Negotiating Salary – Talking Salary Is a No No During Interviews

A colleague of mine was asking me about how to approach a potential new employer about their salary expectations, and the timing of the conversation. They were worried it might set the wrong impression or give the employer a negotiating edge if they discussed the salary too soon. My rule of thumb is to never lie to any employer about your salary history or salary expectations, but to avoid the discussion until you have nearly gotten the job.

In the past, I have been in the same situation, and have been pressured for a response to the tough questions on salary. My approach has been as follows.

1) My first response would be to try to defer the topic until later. Because we haven’t really gotten through the responsibilities of the job, nor the contributions I can make in the new position. The new job is somewhat different from the past job because the company’s market, product or industry are somewhat different than the past companies. Therefore the past salary history is not all that applicable. I would prefer to be paid in accordance with the market and the company’s hiring practices.

2) If put on the spot to respond during the interview, and they insist on knowing my previous salary, I mention the total value of what I expect for salary and all compensation. That includes cash, as well as benefits and other perks. I will mention holiday time, quality of life factors, and other things like pension and health plans. I also explain that what is most important to me is that the job offer is fair within the market rather than based on what I made in the past.

3) It is important for me to be aware before going into any interview what the standard salary range is for that position. I also want determine where my overall percentile would fall within that range. The vast majority of people are not at the top end of the salary range, so unless I know I have been a superstar, which I usually strive towards, then I wouldn’t recommend expecting the absolute maximum salary, unless I know I can explain why I am worth it. This is almost always confirmed by reference checks, and also, when starting the new job, it will be obvious if I am not in the 98th percentile. The goal is to be generous with your self evaluation but honest if you are not at the total superstar ranking.

4) Even if you had been making a lower than average salary before, possibly even well below the average for that job in that market, you should expect to be paid within that fair market range when you go to your next career opportunity. You may have one of many reasons for accepting a job at a lower salary than at your previous job. It doesn’t explain your value to the new company. The end analysis is that your value to the market is what the market is currently defining as the salary range for your talent, your level of performance and experience in the industry.

5) If you do give in and tell them your past salary, make sure you clearly express that you expect to be paid respectably, and you just don’t want to be taken advantage of. Explain what you do know about the job market at that time. Most employers will respect you for expressing your expectation for your reasonable salary. Just remember salary negotiation is not supposed to be an offensive situation where you are demanding. Remember to be clear in your negotiations but respectful in your dealings with the recruiting manager.

Honesty is imperative when doing interviews. Employers have many means to determine whether you’ve been honest with them in the hiring process. What is most important is to be clear about what you can contribute to the company first, and that you expect fairness in the hiring process.

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