What are you worth?

You’re in an interview and the inevitable question comes up: ‘what’s your current salary?’

Do you:

 a) change the subject and discuss the weather

 b) say you’d rather not answer

 c) spill the beans

While you may be tempted to be coy about what you earn, what you should in fact be doing is c) spilling the beans, however, many there are.

Here’s why…

It’s a quick qualifier for our consultant

Consultants need to know you are the right fit for the role, both in terms of your skillset and your salary expectations.

If you are currently earning well above the market value for the position you are being considered for, you are highly unlikely to move. The last thing both parties want is to waste each other’s time.

If, on the other hand, you are earning way below what you’re worth, you may be pleasantly surprised by how much the prospective employer is willing to offer you.

It reveals whether you are the right level of candidate

The reason consultants talk about salary early is that it’s a quick qualification question to see whether a person is in the ballpark in terms of the role that we’re recruiting for.

It also tells us whether a person is a genuine candidate or not. In other words, the salary sometimes reveals whether someone is too small or big for the role.

As an example, if a person is earning $150,000 plus bonuses as a Project Manager for a $25 million company, they may not be the right fit for a $50 million company offering $300,000 plus bonuses.

Possible scenarios when you show your hand:

• You discover you’re being underpaid
  The most common way someone could be underpaid is if they have been with their existing organisation for some time and their existing organisation doesn’t know their value out in the marketplace. In this instance, there’s no harm in revealing how much you are earning, because you’re likely to be earning a lot more if you are offered the new role you are discussing!

• You’re being overpaid
  There are other times when Executives may be overpaid for the job they’re doing. They too could have been with the organisation a long time and be of considerable value. In this instance, it’s obvious the candidate has golden handcuffs, and the organisation does not want them to leave so will pay them above market value to keep them. In this scenario, you really have nothing to lose by being upfront about how much you earn.

Should you provide a salary range?

If you are considering giving a salary range, there’s really no point. It’s best not to be coy and to come out with it. If people are really shy, instead of stating the actual amount, they could give a ballpark. As an example, say you are earning $240,000 plus super, you could say “mid $200,000 plus super”. That’s one way to answer the question without talking about specifics.

Should you ever bring up salary?

Absolutely not. Whatever you do, as a candidate, don’t bring up salary. Always let the consultant lead the salary discussions.

What happens after you show your hand?

In most instances, the consultant will reveal how much their client is offering. In some instances, clients may ask for evidence of salary to verify what’s been discussed during the interview.

Counteroffers

Counteroffers are when a person resigns and the existing company offers them additional money or perks / makes promises regarding promotions etc. to entice them to stay. Generally, candidates who are looking for another opportunity have a problem with their existing company, team, boss or role and this is not going to change. It’s very flattering, but more than 60% of the time after a counteroffer, the person who has been counteroffered will generally resign within six to 12 months. They were obviously not satisfied previously but this has now been compounded by a lack of trust. When you show your hand and resign, that trust has gone. Once you remain with the company, on the most part, the relationship has already changed and it can quickly become untenable.

Incentives companies use to poach you

There needs to be an incentive for candidates to move from one role to the next, whether it’s the prospect of job progression, or financial gain, increased flexibility etc. At the pointy end of the salary negotiations, very rarely do candidates leave for a salary that matches their current one. Most seek a salary increase to warrant the risk of moving jobs. That’s another reason why salary gets talked about early in the process.

One last no-no

If you give an indication of your salary expectations, it’s important not to suddenly change your mind at the pointy end of the interview process and demand more money. This reflects badly on you as a candidate and you risk not being appointed in the role. Playing games is not a good reflection on you as a candidate.

Like to know more?

When it comes to salary talk, it’s best to cut to the chase early and show your hand. Being honest and transparent will pay dividends in the eyes of the consultant and it will inevitably lead to a better outcome for all. Our consultants are not afraid to delve into the difficult questions, like how to navigate salary talk. If you need any advice with your job search or recruitment needs, contact us today.