For some reason, people get nervous when they see the salary question coming in a job interview explains Peter Decaprio. They feel that sharing their current or previous salary will hurt their chances of getting hired.
Most companies understand that they need to pay a competitive rate if they want top talent and this is why they ask about your current or previous salary.
It is best to answer the question upfront, by sharing your current or previous salary. That way you will save yourself from getting low-balled or wasting time negotiating for a rate that’s not realistic.
If you decide not to disclose your salary at this time, then the company may use job requirements and market data to calculate what salary they can offer you. They do this by considering whether you meet all their criteria and measure against the market rates in order to determine if they can afford working with you or if they need to hire someone who has more experience at a different price tag.
You also need to know that if given an offer letter afterwards, it will be contingent upon successful validation of your background check, references and verification of your salary.
Even if you don’t disclose your current or previous salary, the hiring manager will likely try to find out what it is by asking questions like:
1- “What are you earning now?”
2- “How much were you making in your last job?”
3- “What was your starting salary when you started working for ABC Company?”
4- “When was the last time you got a raise and by how much percentage?”
5- “If we hire you today, what range did we budget for your position and why do we think this is realistic?”
6- “Why should I pay more than that” (if they know the average rates of other positions) If giving an exact number makes you nervous, tell them “I believe I’m on the lower end of the salary range for similar jobs.” This will give them an opportunity to offer you more.
For some reason, women get even more irritated when asked about their salary history or current salary because they feel it’s sexist or someone is trying to take advantage of them. Some even go as far as avoiding this topic altogethe says Peter Decaprio.
It’s important to remember that unless you’re at a very senior level in your company (VP, GM) talking about money is almost always uncomfortable for everyone. And by sharing salaries openly, you can help ensure that people are paid fairly and equally.
Here are some tips:
1) Before You Go To the Interview
Do your research before going to the interview and be sure you know the market rate so that you can prepare and negotiate your offer.
2) How to Prepare For the Salary Question
Once you’ve done your research, it will be much easier to answer the question. Also, don’t wait for this final round of interviews before disclosing your salary. Since doing some quick math on a piece of paper could look as if you’re hiding something explains Peter Decaprio.
3) What To Do After You Get a Job Offer
Once you get an offer letter or verbal commitment from HR. Ask them for clarification about their range and how the salary is determined (by job function, location etc.). It’s also important to clearly understand all perks and benefits (bonus, vacation time, medical plans etc.) Recruiters and hiring managers don’t like to answer these questions in case they feel it is a waste of time. If you get an offer on the spot, there is very little chance that they will negotiate. They already spent too much time interviewing and if you want more money than what was in the offer letter. They may withdraw it in order to save their company expenses. Or give it to someone who would take it without negotiations.
4) When to Negotiate Salary
Negotiation is not only about salary but also about negotiation for your future career with your new employer. Such as: asking for a promotion within 6 months, training programs, special projects etc.
5) Never Discuss Your Current or Past Salary
During An Interview it’s best not to discuss your current or previous salary information. During the interviewing process says Peter Decaprio. This is because you can’t influence what your current employer will negotiate with future companies. And if they find out that you’re in negotiations, and then they may withhold this information from potential employers. And vice versa, when a new company discloses that they are in negotiations with most of their candidates. It could prevent you from being hired. Since sometimes your current company will offer to match the salary so you don’t leave.
You can’t tell what your salary will be until you know the position and job market. And it’s important to know that there is no shame in discussing salaries since this is how everyone gets paid. And if HR knows that people are not disclosing their salaries because they feel it’s uncomfortable. Then they will continue to ask about prior compensation as part of the interview process.