Don’t be coy about salary needs when you’re seeking a new position

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Dear Joan:
I've been reading and following your words of wisdom for several years now, and also enjoy your web page. I do have a question regarding the words, "salary history," or "salary requirements."

When responding to an ad or letter from a prospective employer, I am a little squeamish about how to approach the salary issue. What are human resource departments looking for when a potential employee answers this question?

I feel I may have priced myself out of further interviews by answering this question honestly.

Answer:
In recent years, you've probably noticed most ads now require that you send information about your salary expectations. And, if you're like most people, you'd rather skirt the question or just respond, "salary is negotiable." After all, you might reason, why knock yourself out of the running before you even get in the door? Unfortunately, this is a mistake, and here's why:

With HR departments short of staff and hiring managers short of time, they don't want to waste time interviewing candidates only to find that their salary expectations aren't going to match. In fact, I had some first hand experience with this situation recently. I was interviewing candidates for a client who needed to fill a key job. In the want ad we asked for salary expectations. Most people included the information. In one case, a candidate didn't include salary information but we interviewed her anyway because she had so much experience. She took a day off of work to interview. I spent over and hour with her and then asked the question about what salary she was looking for. She was $20,000 over what the company could pay and she was unwilling to go any lower. Needless to say, it was a big disappointment (and a waste of time) for both of us.

Now, how do you answer that all-important question? HR departments just need to know if you're in the ballpark. You don't need to take the words "salary history" literally. In other words, there is no need to detail each job you've ever had and how much each paid.

I suggest putting your information in the cover letter. But be careful how you state it. For instance, it you tell them exactly what you're making now, what could be the result? You guessed it. If you get the job, you may not get much of an increase over what you're making now. And if you're a career changer, your current salary may be way out of line with what the new field pays. For instance, if you're moving from a nonprofit organization your salary is likely to be below what a private firm will pay. Your salary could make you look less experienced. On the other hand, if you're willing to take a salary cut to move into a new field, you may never get the chance. So what to do? List the salary you're looking for, instead of what you're paid now. (Besides, what you're paid for your current job has nothing to do with what you should be paid for your next job.)

Another tip is to use general numbers. For instance, say "mid 30's" instead of "$35,000." And avoid using ranges such as "$40,000 to $50,000." Stating a range caps the amount and limits your ability to negotiate.

When you're in the interview, avoid talking about salary until you've learned a little more about the job. After all, how can you know what the job is worth until you've heard what it entails? If the interviewer brings it up too early, stall by saying something such as, " If you don't mind I'd really like to learn a little more about the job before we get into the details of salary. Of course salary is important but I want to make sure the job is a good fit for my skills so we can both see if it's even worth discussing salary." If you're backed into a corner and the interviewer says, " What salary do you want?" reply with, "What is the salary range of the position?"

In the end, don't be shy about negotiating for non-monetary things such as an extra week of vacation, a lap top computer, comp time or expenses when you're in the field, such as auto and phone expenses and mileage.

If you really want the job but you find that company simply can't pay you the last $5000 you're asking for, try this approach: Suggest that they hire you and decide for themselves if you're worth the extra $5000 at the end of six months. Ask them what kind of results would convince them that they should pay you the money at the end of six months, and then get it in writing. 

Savvy Negotiation Strategies to Get Paid What You’re Worth on a New Job (Detailed, 8-page PDF by email – no shipping charge)
Easy, Step-by-step Guide to Using the Internet to Land a Great Job (Detailed, 10-page PDF by email  – no shipping charge)
The Resume That Opens the Door and the Interview That Gets the Job (Detailed, 37-page PDF by email – no shipping charge)