“What was your last salary?” – Answering this intrusive question is no less than a tightrope walk. It is intimidating and badgering to say the least. There are several cities and states across the world where questions on earning history are either banned or set to be banned any time soon. It should be enforced across the world. The reason is simple and clear: Judging a candidate’s worth based on earning history will create discrimination and perpetuate pay disparities. Here is the dilemma that the question stirs up - Dodging it could be the kiss of death whereas sharing the actual salary will erode the earning potential, especially if you are currently underpaid. It gives employers an upper hand in salary negotiations.
Why do they insist?
I’ve been job hunting for a while, and many hiring managers have tried to judge my capabilities based on my earning history. It's disappointing and frustrating. No law requires me to disclose my salary history to a prospective employer. But I’ve been compelled to divulge it over and over again, forcing myself to get stuck in a corner from where I cannot negotiate my way out. They leave no room for a polite refusal. Once I disclose how much I’ve been paid in the past, the pay package offers I receive will mostly be far from reasonable or almost the same as that of my previous paycheck.
Salary history is a private and confidential data. It is rude and inappropriate to compel candidates to disclose their salary history. Divulging the salary history will only harm your chances of getting a fair compensation. Once recruiters know what you’ve earned in the previous positions, they will low-ball their offers in no uncertain terms. I’ve been there before and have received less-rewarding offers multiple times. The disappointment grows manifold if you were underpaid in your previous job and was denied a reasonable incentive citing downsizing, budget cut, and so on. What if you are comfortable taking a step down in compensation for your next job? Most employers will shy away fearing you might jump-ship on receiving a prospective offer.
How to reply
Use of diplomacy is the right way to deal with a compensation trap. Stand up for yourself and give a polite reply. The question is, how to reply politely without spoiling your chance of getting a job? Here is how I reply without sounding defensive or shady: "I keep that information confidential, but the salary range I am looking for is…"
Extensive research is crucial to put your salary requirements out on the table. It helps back up your demand with your qualifications and experience. In other words, know your worth before stating your salary expectation. If you’ve already shared the numbers, a comprehensive research will help explain why you feel it was below the market standard for your position and experience.
Don't ask, don't tell
The much-needed demise of this cringe-inducing question will be highly applauded by candidates across the length and breadth of the country.