Since the beginning of time, job seekers have been faced with this dilemma – hiring managers want to know how much you make and you don’t want to tell them.
Why? Because we all know the employer doesn’t want to give you a penny more than they have to in salary, and if you tell them what you make they’re probably going to give you a slight bump over your old salary.
But, in this economy that’s pretty crummy given scarce raises and bonuses, so lots of people out there aren’t making what they’re really worth right now.
That’s Deb’s problem. She’s found her dream job but doesn’t want to fully fill out the salary-history request from the employer.
“My primary job is at a nonprofit unit inside a major university. Therefore my salary is at rock bottom and I have only received a raise once in my 5 years because of budget reasons, despite getting stellar performances every year. Instead of a raise this year, I was offered a title change,” said Deb. (I didn’t use Deb’s full name for the piece because it’s an unusual one and the employer, if they read my blog by chance, would figure out she shared her story with me.)
The computer manager position she’s applying to included this in the online application:
This position REQUIRES that a RESUME, COVER LETTER, and SALARY HISTORY be submitted in addition to the application. Please have ALL THREE FILES ready to upload when applying.
“Obviously, I don’t want to answer the salary history question,” she explained; and I don’t blame her.
She’s also been doing some side consulting work to supplement her income right now and that created yet another question.
“On a salary history question, I would like to include my consulting earnings,” she went on to explain. “But since that’s my own business, their only verification is my word, so I wonder how much weight they will give it or whether they’ll even consider it as part of my earnings.”
First off, the money coming from her consulting should definitely be considered part of her income for the year in her salary history. She could say, “Nonprofit job and consulting work, total of $XX.XXX for the year.” And if the hiring manager had any sense he or she would look at that total when decided what to offer in salary.
As for disclosing her nonprofit job earnings, there’s no good answer. I say this because there’s a high likelihood you’ll end up on the lower end of the job salary scale unless you do some serious negotiating.
Here are the options:
You can lie, but that tends to come back to haunt you, especially if you put it down on paper.
You can include the salary that you feel you should have gotten for the year and just put an asterisk near it saying, “market rate”.
You could also just leave out the salary for your present job. I have talked to many job seekers over the years that just refuse to talk about what they make until an employer is ready to make an offer. I haven’t done any scientific research on this, but I’d say this tactic works in about 50 percent of the cases. And that’s what I’ve heard in a good economy. Right now, with so many job seekers out there, I’m not sure this will work for you unless your expertise is so rare you have a long line of employers interested.
I’m leaning toward Deb being honest and including both her nonprofit salary and her consulting work.
Phyllis Mufson, a career consultant from Philadelphia, agreed.
“I suggest that candidates be honest about their previous salary, explain the circumstances (i.e. My raises didn’t match my proficiency level and experience because of the recession’s impact on my prior employer), and then move the conversation to the going rate for that job,” she advised. “Your future employer will understand as their business was also affected by the recession.”
This will get you in the door, but know in the face-to-face interview the hiring manager may still try to low-ball you on salary. That’s just how it goes folks. They have a budget and every penny they can keep from you is more in their pocket. That doesn’t mean they’re sinister, it’s just how business typically works.
You’ll have to take off the negotiating gloves if you want to fight this and get the higher rate.
Mufson’s recommendations:
* First research to get a realistic salary range for someone of your skill level and experience in the job you are applying for, adjusting for your geographic area, the size of your potential employers business, and whether you think you are more junior or senior than the description.
* In the interview confirm the that you and the employer agree on the level of skill and experience required for the job and that you meet the requirements.
* Check that you agree on the ‘going rate’, the salary range for the job.
* Then the discussion can move into where you fit in that range and how your performance will be evaluated for future salary increases.
But all this works if you don’t back down. Women especially have a hard time when they get to the negotiating table. (Here’s a two-part series I did for MSNBC on women and negotiating that might help.)
If there’s a salary range that means the high end of that range is available for the right applicant. Keep thinking that when you start to feel yourself giving in.
Are you the right person for the job? Then fight for what you deserve. Don’t let the economy keep ripping you off.
June 9th, 2010 at 9:23 am
For those in the non-profit sector, I have one bit of advice: list your actual salary/wage, and then parenthetically list the pay rate for a comparable position in the for-profit sector.
For example (all the figures made up): Development Manager for Lil’-old-non-profit, $32,000 (comparable positions in the for profit sector pay $68-72,000)
June 9th, 2010 at 9:42 am
Whoa HikingStick. I always appreciate your insights but I think you may be off on this one a bit.
I would see such a comparison as a redflag if I were a hiring manager. They may think: “You know the job should pay double what you’re making but you’re still in that job.” It’s just not the kind of thing you want in a written salary history. You can discuss nuances of your salary face to face and explain the circumstances, but putting it in black and white like that may work against a job seeker.
June 9th, 2010 at 11:50 am
This topic is a real hot button and I agree with the advice you gave, including that there’s no easy answer. I agree that she should give both her salary and her consulting earnings and also that she will have to be honest, but to add what she considers to be the market value.
This is a really tough part of jobseeking and I commend you for writing about it!
June 9th, 2010 at 11:55 am
I did talk to a job seeker a while back who decided to include the market value salary on an application and not what he was actually making. He did not say it was the market value. But he reasoned, they didn’t ask for the actual salary, just salary. Is this lying? Maybe. Maybe not.
June 9th, 2010 at 11:57 am
Try to be vague. “Well the market average according to Salary.com is $XX,XXX - and I hope to be in that range.” This gets the focus off of you and back on to the position.
Both sides are better off if they are honest about salary from the start. You are better off asking for what you want and not getting it than settling for low pay and becoming instantly resentful.
June 9th, 2010 at 11:59 am
That’s a great idea Andrew if you’re talking face to face, but what about when you fill out salary on an application? Any thoughts?
June 9th, 2010 at 1:10 pm
Part of the problem is that they ask you to put *your* salary history down on paper or electronically. For one, who knows who will have access to that information. And more importantly you lose any leverage you may have had before revealing your current salary, which is likely irrelevant to a large degree for this new position. BUT, may be they will trash your resume if you don’t tell them what they want. I think it’s unethical to even ask, but what can you do besides gambling that stating the market rate will diffuse the question.
June 9th, 2010 at 2:24 pm
Eve, I see the point you’re making, but non-profit employees are in a darned-if-they-do, darned-if-they-don’t situation. If they list the market range, the potential employer can argue, “Well, they were willing to work for ‘x’”, but without listing it, the potential employer still knows that the applicant was willing to work for that same amount.
June 9th, 2010 at 2:38 pm
Eve,
What do you think of the following tactic:
1- state the university income (it’s public information anyway), and add on the benefits ~$6000/yr
2- state that there is considerable consulting work on the side, but that income will be discussed if there is mutual interest/an offer?
June 9th, 2010 at 3:29 pm
My gut is not to include the last part, “but that income will be discussed if there is mutual interest/an offer.” Maybe just say you also do consulting work on the side.
June 9th, 2010 at 3:51 pm
Would there be an assumption that the extra consulting work would cease? An employer might see that the applicant already has a job and yet is consulting on the side, so might question the applicant’s commitment to the new job.
June 9th, 2010 at 3:55 pm
What about when your just starting out and it’s your first job? Do you go the modest route and list the lowest salary for the position or do you shoot higher so that you can negotiate later? Or perhaps leave it blank? I’m always confused on what to do in this situation as you can see.
June 9th, 2010 at 5:04 pm
HikingStick, You can assume that the consulting job is done on the side, and has been while at this current job. So there has been no interference between the two. It’s also possible that the consulting job could cease or cut down, if the offer is worth her while. That could be a negotiating point.
What do you think?
June 9th, 2010 at 5:59 pm
Yes, exactly SN.
DiGi, what a great question. I would say something like, “graduating student” or “recent graduate”. “Income limited.” or some such.
June 9th, 2010 at 6:26 pm
I wonder if it’s worth asking the hiring manager or HR if they’re going to be strict about requiring salary histories. And to remind them that the appropriate time to ask for someone’s private information is when there’s a mutual interest/offer. I would ask it anonymously, of course.
June 9th, 2010 at 9:39 pm
It’s a tough one, especially on automated applications when the salary is a “required field” to be filled in. Sometimes they will provide ranges and you have to click on one (e. 33,000-40,000). In those cases it’s frustrating because the computer doesn’t give you an option–you have to select one!