The question, “What is your current salary?” is a stressful moment during the hiring process that can heavily influence your future earning potential. Answering incorrectly can shift the dynamic of a salary negotiation before it even begins. Navigating this question requires a strategic approach to focus the conversation on the value you bring to the role, rather than being anchored to your past compensation.
Why Employers Ask for Your Salary History
Employers inquire about salary history for several business reasons. A primary factor is budgeting, as they need to confirm your expectations align with the position’s predetermined salary range, which helps filter out candidates who are financially out of reach.
A candidate’s previous salary is also used to gauge their market value and experience level, serving as a shorthand for seniority. Knowing your past pay gives the company a negotiation advantage, as they can anchor the conversation to your previous salary to potentially hire you for a lower cost.
The Risks of Disclosing Your Current Salary
Sharing your salary history can limit your earning potential. The most immediate danger is being “lowballed.” If you are currently underpaid, an employer might use your low salary as a baseline and offer only a small increase, even if the position’s budget allows for more. This practice can perpetuate wage disparities, particularly for women and minorities.
You also risk “pricing yourself out” of consideration. If your current salary is high, an employer might assume you are too expensive without discussing your flexibility or the total compensation package. Disclosing your salary shifts the focus from the value you provide to the cost of hiring you.
Know the Legality of the Question
It is important to know that asking about salary history is illegal in a growing number of locations. Many states, including California, New York, and Massachusetts, have enacted salary history bans to promote pay equity by breaking the cycle of basing new salaries on potentially discriminatory past wages.
The specifics of these laws vary. Some jurisdictions ban employers from asking about past compensation, while others prohibit them from relying on that information to set pay. Before an interview, perform an online search for “salary history ban” in your state and city to understand your rights.
How to Respond to the Salary History Question
Deflect and Pivot to Your Expectations
The most effective strategy is to politely deflect the question and pivot toward your salary expectations for the new role. You can say, “I’m not comfortable sharing my personal financial information, but my salary expectation for this position is in the range of $X to $Y.” Another option is to state, “My previous compensation was for a different role. I’d prefer to focus on the value I can bring, and based on my research, a salary in the range of $X to $Y is appropriate.”
Provide a Researched Salary Range
If the interviewer persists, provide a well-researched salary range that you have determined is fair for the role, your experience, and the location. This is not your previous salary. This approach demonstrates you have done your homework and keeps the negotiation centered on market data instead of your personal history.
Handle Online Application Forms
Online application systems often have a mandatory field for current salary. If the field requires a numeric entry, inputting “0” or “1” can signal that you wish to discuss compensation later in the process. You can also mention in your cover letter that you are eager to discuss salary expectations once you learn more about the role’s responsibilities.
Address Persistent Interviewers
If an interviewer pushes for your salary history after you have deflected, remain polite but firm. You could respond with, “My salary history is confidential, but I am confident we can agree on a fair number if we determine this is a strong fit.” This response reiterates your boundary while keeping the tone positive and focused on a mutually beneficial outcome.
Preparing Your Salary Expectations
Pivoting to your salary expectations is only effective if you have a well-researched number ready. Use online salary calculators like Glassdoor, Salary.com, and LinkedIn Salary to research the market rate for the job title in your region. These platforms provide data points that can be filtered by location, experience, and industry.
Next, honestly assess where you fall within that market range. Consider your:
- Years of relevant experience
- Specialized skills
- Advanced education
- Unique qualifications that might place you in the upper end of the range
An entry-level candidate will fall lower than a senior professional with a proven track record. With this information, define a target salary range, like $85,000 to $95,000. The bottom of your range should be a figure you would be pleased to accept. A data-backed range empowers you to state your expectations and negotiate from a position of strength.