What is your current compensation? This question and how you answer it in a job interview creates all sorts of problems, issues and opportunities for the job seeker. In jurisdictions where it’s legal for employers to inquire about it, it’s important to respond tactfully and strategically. Here are some approaches for handling this difficult question.
The Legalities
Know the laws in your jurisdiction regarding disclosure of current compensation. As of May 8, 2024 there are 22 state-wide bans and 23 local bans. Almost all HR employees will adhere to the law but sometimes line managers aren’t as tuned in to the legalities. You may question working for a company that doesn’t honor the law as it relates to this question, but you still have to deal with it while you are in the interview.
Candidate Preference – Provide a General Answer or Redirect
If it’s legal for employers to ask, you need to provide an answer. Instead of giving a specific number for their current compensation, candidates get into discussing their total compensation package, including salary, bonuses, benefits, etc. For example, “In my current role, my total compensation package is in the range of $X to $Y annually.” Or candidates will use ranges. They provide a salary range that reflects their current compensation without being specific. For instance, “My current salary is in the range of $X to $Y per year.”
Candidates also try to redirect the conversation “I’m more interested in discussing the opportunities and responsibilities this role entails. Could you tell me more about the salary range for this position?” Or they skip answering the question at all, and move to emphasizing how their skills and experience align with the job requirements.
Typically these responses just annoy whomever you are interviewing with. At some point your current compensation needs to be shared. Dancing around your response doesn’t make anyone happy.
The Right Thing To Do: Be Honest and Transparent
Companies know which of their competitors are cheap, pay less or pay too much. They also recognize that if you aren’t compensated appropriately that could be the reason you are looking for a new job. Share your current compensation, and if you feel it is off from your value, explain why that has happened. Give a realistic compensation expectation and the justification for it.
You are a professional and you will have done sufficient research of the marketplace to know what your right compensation should be, even if you currently aren’t getting it. Sources for pay research include Glassdoor.com, payscale.com, salary.com and the U.S. Bureau of Labor Statistics Make sure you take into consideration factors that could impact your compensation level that aren’t always clearly a part of the calculation. These include geographic location when cost of living isn’t fully factored in, education level if it is different that what is typical, years of experience and your ability to explain what you know and any certifications you may have.
Your current compensation discussion is a very important part of any interview. By preparing thoughtful responses that respect both your privacy and the employer’s need for information, you can navigate this question effectively during your job interview.
