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February 27, 2009

Disclosing your salary history puts you behind before negotiations begin


Syndicated columnist

Q: You advise that job candidates should not divulge their salary history to an employer. I'm a recruiter, and I think that's the worst advice you could give a prospective candidate. When it's time to fill out the application, they must disclose their current or past pay anyway, so why withhold it? Besides, playing the money game just wastes time. Salary history is needed to determine whether a person's salary fits the employer's salary range. It has nothing to do with the value of the candidate, as you suggest. What do you say now?

NICK'S REPLY: I don't agree with you, and nary a reader who has written to me about this does. There is no law that says anyone "must disclose their current or past pay" on a job application.

This is an old game for many employers who use salary history to determine (and limit) a job offer. But the interview and selection process is all about determining the value of a candidate. If an employer can't figure out the candidate's value with respect to the job without relying on the person's salary history, then the employer needs a different kind of help.

Because the employer invites the candidate, the employer should provide a salary range so the candidate can decide whether it's worth interviewing for the job. What does it matter what the person makes now or made last year? What matters is whether the person can do the job and is willing to do it for the stated range, and what value the employer places on the work the person can do.

When you're shopping for a car, the salesman tells you the asking price to start the negotiations. He doesn't ask to see your checkbook balance so he can set the price accordingly.

What you're worrying about is a bad old habit and a sales technique, not a necessary step in hiring anyone. It doesn't matter that lots of companies do it. It's wrong, and it reveals a lack of sophistication on the part of the employer.

THE HEADHUNTER TIP:

Competitive job hunters lose.

Remember when Harrison Ford faced a frighteningly talented swordsman in one of the Indiana Jones movies? He declined to compete. Instead, Ford changed the rules of engagement. He whipped out his sidearm and blew the sucker away. The lesson? Never compete by using common tools when you're job hunting; you'll probably lose.

In today's world of resume scanners, key words and database-driven hiring, everyone is using the same weapon: a resume. They are competing with others on the same level, thereby diminishing their chances of success.

Do you want the job? Then rise above the common competition and use the best tools you can. Don't send a piece of paper like everyone else does. Marshal your talents and sidestep your way past the human resources equipment. Blow away the competition. Go straight to the manager who needs your help and talk directly. I didn't say it was easy.

Copyright 2009. Distributed by Universal Press Syndicate

Nick Corcodilos is author of "Ask The Headhunter: Reinventing the Interview to Win the Job" and the host of www.asktheheadhunter.com. He can be reached by e-mail at seattle@asktheheadhunter.com or at North Bridge Group, P.O. Box 600, Lebanon, NJ 08833. Sorry, no personal replies.

Read more: Ask the Headhunter , Job hunt , Salary and benefits

2 Comments

Hi Nick,

Thank you for taking a stand for NOT requiring candidates to disclose their salary history. It's insulting and reduces the conversation from "What do you offer?" to "How cheaply can I get you?"

I have been recruiting for, well, a really long time, and this is exactly why business leaders want NOTHING to do with HR and their internal recruiters. They think they're protecting the companies assets when what they're really doing is offending great candidates. This is why so many companies hire headhunters to do their heavy lifting v. utilizing their internal recruiters. And, quite frankly, it hacks me off when I hear this sort of archaic puffery about "...wasting time playing the money game." The only one wasting time (and their recruiting brands reputation) and playing games is old skool recruiter-types who value a couple bucks over the future. The accomplishments of a successful worker and their future potential is the only conversation worth having until it is absolutely clear what the candidate can do for my company and the expectations we have been discussed based upon this candidate. Only then is it time to pencil out numbers and have a mature, educated discussion where everyone participates fully in the total compensation package.

Now this does not mean that my job application does not request salary history. It simply means that candidates can choose to disclose, or not, without penalty. It is my responsibility to ensure everyone is paid fairly regardless of the candidates’ salary history or negotiation skills. By going on the cheap, disparity is created costing more in the long run. But that's for another conversation.

I bet old skool recruiters have a much higher decline and turnover rate than those of us who look to hire the best candidates - not the cheapest.

Keep on keepin’ on,

Christy Miller
Impinj, Inc. & Co-founder of www.seattlejobs.org

For the record, I had 2 declines and

Bravo to Nick and Christy.

Employers know the salary range that applies to the the job description they have posted. I do not know of anyone in the world who does not know that when they apply for or interview for a job. Furthermore, what does salary history have to do with anything? I do not think my salary history has anything to do with a job I am currently applying for.

A few months back, I posted an "entry level" job before the wage was approved. Once I got an approved wage, I updated the job posting. I went from hundreds of applicants who were applying for anything and everything to about 10 who were interested and who had the right skills, knowledge, and abilities for the position.

The time that is wasted by employeres playing this stupid game of trying to hire the best person for the least amount of money is an insult to everyone. Just post the salary range! Quit wasting everyones time.

My last rant is that I cannot believe what I am seeing in the job market right now. Employers are taking full advantage of...no they are abusing the current ecenomic issues. I have seen jobs that paid 60k-80k just 18 months ago that are now posted for 20k-30k or less. What the heck is that about? How could any employer expect to pay people at or around poverty level while the company is still extremely profitable? Greed has become more important than taking care of employees who want to dedicate their careers to a company.

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