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Question: I work for a firm that is notoriously cheap when it comes to paying its employees. I’m now interviewing for a job at another company. When I’m asked about my current salary, should I tell the truth or give the amount that I know I’m really worth in the job market?

Our Answer: Lie through your teeth.

Just kidding. While we sympathize with the position you’re in, being underpaid by one firm doesn’t justify lying to another, especially when the sole purpose of the misrepresentation is to manipulate the company into paying you more. To lie like that would be as unethical as your prospective employer misleading you about, say, the period of time before you’ll be eligible for a raise.

Ethics aside, lying is a bad idea because you run the risk of getting caught. And since falsifying information on a job application is often grounds for dismissal, that’s a risk to avoid at all costs. Imagine losing your job for lying, then being asked in subsequent interviews why you left your last position.

So tell the truth - or try to deflect the question. But either way, make a case for why you should be paid the salary you want. Point out what people with your skills make elsewhere. Mention that you’re changing jobs because you feel you’re underpaid. And most important, explain what makes you worth the money. After all, what matters to your prospective boss is not what you feel you’re entitled to but how hard you’re willing to work and what you’re prepared to deliver. So tell him!

Questions? Email Money Magazine’s ethicists – authors of the upcoming book “Isn’t It Their Turn to Pick Up the Check?” (Free Press) – at FlemingandSchwarz@right-thing.net.

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Posted 9:47 am 63 Comments comment | Add a comment

If the current company is really that notorious for underpaying thier employees, then chances are, places he interviews at already know that.

Posted By R, Franklin, TN : June 27, 2008 6:02 pm

For all of you who think that a prospective employer cannot find out about what you are making, click this: http://www.theworknumber.com. My company belongs to this, and when a prospective employer wants to find out about you, they can.

Posted By Tom, Point Pleasant, NJ : May 23, 2008 2:08 pm

I am recruiter and the way we tell our candidates to handle this is to say: “I am looking for the most competitive offer avialable.” If a company asks what they are currently making, never lie (you may be asked to provide pay check stubs as back up documentation), but feel free to say something along the lines of: “Well, currently I am making X, however, I am looking to make something closer to y.” And whatever your “y” is, aim high and be ready to defend it. You can always revise lower if the number is too high, you can’t revise up if the number is much lower than they expected.

Posted By Ashley New York, NY : April 14, 2008 3:06 pm

If you ask me, it’s not really fair for a potential employer to ask someone interviewing for their current salary. As others below have said, the only real reason for them to ask would be so they could somehow gauge what they would offer you.

With that said, I don’t think it’s in anyone’s best interests to either (a) lie about it or (b) avoid the question altogether.

Forget about what’s ethical. I’m all for the “pay yourself first” attitude and doing what benefits you most in a situation like this. The simple fact is that a potential employer can and probably will do a fact check. How would you like to get that nice cushy job making 30% more than your previous position only to get canned a few weeks down the line because that’s when your employer got around to verifying some of your facts (I’ve seen this happen).

My point about it not being worth it to avoid the question completely is simply this: let’s face it. There are probably at least a few similarly qualified candidates that are competing for the same position as you. They’ll most likely provide the interviewer with an answer. Why should he/she consider someone who went out of their way to avoid a direct question?

Posted By Eric, NY, NY : April 3, 2008 9:22 pm

First, I wouldn’t expect these online coaches to advocate lying.

1) firms don’t give out past salary info - too scared of being sued

2) what your current salary at your job is - well that is not relevant. The question is what is the new firm willing to pay based on your skills and experience. I mean if I go to a grocery store to buy a gallon of milk, do they ask me what I paid for at another grocery store. Totally irrelevant and the question should not be asked.

Here are the current list of hoops you have to jump thru:
1) personality test (sometimes)
2) intelligence test (sometimes)
3) reference check
4) w-2 verification
5) credit check
6) urinalysis
7) criminal check
8) interview with multiple people (who have not been trained to interview)
9) case study check (consulting)
10) education verification

I mean how far is this going to go. Drugs / Criminality / Education all good. Obviously people should meet interviewees. The rest of this is an invasion of privacy and the process is demeaning. And I have nothing to hide!

Posted By Martin Van Buren, NYC NY : April 2, 2008 12:05 pm

Lie, lie and lie some more. Hiring managers already have a profile of who they want to hire and how much they want to pay. If you low ball yourself, it’s your fault. They are in no way trying to help you and in fact are trying to get a deal. People who are hiring can claim all they want about trying to be honest and forthright in the process, but in fact they are doing a business transaction like everyone else. Find the best deal and take it. Lie all you have to in order to get what you deserve.

Posted By Mia - Charlotte, NC : February 17, 2008 11:08 pm

Sorry Jigar, that is not going to happen. Tell me what employer is going to give up salary information to a prospective employee? Answer: NONE! It sure sounded good though.

Posted By Bill Phoenix AZ : February 17, 2008 10:46 am

Don’t lie. Although you probably won’t get caught, it’s an ethics issue and if you do get caught it won’t look good on you.

Now, you can research your salary and negotiate with your employer after you get an offer, basing it on your credentials — but try not to even talk salary. Just say “I would like a competitive salary”.

Posted By John, Atlanta, GA : February 16, 2008 4:25 pm

One time I went for a job interview, and it was pretty clear that they were going to hire me. Toward the end of the interview, the interviewer said “and the salary is X dollars. Is that acceptable?” I almost fell off my chair, and obviously looked it. He asked what was wrong, and I was completely honest… I told him that was more than twice as much as I was making. He laughed, and said “don’t ever do that again. Don’t ever admit something like that in a job interview.” I said that I’m sorry, I was just completely taken aback by the high salary being offered. He replied that I shouldn’t be… he wasn’t overpaying me, my current job was underpaying me. That was 20 years ago, and it’s always stuck with me. I haven’t had cause to lie about my salary for an interview since, but in the letter-writer’s position, I might. When you’re working for a cheapskate, that shouldn’t reflect badly on you and ruin your future prospects. You should ask to be paid what the job is worth, even if you have to lie.

Posted By LR, New York, NY : February 15, 2008 6:22 pm

THE WAY TO HANDLE THIS: Ask the new company to first state the salary of every one in the department, before you give your current salary to them.

This should then let you state, that one should arrive at the new salary based on what you bring to the table and their needs.

Posted By Jigar, NY : February 15, 2008 5:11 pm

Don’t tell them how much you make/want/expect. (This can only hurt you.) If you say a number too high, you won’t get an offer, and if you say a number too low you’ll get less than they’re willing to pay.

When the new company asks you what you’re currently making, ask them why they want to know. When they mumble out some BS about wanting to make you a fair offer in line with your expectations, tell them that you’re confident that they’ll make you a competitive offer commensurate with your skills and abilities.

Don’t forget, you’re always better off making the other side spit out a number first. (They sure haven’t forgotten - this is why they ask you.)

Posted By Bob, Chicago, IL : February 15, 2008 11:57 am

About a year ago, I was fed up with my employer due to low pay and because they kept promising a promotion, but the budget just never seemed to allow for it.

I went to a direct competitor, told them up front how much I was making and that I felt I was worth much more based on my accomplishments.

They offered me a 30% raise right off the bat. The insurance was practically the same, and the 401k was out of this world - you contribute 6% of your pay and they contribute 9%.

Needless to say, I took the offer!

Posted By CO, Richmond VA : December 27, 2007 10:45 pm

Lie, Lie, Lie, Lie, Lie! It is worth the risk.

Posted By Doug, NC : December 18, 2007 11:36 am

What if your salary includes a bonus opportunity that your company treats as part of your salary? If interviewing, do you give your base salary or the total of your salary plus your bonus opportunity (in my case, an additional 10%)? I’ve always been curious about how to handle this.

Posted By Julia, Lawrence, KS : November 7, 2007 9:35 am

AJ in Philly has this one exactly right. What you make now might be irrelevant, and is none of a prospective employer’s business. It’s what you will work for that matters, and all that matters. Once you come in at a low salary, future raises will be based on that lower figure. Almost all of the time, if you are not aggressive when negotiating salary, you will regret it later.

Companies want to hire you for as little as possible, and you need to maximize what you make. Anyone that won’t pay you what you want doesn’t deserve you. Keep looking. Settling for less is a disservice to you and your family.

Posted By Christian M., Fairfax, VA : October 29, 2007 12:38 pm

To LM of Broomfield, CT - I’m currently in the same exact situation as you, looking for a job closer to home. I might have scared off 2 prospective companies when I told them my current salary, but that’s OK with me. If they’re not willing to come close to what I’m making, why waste time with an interview. I’ve been to a few interviews, and they typically ask what salary am I looking for, not what’s your current salary. I would tell them my current salary and then say that my top priority is working closer to home. I then tell them that if an offer is made, I will “look” at the total package, meaning health/dental benefits, 401(k), profit sharing, etc. I would be happy to find a job closer to home making the same that I’m making now. If the offer is lower, maybe you can negotiate more paid vacation days. Hope it helps and good luck with your job search.

Posted By MSL-Voorhees, NJ : October 26, 2007 1:18 pm

Asking what your salary was with a previous employer is not nearly as innocous as asking what your current salary expectations are. The latter is a fair question. The former is not.

It is not any business of a prospective employer what your salary was with a previous employer. The only reason a prospective employer would even ask that question would be to see if you could be low-balled on a job offer.

If I was asked that question, I would offer to answer it only if the employer agreed to divulge what it was paying the last person who held the job for which I was interviewing. At least we would both be on equal footing at that point.

Posted By David, Seattle, WA : October 25, 2007 8:02 pm

He who answers this question first will lose.

My response is always something in the neighborhood of what is your salary range, or what are you expecting to pay? Always find out their limits first.

This is a high stakes game that an employee cannot afford to lose.

Posted By Ed Spinefast, Truckee, California : October 25, 2007 4:05 pm

Here in the Detroit Metro area, I have noticed most employers now ask for your current salary expectations. To me this says they are window shopping, and if your expectation is out of their range, they will just move on to someone who fits the wage scale, worth it or not!!

Posted By SV-Detroit, MI : October 25, 2007 2:40 pm

To LM in Broomfield - it’s ok to be honest about your current salary, but I’d recommend letting them know you’re willing to negotiate for the benefit of having a job closer to home. Ultimately that’s what you want - so if you’re willing to take a bit of a pay cut to do it, let them know that. For some, it’s not all about the money.

Posted By Erica, FL : October 25, 2007 1:42 pm

If the value of a candidate’s skills/abilities have outpaced his
current employer’s willingness to pay, or the employee just happens to work for a cheap company that is unwilling to pay competitively, then when he/she asked about salary history he/she should tactically turn the question to the prospective employer by saying: “A person wants to be compensated based on the skills/abilities he brings to the
role and the value of those skills to the his new organization; not as determined from his current salary or simply from his years of experience. If that were the case, anybody currently making target
salary X or who has Y years of experience would do. But you’re not looking for an “X” or “Y” kind of person — you are looking for a key set of skills that have value to you in this particular role. So what is the value of this role to you?”

This is exactly what I said when I interviewed for my current job and it worked like a charm. The interviewer’s response was: “We’re going to make you an offer - what do you want?”…..and I landed a $35k raise, better health insurance, better 401k, and better pension.

I didn’t lie one bit; but I did keep the employer focused on the right value perspective without having to answer the ‘what’s your current salary’ question.

Posted By RA in Houston, TX : October 25, 2007 1:18 pm

It’s kind of shocking to read these comments. The common feeling is that it is ok to lie to a prospective employer. What is clear is that most of the posters have never had the responsibility of hiring employees. As the owner of a small business who is faced with hiring of employees, there is nothing more difficult than trying to find the right person to fit in. Lying in the interview process is a gamble. And if you get caught, the repercussions are significant for both the employee, the employer and the rest of the employees.

Posted By Jose, tampa florida : October 25, 2007 9:18 am

I interviewed for a company and was offered 40k. I was making 30k at the time. I then told the hiring manager that I was making 42k and couldn’t take a pay cut. I got the 42k I would say that your advice was poor on this one. you can say things like I am looking for $xx - $xx so I can make comparable money, but I look forward to working for a high energy company as yours is. 1 is comparable to 1 million. also, plan ahead. inflate your salary on credit applications. thats’ where some of your credit info comes from. if pushed directly for salary, say that you are asked not to discuss exact pay and benefits with competitors and hope that they understand that you will give them the same respect if hired.

Posted By steve columbus ohio : October 25, 2007 8:58 am

I work in HR fpr a Fortune 500 Company and was also recently involved in a job search myself. I find it interesting that the prevailing opinion among many of you is that HR is out to get people. If a company has a job opening, they want the best, most loyal, most talented, most engaged person filling it. By screwing that person from day one they set themselves up to invest time, effort and energy in that person just to see them leave for a competitor with a bigger budget. Yes, there are budgets for positions but there’s always wiggle room. NEVER accept a company’s first offer.

As for the issue of lying- I interviewed a few weeks back with a major insurance and financial services firm in NYC and their application clearly stated that, as part of their background check they would require you to produce your most recent paystub. Failure to do so would mean no longer being considered for the job. In other words, unless you can get your payroll department to fudge your least check so it looks higher, any recruiter with basic math skills is going to be able to tell you lied….then it’s back to the unemployment lines!

Posted By JT, Bergen County, NJ : October 25, 2007 8:40 am

I’m currently seeking a new job mainly because of a low salary, but I haven’t brought it up during interviews because I think they might interpret it as if I’m “bitter” and then view it as a negative. Should I be up front on that issue when interviewing for a new position?

Posted By AB, VA : October 25, 2007 7:57 am

If you do bring up the fact that you feel you’re underpaid at your current position, will the interviewer interpret that as “bitter”? I’m going through the process of interviewing at several companies and although one of the biggest reasons I’m looking for a new job is to find a better salary, I haven’t brought that up during the interview process. I have, however, had to turn down one job offer because the salary wasn’t sufficient.

Posted By AB, Virginia : October 25, 2007 7:52 am

I think the original advice was partially correct and on the right track. It may be best to give your current salary and explain you are looking to now earn a market salary in the range of ($xxx - $xxx).

As an employer who asks this question, it tells me a lot about you. If you tell me that is good (builds trust), if it’s low and you tell me that is good too. If you tell me why you want to earn more and can justify it then I am much more inclined to hire you “IF” I can afford it. Remember, employers have budgets and we cannot generally afford expensive employees (most industries); but we can when they will obviously help us earn more money or save more money.

If you fit in the “earn more” category explain why and go for it!

Posted By MW, San Francisco CA : October 25, 2007 3:39 am

Tell the truth about your salary but do include your bonuses, car allowances, cell phone allowance and all you are entitled. My current employer, one of the most admired companies, verified all. The also asked how I calculated my prorated bonuses.

Nine years later and double the salary I began at, it would not have been worth fudging anything.

Posted By Kathy, Scottsdale, AZ : October 25, 2007 2:55 am

Tell them what you want on your resume. They are buying your services and the price they pay should be what you are worth to them and have no bearing on what you currently make.

If you take a low offer, you’re just screwing yourself long term because any future pay raise will be based on going in at that lower salary.

Posted By AJ Philly, PA : October 25, 2007 1:19 am

I aggree

Posted By pujarengkono : October 25, 2007 1:09 am

Tell a different truth. I just add up everything I get, salary, bonus, overtime, overseas differential, overseas housing, 401 K match, hardship pay, everything to get an amount. That total is what I say my current compensation is. Then I negotiate for all the above but from a much higher base. But the key is to have good research first.

Heck no one ever checks anyway. If they really want you, they will pay. If not, just wait.

Posted By Steve Bangalore India : October 25, 2007 12:17 am

“Ask for the most the job offers. Believe me, you will sleep better at night having gotten what you want and especially when the work get more difficult or stressful.” - Posted By KWing, Hackensack, NJ

People should NEVER settle for less.

If you are not willing to fight for fair compensation, you should not expect to get it from the company. If you ask for the largest amount of money, you just may get it. If not, the company can renegotiate and still offer you more than what you are making.

Remember that raises are based off of what a person starts off making. If you start off making less, you will always be behind the person who started making more if the percentages in raises are the same. People have become too scared to stand up for themselves. These people complain to friends, family, and co-workers but never talk to the people who have the power to make changes. As time goes on, these people have nervous breakdowns, all because they didn’t want to rock the boat.

When you settle for less, you should expect less.

Posted By Yadgyu, Harkeyville, TX : October 24, 2007 8:55 pm

They can only find out your current salary if you sign a waiver or give your current HR permission to divulge that information.

I say lie as long as your represent what you think your true worth is. In my position I see lots of people brought in at levels and pays that aren’t commensurate with their skills and talents; why shouldn’t you be one of them?

Posted By Ryan, Boston : October 24, 2007 8:22 pm

Having read some of these comments, I noticed people take different stances based on where they are from. Im generalizing here, but people who don’t work near big metro areas play the “honest” view, where as people who do live near big metro areas say to ask for most regardless of honest/dishonest practices. To the people who talk about an honest job, tell that to the NJ,NY,CA governments who levy the HIGHEST PROPERTY TAXES in the nation. I live in NJ and it’s ridiculous the fleecing that goes on. I would say ask for the most money possible just to survive cost of living! There should be an option on job applications that says “why are u looking for a new job?” one reason being “because I’m being fleeced by government”

kudos!

Posted By Anonymous : October 24, 2007 6:13 pm

Your comment made me laugh. ‘To lie like that would be as unethical as your prospective employer misleading you about…the period of time before you’ll be eligible for a raise.’

OK, lets see, approximately 30% - 50% of employers DO lie about that. Wake up!

Posted By Jules, St. george Utah : October 24, 2007 5:39 pm

If you disclose your salary requirements on your resume or cover letter, the question will probably never be asked.

Posted By Jim Seattle, WA : October 24, 2007 4:53 pm

Some of these comments reveal that corruption in business is so epidemic that it has become an expectation. If you know you are interviewing to work with corrupt people, look elsewhere — life is too short to settle for that crap. On the other hand, if you have hope you might be working for an honest organization, don’t sully that by being dishonest with them before you even get the job.

That said, honesty and full disclosure aren’t precisely the same thing. If you occasionally got an under the table bonus, or even just uncommonly good swag, you might use a line like, “some of my compensation was off the books, and that is definitely a situation I want to change as I move to a new position.” If that falls too far in the gray area, a nice straightforward approach to something like the initial scenario wuld be, “my salary was [actual salary], but that is a large part of why I cannot work with that organization anymore. I believe [desired salary] is fair compensation for the quality and quantity of work I do, and it would take [something between desired salary and absolute minimum tolerable salary] to insure loyalty and keen focus from me.”

Posted By Demonweed : October 24, 2007 4:05 pm

It’s funny this article is here because I’m in the process of changing jobs.

Don’t give out current salary. Don’t fill out that portion of the application. Just discuss ranges when asked.

First, I say salary has no bearing on the job or even performance itself. People often believe that and yet a CEO can drive a company to the ground and get a $20million severance package! Knowing this, you should ask for the maximum the job will offer. Usually a recruiter/HR will tell u it before hand before going through interview process.

Also, if you’re worried about them finding out and they find out what you were being paid, don’t worry. HR has better things to do. Plus, guess what people are paid more than you either way! Like the CEO! They want to pay you to stay! Otherwise, you can’t do your job if you’re worried about cost of living, etc. Think about it, they want u to focus on the work instead of how much you’re not being paid at your job so they will pay you for what you ask! Ask for the most the job offers. Believe me, you will sleep better at night having gotten what you want and especially when the work get more difficult or stressful.

Also, know the job you’re applying for. It may pay very well, but the hours might be long and the work difficult. It’s may not be worth an arm and leg. It’s really up to you to ask the questions!

One important question is Who you are reporting to. It may be you come on board, they didn’t tell you have to report to 3 managers!

Posted By KWing, Hackensack, NJ : October 24, 2007 3:34 pm

I was honest(stated only my base salary) and got a 6k hike in my base salary, then I included all the benefits into my base salary and got a 12k hike.

Posted By John,Reston VA : October 24, 2007 3:27 pm

Just ask them to look up a job title on http://www.salary.com for a given Zip code and then you both know the range. If they are looking to low-ball you will never hear from them again. Also switching from non-profit (with all the great benefits and sometimes low pay but 40 hr work week), to industry (high pay with terrible benefits and vacation if any with a required 50+ work week) is an apples to oranges comparison. Many times you tell HR the benefits you have and they act like you are lying as they cannot believe how much they are getting hosed. Then throw in a commute with or without public transportation and then you really see the difference. Driving until you can afford a house is not just happening in California. Joliet to DT Chicago is a reality due to Cook County taxes and traffic congestion.

Posted By Adam Schiiler Joliet, Il : October 24, 2007 3:24 pm

It is irrelevant to discuss your current pay with a recruiter for a prospective position. All they need to know is what you are willing to accept. The only reason a company wants to know what you currently make is so that they can pigeon hole you into making the same amount or blow you off because you aren’t in the range they wish to pay.
What you make is no business of the new employer. And recruiters are like used car salespeople.

Posted By Pat, Centennial, CO : October 24, 2007 3:11 pm

It bothers me that the writers assume that it’s OK for an employer to ask this question and expect an answer, without suggesting that there should be symmetry: the employer should disclose what it pays to people in comparable positions, or what it paid to the last holder of the position. Employers ask this to gain a negotiating advantage. The fair thing would be either you both disclose info, or neither does.

Posted By John Tiemstra, Grand Rapids, MI : October 24, 2007 3:10 pm

Its not just salary but total compensation, which includes retirement and health benefits.

If you get a nice fat raise, but the health plan has a $2,000 deductibe, a 30% coinsurance with ZERO out of pocket maximums, well, you didnt get a big fat raise.

Assuming of course, you had great insurance to begin with

Posted By John, Buffalo NY : October 24, 2007 3:02 pm

If the offer is not what you want, counter or don’t accept the offer. If money is the only reason to take the job, you won’t be there long anyway.

Posted By JR, Denver, CO : October 24, 2007 2:49 pm

The interviewing company has no right to this information. I never give this information on a job application or during an interview. If they don’t want me because I won’t play by those rules, then it’s probably not somewhere I’d like to work.

Posted By Eric, Dallas, TX : October 24, 2007 2:47 pm

Tell the truth, if asked.

Tell the future employer what you’re looking for, within a range.

Remember, you can always turn down their offer.

Posted By Spec Boy, Philadelphia, PA : October 24, 2007 2:47 pm

I’ve found that many if not most prospective employers use the “current salary” as a filter to determine if you “fit” within their budgetary range.

As such, I’ve found that by stating your current (or soon to be current salary including an upcoming raise/cost of living adjustment within the next 90 days or less), then adding that this is less than you made with the company you worked for before your current employer, that usually (but not always) the prospective employer will go with the higher salary number. The next question that they will usually ask is what % above this higher figure would I consider? They will also ask if your current employer “counteroffers”… I tell the truth on this one and say: “no, it is not my company’s policy to counteroffer an employee who has been offered a higher salary position elsewhere”.

But many of you are right, HR and the hiring manager typically have a set % above your current salary as a target and will use this against you. If you say that you need 20% above your current salary, they will write you off (depending on the position, industry, if this is a relocation, and salary level of course) even though it may be within the pay-range of the new position. Typically, anything more than 10% to 15% above your current base salary is bound to raise eyebrows at the very least.

Posted By tgun minneapolis mn : October 24, 2007 2:45 pm

I tend to agree with the honesty first policy, but I have slightly different problem - maybe folks can help.

I make a pretty competitive salary for the region I’m in, BUT, I’m also commuting a good distance.

I would love to find a job closer to home, but when asked my current salary, I’ve had two replies so far that claim I make MORE than what their range is for a comparable position and they basically drop it (and the interviewing) right there.

How do I not SCARE potential employers off?

I am willing to make less for a better quality of life!

Posted By LM, Broomfield CO : October 24, 2007 2:45 pm

“My current salary? — its $XX — which as you can see is one of the major reasons I am looking to change positions. I have a rough idea of what my colleagues are making and I know I am well below the average in pay and that I am well above average in performance.”

Posted By Doug Tucson AZ : October 24, 2007 2:24 pm

American companies are out to take the worker for everything they can. They’ll ax you in a heartbeat so get what you can going in the door.

Posted By Steve Ashland Virgina : October 24, 2007 2:21 pm

Tell them what you are looking to make, and not what you are currently make. It’s none of their business what you currently make anyhow. Some companies, especially large corporations, will use your current salary against you and base their offer on your current salary.

Posted By Luis, Howell NJ : October 24, 2007 2:19 pm

To all the people who need to lie in order to succeed… You might as well go into the ponzi industry, or perhaps spam? What’s the difference once you have compromised yourself?

Posted By Sam Houston, Eugene OR : October 24, 2007 2:02 pm

Complete honesty is the best policy. For my recent job change, my new employer performed an extensive background check that included salary/bonus confirmation for several years. I work in the IT industry and was surprised to see this much background research done, particularly since this job is not a high level leadership position.

Posted By Tom, Durham, North Carolina : October 24, 2007 2:01 pm

The advice in the article is completely wrong. First, you don’t need to answer that question at all. You just say I am looking for $X Salary and if it is in the new company’s budget then the interviewer shouldn’t say anymore. If what you say is over budget they will say something like we need your current salary for our records. Then say the range I am loking for is $X plus or minus 10%. Then that should satisfy them.

Posted By Dave, Portland, OR : October 24, 2007 1:56 pm

I am headhunter with DeWinter Associates, a regional Finance & Accounting search firm based in the Bay Area. I’ve been recruiting for the past seven years and have seen this situation many times over with clients and candidates.

In any business, ethics and integrity is critical to long term success ~ the comments thus far seem to indicate that misrepresenting your current compensation is both part of the game and standard practice. I disagree and believe there is a better way to deal with the situation.

To address a few of the previous comments:
a) Salary is not confidential, it’s part of any interview process. Whether in the initial phone call, interviews or on the application. Avoiding the issue too often creates the perception that someone is 1) underpaid and bitter or 2) seeking compensation beyond what is reasonable or 3) overqualified or too expensive for the opportunity.
b) Fudging your salary by 10-15% is still lying.
c) Telling them that you “make market” creates the same perception as not telling them anything.
d) It’s not that hard for a perspective employer to find out your current salary, business communities are small and many times very familiar.

You should not, especially considering today’s robust job market, just take what you can get. And I’m a firm believer that companies will attempt to attract the best talented people for the lowest salary that will keep them on board (at least public companies).

There are inherent competing interests when it comes to salary negotiations; however, lying is not the answer, ethically or effectively, to secure your compensation goals.

Competing offers are your best and most compelling asset when negotiating a salary. Even the perception of a competing offer can be convincing enough attract better offers.

If you are someone that is underpaid, then a competing offer is critical to securing the appropriate compensation. Human Resources will forever look at current compensation as a guideline for potential offers, however, competing offers are a more dynamic data point that both Human Resources and hiring managers cannot ignore.

Posted By Josh Fisher, San Francisco, CA : October 24, 2007 1:52 pm

Companies do share past salary information. Also, many companies are now requiring background checks - and they do validate employment and salary information.

Posted By RFC, Detroit, MI : October 24, 2007 1:19 pm

I once had a candidate who disclosed her previous salary — at more than 30% below market. I appreciated her candor and made sure her offer was based on current market rate. Why penalize her because her previous employer was cheap? Paying her the market rate was the right thing to do, for the company and for the candidate. She is currently one of the most energetic and proficient contributor in our organization.

Posted By AT, San Jose, CA : October 24, 2007 12:47 pm

Salary is confidential. The prospective company will never know how much you were getting paid. Don’t overinflate, but keep it about 10-15% upside for their counteroffer. Worked like a charm for me.

Posted By CFA : October 24, 2007 11:42 am

I completely disagree. Its really not a prospective employers right to know what you’re currently paid.

Employers typically ask this question for two reasons: its one way, albeit not a good one, to get a sense of a prospective employees level of responsibility; and its a way to ensure any salary offer they provide is ‘within a reasonable range’ - not too low nor too high.

However, your real value is tied to how much a prospective new employer needs your skills, experience and background; the scope of responsibility of the job, and the scarcity of your skillset within a given industry/geographic area.

I would do everything possible to reposition the discussion around the value of your skills & experience to the new employer, current market rates for similar skills in your area, and frankly, be very, very hesitant to provide previous salary information. Several ways to turn this question around include: asking what has been budgeted for the position, asking what the company pays others in a similar role, asking about the compensation range and providing national or regional data on what other companies are paying for like-skills.

If a prospective employer wont respond to any of your questions about salary; and continues to ask you about your current salary; you might reconsider if this is a company/organizaion you really want to work for. Salary negotiations can be a critical insight into how a company truly values its employees, and an indicator of how they will treat you in the future.

Your goal during during compensation negotiations is to ensure you obtain a compensation package you can live with (so you can pay your bills, save and enjoy life a bit…), you get the maximum value for your skills and experience, and both you and the company feel good about the negotiations and outcome - now you work for them, so you’ll want to end compensation negotiations with good feelings all around. Good luck!!

Posted By ABC, Chicago, IL : October 24, 2007 11:33 am

This is the WORST bit of career advice EVER.

Posted By Anonymous : October 24, 2007 11:28 am

As a former Executive Recruiter, you definitely DO NOT want to lie about your salary. I had a situation where a candidate overstated their current salary and when the new employer performed their due diligence, they retracted their offer. Not good for the candidate and/or the recruiter.

A good company will pay you a market rate, regardless of your current salary. I had honest candidates who got extremely competitive increases (sometimes $20k+) in their new job offers.

Posted By Chris, Naperville, IL : October 24, 2007 11:16 am

Don’t list your current salary on your resume or application, but when asked, LIE, LIE, LIE.

Posted By LM, Atlanta, GA : October 24, 2007 11:11 am

Tell them that you make market. If your firm believes that is what they are paying you then you aren’t lying.

Posted By Matt, Louisville KY : October 24, 2007 10:45 am

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About the authors
Money Magazine's ethicists are the authors of "Isn't It Their Turn to Pick Up the Check?" (Free Press, 2008). E-mail them at FlemingandSchwarz@right-thing.net

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