Companies asking for current salary before offer

[sikes0000]

Originally Posted by bandibadji

It is important for the prospective employer to know this information so that a fair, agreeable salary can be negotiated.

Fair and agreeable? Fair to whom? If it is fair to the company/potential employee then the salary should reflect that potential employees possible asset to the company. It should not have anything to do with their current/past salary history.

It obviously doesn't work like that because the employer has a budget and needs to get the employee at the lowest price. The interviewee should be shooting for the other end of the scale. Coming from a position with a low salary doesn't help your situation. You gotta be a great negotiator. But these day's companies hang on to their wallet more then ever. Money talks...as long as that money stays in the employers pockets.

[black_fx_35]

Originally Posted by sikes0000

It obviously doesn't work like that because the employer has a budget and needs to get the employee at the lowest price.

Not sure where you have been interviewing, but the organizations that I have worked for have never had a mentality of getting the employee at the lowest price. I try to hire people at a rate that is inline with their experience/skillset, what the market dictates, and aligned with any potential internal equity issues that I might face. If I hire someone below market value, it does me no favors because this person will leave at somepoint to be compensated what they believe to be equitable. Once they leave, I have lost a significant investment in time, training, knowledge, relationships. So, frankly, I would rather pay the person the correct amount to begin with. Trying to nickle and dime isn't going to do much long time. And 10K for a multi billion dollar company is peanuts, but to an employee that could be huge. I am a firm believer in the saying "an extra 5K in salary buys you an extra 500K in excitment, enthusiasm and loyalty".

I guess I am the minority here though, as it seems I am fighting a battle I am not going to win. I have no clue what your situations have entailed, I can only speak to my experiences. I have recruited for a F10 company, a $11B company, a $6B company, a $3.5B company...so all large organizations, and I can tell you their philosophy on compensation has been pretty consistent across the board...

[bandibadji]

Originally Posted by sikes0000

Fair and agreeable? Fair to whom? If it is fair to the company/potential employee then the salary should reflect that potential employees possible asset to the company. It should not have anything to do with their current/past salary history.

It obviously doesn't work like that because the employer has a budget and needs to get the employee at the lowest price. The interviewee should be shooting for the other end of the scale. Coming from a position with a low salary doesn't help your situation. You gotta be a great negotiator. But these day's companies hang on to their wallet more then ever. Money talks...as long as that money stays in the employers pockets.

It goes farther than what you have mentioned. Yes, companies want to hire at the lowest acceptable salary but want to present a salary that will suit the prospective new hiree. This can only be done if the interviewer is aware of the past salary. There are other factors that are more important than past salary, but salary imformation is important. The most important factor in an application is the ability to perform the task, next are recommendations. After those milestones have been crossed, salary negotiation comes up. That is where it is important to know the past salary history for the sake of negotiation. It is only a helpful tool. But, if the person doing the interview wants the imformation, they should get it or end the inverview.

[coped]

Originally Posted by bandibadji

It goes farther than what you have mentioned. Yes, companies want to hire at the lowest acceptable salary but want to present a salary that will suit the prospective new hiree.

A polite way of saying "lowballing." If an employer ever demanded my current salary, after I declined, I would not be working there.

[texdav]

One thing they are look for is how much that company thought you were worth. You can refuse but they may not hire you.Mostly you will find that in jobs where their looking for a experienced worker they will put forth a salary and benefits along career info.

[mdwstrnkid]

Originally Posted by black_fx_35

Not sure where you have been interviewing, but the organizations that I have worked for have never had a mentality of getting the employee at the lowest price. I try to hire people at a rate that is inline with their experience/skillset, what the market dictates, and aligned with any potential internal equity issues that I might face. If I hire someone below market value, it does me no favors because this person will leave at somepoint to be compensated what they believe to be equitable. Once they leave, I have lost a significant investment in time, training, knowledge, relationships. So, frankly, I would rather pay the person the correct amount to begin with. Trying to nickle and dime isn't going to do much long time. And 10K for a multi billion dollar company is peanuts, but to an employee that could be huge. I am a firm believer in the saying "an extra 5K in salary buys you an extra 500K in excitment, enthusiasm and loyalty".

I guess I am the minority here though, as it seems I am fighting a battle I am not going to win. I have no clue what your situations have entailed, I can only speak to my experiences. I have recruited for a F10 company, a $11B company, a $6B company, a $3.5B company...so all large organizations, and I can tell you their philosophy on compensation has been pretty consistent across the board...

I completely agree with you. We don't ask about previous salary but we do ask about salary expectations up front to make sure that we don't waste each other's time. We will make the candidate an offer that is commensurate with their skills and experience because we don't want them to leave because of compensation; it costs far more to rehire for the position than the extra few thousands of dollars a year that it would have cost to keep them.

[RowingMunkeyCU]

And who's to say you can't include your benefits package in the 'salary' either. I mean, sure, your take-home salary might be $50k, but vacation time is priceless So really, if you include the value of your vacation time to you in that salary, you can make however much you want (within reason).

[macroy]

Originally Posted by ndepse10

Are you really required to give your current salary to a company you are interviewing for?

It just doesn't seem right .... because they will give you an offer based off what you are currently making. I wish they didn't ask that and I could just tell them what I am looking to make ...

any comments ...?

Not having read all the other posts - I'm gonna say that they can ask for whatever they want in terms of your info. It's up to you to provide it or not. Its a negotiation game. If you don't and another applicant did.... you may have lost that position right there. So the choice is yours.....

I personally don't even apply for positions that "require" your salary history in advance (only salary requirements). But again, that's my rule. And I may have lost out on a few good positions... but I'm sure those companies have also lost out on a few good employees.

[black_fx_35]

Originally Posted by RowingMunkeyCU

And who's to say you can't include your benefits package in the 'salary' either. I mean, sure, your take-home salary might be $50k, but vacation time is priceless So really, if you include the value of your vacation time to you in that salary, you can make however much you want (within reason).

Any good recruiter is going to ask follow up question to determine the components of your "salary" figure. What that your base? Was that all in? Stock options? Per Diem's? Car allowance? For me to present a fair offer to you (fair to everyone involved) I need to have an understanding of these numbers and what your expectations are.

Additionally, NO RECRUITER likes to have offers declined. So for me to personally increase my chance of extending an offer that is accepted, AND to ensure you are the right person for the job AND that the job is the right job for you, I need to know certain information. Again, not sure where you all are interviewing, but from my perspective, this process is collaborative with my candidates. You elect not to share information with me, thats fine. No problem. There is an element of risk that I associate with you, and may ultimately determine it is not worth my time pursuing. It has been my experience though, that 95% of the candidates I deal with are going to be forthcoming with their expectations and historical information.

Do you actually believe I am going to put a compensation package together blind? Not a chance. I am not out to do you wrong. I am not out to minimize your earnings. I am not out to pay you the absolute minimum that I can. I am out to do the right thing for you and my company. And guess what, in the event that "you" accept the offer, you become part of "my company". No sense in screwing you before you begin. Successful organizations understand the war on talent, and there is a cost to pay for that talent. I put you through an extensive interview process (in part) to determine what that cost is. What your value to the organization is. What your opportunities for personal and professional development are.

[jobsknh]

Hi -

I am expecting my job offer today (the recruiter had mentioned that it was being written up yesterday...finally after 3 interviews). In fact, he asked me how much I was currently making - maybe I shouldn't have told him as it is about $25,000 less than the job is advertised for (I'm currently working for a not-for-profit).

Anyway, what do people think - do you think the company will try to get me for a bargain - even though they have put their salary range out there? I've been doing salary research - its a web marketing specialist position and the median salary is in line with what they are advertising.

I guess I won't know until I receive the offer. Any advice?