To tell or
not to tell a prospective employer how much you make: That is
the question.
With
apologies to William Shakespeare, this dilemma lacks a simple
solution. Many businesses demand to know applicants' latest pay
during early stages of their hiring processes. Recent salary history
exposes disconnects with titles listed on a résumé
and weeds out poor fits.
But
should you divulge every cent you earn? You risk being knocked
out of the running as overqualified -- or inexperienced. Should
you instead dodge premature pay queries? Then you risk being knocked
out of the running because you seem too secretive.
"There's
no way of knowing for sure if disclosing or withholding is the
best strategy," says Jack Chapman, author of "Negotiating
Your Salary: How to Make $1,000 a Minute," and a Wilmette,
Ill., career coach. "You're dealing with potential rejection
either way."
When
weighing what to do, experts say, it helps to take into account
the desired job's level, the duration of the vacancy, the extent
of rival contenders, the scarcity of your skills and your insights
about the opening's likely salary.
And
candid money talk with outside recruiters is almost always a good
idea. "Blowing off the compensation question creates bad
chemistry with the recruiter," cautions Patricia Cook, head
of an executive-search boutique in Bronxville, N.Y. Thirteen times
during her 22-year recruiting career, Ms. Cook has encountered
qualified prospects who refused to tell her their pay. She presented
the 12 women and one man to corporate clients. But none became
a finalist.
Before
baring your bucks to a recruiter, though, try to persuade him
to gauge your worth. You might ask, "What's the most money
that my skills would command in the marketplace?" If the
number falls short of your latest paycheck, you can provide solid
reasons why you're being paid more.
If
you appear relatively underpaid, describe hefty raises and bonuses
that you pocketed during boom times. Emphasize that bad business
conditions rather than your individual performance were to blame.
You
can also turn the tables on a nosey hiring manager. Inquire about
the budgeted salary range for the targeted spot. Say whether that
range matches your qualifications and personal needs. Express
eagerness to negotiate your next package once it's clear you're
the preferred pick. A good "postponing phrase speaks confidence
in being hired," Mr. Chapman's book suggests.
But
this ploy doesn't always work. A corporate trainer wanted to avoid
revealing his pay when he sought employment with a New York-area
information-services company in fall 2004. "I did try to
get around it by saying, 'I'm hoping for a fair offer,' "
the Long Island resident remembers. He also asked about the projected
pay range.
Ignoring
his query, the head of training insisted on learning his current
salary. He said he was paid about $114,000 a year. Offered $118,000,
he requested a slightly larger sum. The concern abruptly dropped
its offer. "We're not happy you asked for more money,"
one official said. The trainer now wonders whether he divulged
his compensation too soon.
Terrance
McDermott, a marketing manager at a Chicago financial-services
company, intends to provide a desired range rather than his precise
pay during future job hunts. "If the [actual] number is going
to take me out of the running, I'm going to dance around it as
best I can," he explains.
While
unemployed last spring, Mr. McDermott told an Internet business
the amount he earned at his prior employer, a mutual-fund firm.
"That's a nonstarter for us," snapped the hiring manager,
cutting short his interview. Mr. McDermott later discovered he
had made 15% more than she was willing to offer.
It's
tempting to exaggerate your pay package. Numerous job seekers
inflate the figure, typically by including their bonus target
and the value of perquisites.
Bill
Davidson did the opposite to land job interviews during a difficult
job market. In 2004, the former information-technology director
applied to be a project manager at Postini in San Carlos, Calif.
He informed the email-filtering concern that his last cash compensation
totaled about $100,000. The real number was $140,000.
Mr.
Davidson accepted the $88,000 post. He says he admitted his deception
a month after he joined Postini -- without repercussions.
As
a rule, though, you should never fib your way into a new workplace.
"People will pull offers for a clear lie about pay,"
warns Lee E. Miller, co-host of "Your CareerDoctors.com,"
an Internet radio show. Some companies require final pay stubs
or income-tax forms to verify salary.
Should
pay-history queries be outlawed? The practice "is unfair
on its face -- and has the effect of prolonging discrimination
due to race, gender and age," contends Ted Turnasella, a
compensation consultant in West Islip, N.Y. He is lobbying state
lawmakers to introduce a bill that would bar employers from posing
the question during interviews or on job applications.
Sounds
like a good idea to me.
