I recently received the following question from an ExecuNet member:

QUESTION TO LAURYN

I have had several interviews where I had to list information about all previous jobs, including base salary, bonus and other compensation. I disclosed the numbers the first time, and they were immediately used against me in the negotiation to bring me to a number closer to their target.

I accepted the job but kept looking around. I'm currently in the final stages with another firm. But now they've asked me for my complete salary history. I'm worried that they'll either eliminate me from the mix because my current salary is above their range or pin me down to a low number. How do I get out of giving them my salary history? I've tried every trick I can think of. In the first phone interview, I deflected the request and asked for their salary range. It was lower than I was hoping, but I want the job and there are other benefits on the table.

Later, when they repeated the request for salary history, I tried: "My policy is not to share salary information until I'm the selected candidate and we're considering an offer." Then I added: "I'm flexible and will consider the entire compensation package."

Their reply: "While I appreciate your concern, the consideration of a candidate's salary history is an essential part of our hiring process. Because you're a finalist for the position, we need to perform the proper due diligence on your background prior to making an employment decision. Be assured that any offer will be determined by the specific responsibilities and requirements of the position."

I find it disconcerting that companies want my salary history before they decide to hire me. What can I do?

Worried in Walla Walla

LAURYN'S RESPONSE

Here was how I responded to Worried's question:

I don't think you can get around it. You need to furnish the salary history information the employer is asking for.

Genesis of the Money Question & Why You Can't Avoid It

Why do candidates get asked to provide their salary history? The answer depends on who's doing the asking and at what point the request occurs.

If a recruiter asks the money question early in the process, it's generally to make sure that you're in the ball park. This is also the likely motive when an HR person asks for salary history before you've met the hiring manager. If your price is too high, you're likely to be screened out then and there. If you've advanced into the hiring process and the hiring decision maker asks for salary history, the information will be considered as part of the decision whether to hire you.

No avoidance tactics will help you at this point. You'll have to reveal at least your current salary and expectation - unless you're prepared to forfeit your candidacy. Still, you may be able to avoid revealing your complete salary history. You could try responding like this: "My current total compensation is X, and my salary expectation for this position is Y. Is that within your range?"

Conclusion

Keep in mind the overall context. One of the biggest concerns of recruiters and prospective employers is about a candidate's loyalty and longevity. When an employer hires a manager currently making $100K to a new job that only pays $60K, it runs the risk that the manager will bail out the moment a higher-paying job comes along. On the other hand, an employer may be reluctant to hire candidates making $60K for a job paying $100K because they lack the expertise required. It's a Catch 22. But it's a reality you must be prepared to confront any time you apply for a job whose salary is out of line with what you currently earn.

Wishing you career success,

Lauryn Franzoni
ExecuNet, www.execunet.com

BY THE NUMBERS

The Rising Cost of Health Benefits

By Glenn Demby

It's hardly news that U.S. employers are spending more than ever to furnish health benefits to their employees. But at least the rate of cost increases has held steady over the past three year at about twice the rate of inflation - still high but much below the 15% rise of 2002. Consider the following numbers:

5.7 The percent by which U.S. employers expect benefits costs to rise in 2008

473 The average deductibles paid by individual employees of large companies (over 500 employees) for health services* (up from $426) in 2007

872 The average deductibles paid by individual employees of smaller companies (10-499 employees) for health services* (up from $859) in 2007

1,134 The average deductibles paid by families of employees of large companies for health services* (up from $1,022) in 2007

1,879 The average deductibles paid by individual employees of smaller companies for health services* (up from $1,786) in 2007

80 The percentage of large employers that use health management programs, such as wellness, to control costs (among these, 63% report success)

52 The percentage of large employers that actively promote employee consumerism of health services to control costs (among these, 62% report success)

5 The percentage of employees currently enrolled in a Consumer Directed Health Plan, such as a Health Savings Account or Health Reimbursement Account (up from 3% in 2006).

* "Health services" means services provided by an employer in-network under a standard preferred provider organization (PPO) plan

SOURCE: Mercer's National Survey of Employer-Sponsored Health Plans, Nov. 19, 2007, http://www.mercer.com/pressrelease/details.jhtml?idContent=1287790.

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