and at work.  Of course you did toss in that you couldn't move closer.  If the money was enough to lure me into something like that, it would involve me being able to move closer.

Honestly, even though my current job only "requires" a straight 40, I usually put in 50-60 just because I like what I'm doing... and because they give me a laptop and VPN.  I put in almost nil overtime at the office, but often do extra work at home on nights and weekends.  If a company demanded 10-12 hours in the office frequently, I'd probably look for a 40% premium on the salary, since I'd be working ~40% more.

It's pretty simple, if I like the job, and get enough personal time, I'll work whatever hours are required, but they better pony up, because I don't work for free.  (note that me choosing to go the extra mile because I'm treated well/like the job or people is a lot different than being forced to work extra)

bryan wrote re: How to handle the 'dreaded salary history' question
on Fri, Nov 3 2006 3:21 AM

for sure, the perks [ie. telecommute option] are a massive bonus! in fact, turned down a "nice" professional opportunity just this week based solely on the fact that it would impact on lifestyle, that being the telecommute would eat away at 1.5hrs of "my" time each day..

that's like missing out on a date with my wife... or giving up a sunset/sunrise surf- purely cos of time constraints.. as mastercard would say... "priceless" :D

Sahil Malik wrote re: How to handle the 'dreaded salary history' question
on Fri, Nov 3 2006 9:19 AM

Bryan - hey man can you send me a message thru www.winsmarts.com/contact.aspx? I have a rather curious question 4 u :-)

Sahil Malik wrote re: How to handle the 'dreaded salary history' question
on Fri, Nov 3 2006 9:20 AM

Eric - but what if it was a consulting company with clients all over the globe? You couldn't move close to each one of them, now could you? :-)

Eric Wise wrote re: How to handle the 'dreaded salary history' question
on Fri, Nov 3 2006 12:14 PM

Sahil- Nope, but I could negotiate an extended stay hotel and a certain allowance for my family travelling with me.

Sahil Malik wrote re: How to handle the 'dreaded salary history' question
on Fri, Nov 3 2006 1:17 PM

... right and if they didn't wanna negotiate? :)

Eric Wise wrote re: How to handle the 'dreaded salary history' question
on Fri, Nov 3 2006 4:37 PM

Their loss.  =)  I know my value to an organization, if they don't agree there can be no deal.

JuanBarbatos wrote re: How to handle the 'dreaded salary history' question
on Sat, Nov 4 2006 8:20 AM

All these responses and questions are interesting.....

Sahil, with your scenario in mind, of course it depends on the person. I have to say that I would consider it, 25k extra to do something I love. I think it would be interesting to work on a different project as well as different location every so often. As you might have guessed I am and single, so my guess would be that's the demographic you would have the most canidates from.

I'm not sure how many companies do this, but all the ones I have worked at have had raises that were based off ranges (ie 3% - 10% depending upon the review). On place you could get into trouble is by accepting something below what you normally would (even with assorted compensations). What could happen is you get a great review but all your raises will be off you base salary.

I guess I have been kind of lucky I have never really been drilled on this in any of my interviews.

michael eaton wrote Tech jobs and telecommuting in 2006, 2007 and beyond
on Tue, Nov 7 2006 10:39 AM

Tech jobs and telecommuting in 2006, 2007 and beyond

Sam Gallezzo wrote re: How to handle the 'dreaded salary history' question
on Fri, Dec 29 2006 9:23 AM

Most hiring managers are sleezy fucks that will do anything to make a profit.  Do your research on the position and go armed with the salary range.  If the employer tries to lowball you offer him a hand to shake and walk out.  Wait for the cock sucker in the parking lot and then kick his teeth in.