Is this true?

[E equals MC2]

There's a word that when you're interviewing for other jobs, your compensation history can be inflated a bit (maybe provide the industry standard or higher percentile if you make less than either of them) than your actual salary to provide leverage & get the most out of your new job.

This is because they say the new employers don?t actually check compensation history or your former employer typically refuses to provide the amount.

Are either of them true? What are your personal experiences? Anyone in HR?

 

[lokiju]

I've been told from a hiring manager at one place (he was my brothers friend) that you are better off lying.

For example.

If you make $50k and tell them that, they'll probably offer you $55-60K depending on the job, if you told them you make $69k, they'd offer you up to $75k.

This was a specific example of a job he was hiring for.

 

[Chronoshock]

As far as I know, they do not check. That being said, most companies don't really care what you put down (at least early in your career). I will be graduating next spring, and just finished my interview process. I have received 3 offers and none of them really paid any attention to my desired salary/compensation history. The first offer offered a typical amount for my major/degree which was much more than my last salary (summer internship for 31/hr). For the next company, I put down 5k over the previous offer under desired salary and they offered 20k more. I mentioned the previous offer to the third company and they just said they couldn't afford that much and offered a similar amount to the first offer. Companies will be competitive within their means, and while putting down the industry avg for your compensation history won't hurt (provided they don't check up on it), it probably won't help all that much.

 

[Cerpin Taxt]

It is my understanding that your actual salary is private information that your employer is prohibited from disclosing without explicit consent from you. In general, employers do not even bother asking your former employer because they know it is not something that they can discover.

 

[D1gger]

As an employer, I always ask the question, but I don't expect the answer will be accurate, and I have no way of checking.

 

[woodie1]

None of the companies I worked for would give out that information.

 

[torpid]

If a company asked me what I am making at my current position when interviewing that would be a bit of a red flag for me because it means they want to cheap out on the position if they can. Asking what I expect to earn if I work for them should be good enough.

 

[spidey07]

It is NEVER a good idea to provide salary history or even mention a number. You lose all position when you do. They could be prepared to offer 150K but you tell them 80. BAM, they offer 85 and know you'll take it.

The book "how to make 1000 dollar a minute" or something like that explains it very well. Essentially nothing good can come from providing a number or history.

My experience is if you don't provide a number they will keep raising and raising until they get a yes. Or if need be extra benefits like bonus, vacation, added retirement, etc as well to make total compensation attractive.

 

[Regs]

Rant time!

This is why I hate dealing with HR. They know nothing about your job. They know what your manager writes up when you first get hired, though a year down the road your original job description no longer exists. They don't know what skills you need nor do they know how well you execute your job, and they don't care.

For example, my friend and partner at work who I trained was passed down for a job he had 2-3 years hands on experience in. Our department was giving a task to handle something some other department couldn't handle. And that some other department was liquidated to say the least. He did a damn good job juggling two jobs at once because others couldn't handle it. But when it came down to actually paying him for a job he was all ready doing and doing a good job in, they didn't want to give it to him because he didn't have the required educational background . So they give it to some other guy because he fits the "pre-requisites". Bullshit. No, they gave it to the other guy because he came from a competing company and our company does not want to "inflate" the job market with people who think they can get a decent job by not paying 100k worth of college education.
If it was completely up to the hiring manager, he would of got it.


HR departments are no more than a bunch of accountants and politicians. I'm overly convinced. Their only usage in any company is to make sure they follow civil law and play the number game so that our wealthy stock majority holders are not pissed off when dividends are paid out. I'm sure if he was from Iraq, only 3 feet tall, or only had one real eye he could of got the job.

 

[Alistar7]

Originally posted by: spidey07
It is NEVER a good idea to provide salary history or even mention a number. You lose all position when you do. They could be prepared to offer 150K but you tell them 80. BAM, they offer 85 and know you'll take it.

The book "how to make 1000 dollar a minute" or something like that explains it very well. Essentially nothing good can come from providing a number or history.

My experience is if you don't provide a number they will keep raising and raising until they get a yes. Or if need be extra benefits like bonus, vacation, added retirement, etc as well to make total compensation attractive.

Good advice.

 

[E equals MC2]

Originally posted by: Alistar7

Originally posted by: spidey07
It is NEVER a good idea to provide salary history or even mention a number. You lose all position when you do. They could be prepared to offer 150K but you tell them 80. BAM, they offer 85 and know you'll take it.

The book "how to make 1000 dollar a minute" or something like that explains it very well. Essentially nothing good can come from providing a number or history.

My experience is if you don't provide a number they will keep raising and raising until they get a yes. Or if need be extra benefits like bonus, vacation, added retirement, etc as well to make total compensation attractive.

Good advice.

So what do you do when an employer says,

"We are very interested in hiring you. Can you provide us with your references and compensation history to further proceed with this?"

Just say no? Easier to just say don't do it, but how do you actually HANDLE it in real life?

 

[Tweak155]

I just recently requested 55-65k from an employer and they offered 66k.

I don't know what made them decide that. Probably turning it down though. I realized I don't wanna live in Wisconsin.

EDIT:

And I was honest about my compensation history.

 

[spidey07]

Originally posted by: E equals MC2

Originally posted by: Alistar7

Originally posted by: spidey07
It is NEVER a good idea to provide salary history or even mention a number. You lose all position when you do. They could be prepared to offer 150K but you tell them 80. BAM, they offer 85 and know you'll take it.

The book "how to make 1000 dollar a minute" or something like that explains it very well. Essentially nothing good can come from providing a number or history.

My experience is if you don't provide a number they will keep raising and raising until they get a yes. Or if need be extra benefits like bonus, vacation, added retirement, etc as well to make total compensation attractive.

Good advice.

So what do you do when an employer says,

"We are very interested in hiring you. Can you provide us with your references and compensation history to further proceed with this?"

Just say no? Easier to just say don't do it, but how do you actually HANDLE it in real life?

I regard previous compensation as private information that I cannot release. However I'd happily entertain an offer with total compensation in line for the duties and decision making responsibilities of the position. Please find attached my references and please feel free to contact them.

If they keep hammering for a number do not budge from your position. No employer needs this information to decide if they want to hire you or not. Once they decide they want to hire you then make their next decision "how do we get him here?" Look at another way, nobody likes cheap stuff - buy making them spend MORE you actually make them feel BETTER about their decision.

Eventually a verbal offer and numbers will be tossed around. Then you have the upper hand and negotiate for the final details of the written/official offer.