Thanks to the new Massachusetts Pay Equity Law, employers will be banned from asking prospective candidates about their salary history (effective July 1, 2018). But until the remaining states follow, how do you respond when asked, “What are you currently earning”?
Questions about your salary history are stressful. In fact, they can feel more distressing than the complex negotiations that follow. Complicating matters is the fact that questions regarding your salary history are posed early on in the application or interviewing process at a time when your main focus is making a good impression and advancing to the next round.
So how should you, particularly if you are earning below-market wages or a first-time job seeker, respond when asked about salary history? Will sharing your low salary put you at a disadvantage down the road during salary negotiations?
Handling early conversations about salary can be tricky but, with some insight and preparation, you can avoid limiting your earning potential to what you currently make and advocate for the salary you rightfully deserve.
Why do employers ask salary history?
Before navigating salary questions successfully, it is important to understand why employers ask these questions in the first place. Part of the job of an HR professional or hiring manager is to bring in candidates who, on paper, are the best fit. Naturally, one aspect of “fit” is financial. This leads us to the two important questions employers are looking to answer.
The first is whether or not they can afford you, and candidates disclosing a high salary history during the application or telephone interview might be perceived as “too expensive.” The second is whether or not they can steer you to the lower end of their designated pay scale.
Addressing Salary History on the Online Application
When answering this question, there are a few approaches candidates can take. The following are two strategies for sharing this information during the online application process.
- Assuming you cannot leave this section unanswered, be honest and share your current salary. You can prepare your response in advance if you expect this figure will be used as a starting point later on during the negotiation phase. (A sample response is provided in the next section.)
- If your past earnings are higher than your current earnings, consider sharing an average.
Addressing Salary History During the Telephone Interview
It is ideal to discuss a low salary history during the telephone interview rather than the online application because, in conversation, you have the opportunity to put your salary history in context.
For example, you may be a full-time student earning an advanced degree (with zero income) or you are in the midst of a transition. Using your current salary to formulate a potential offer is like comparing apples to oranges. When answering this question, your goal is to show an employer how your current and/or past salary has little relevance to this position’s market rate: your salary should be based on your expertise and be aligned with the typical salary range for professionals within the field.
A smart way to answer, “What are you currently earning?” is:
“My current earnings are quite different than the salary range I’d expect with this position.”
You can stop right there, but if pressed further, follow up with:
“For a position requiring this level of responsibility and expertise, I’d anticipate a salary in the range of $___ to $___.”
Let’s say you make it through the interview process and are extended an offer. However, based on your research, the salary offered is much lower than expected. You suspect your previous pay, rather than the current (and competitive) market rate was used to establish the offer amount. Not to worry, you anticipated this and are ready to address the low salary in your negotiation script. For example:
“I was somewhat surprised by the salary you offered. Based on competitive market rates for positions such as this, coupled with my expertise in x, y and z, I was expecting $___.”
In the end…
Can sharing a low salary history put you at a disadvantage early on? Unfortunately, yes. But, once an offer is made you can skillfully negotiate a salary based on merit. Not based on previous pay.
About the author
Dara Wilson-Grant is a Licensed Professional Counselor. Her focus is on career-related issues, including career change, professional growth, and workplace challenges. Dara’s career management workshops have been presented at universities, government agencies and research institutions.