Honesty in Salary Negotiations: Should You Inflate When Asked About Your Last Job’s Compensation?

In job interviews, potential employers often inquire about your previous salary. While this might feel like a delicate situation, navigating it effectively can positively impact your negotiation outcomes. Here, we explore whether it is beneficial or safe to inflate the amount you earned at your last job and what strategies to employ in such scenarios.

The Diplomatic Answer: Flexibility in Response

Whether you should truthfully divulge your previous salary or inflate it depends largely on the context of the new opportunity. It is not uncommon for employment applications to include salary history questions, and you do not have to answer if you choose not to. However, knowing how to respond diplomatically can be a strategic advantage in salary negotiations.

Preparing Your Response

Consider framing your answer around your salary expectations rather than directly answering the salary question. For example:

Q: What range do you expect for this role?
A: I’m expecting to be compensated in this range: nn - nn

This approach takes the focus away from your previous salary and shifts it to the new opportunity, aligning your responses with your professional goals and the job description.

The Evolving Landscape: Legal Considerations

As of the writing of this article, several U.S. states and some international regions have laws against asking about salary history, categorized as discriminatory. If you live in or are applying for positions in areas where such laws are in place, you can politely decline to provide this information.

For those areas where asking about salary history is not illegal, there are still valid reasons for not disclosing your previous compensation:

Your previous role involved high responsibility and stress, such as management, which you are now transitioning to a less demanding position. You are moving from a high-cost area to a low-cost area, where salaries naturally differ. Your role previously required 24/7 availability, but the new position would not.

In all these cases, your current or future compensation is best suited to the new role and travel or lifestyle changes.

Educational Insight: Why Disclose Matters

It is important to understand that the previous employer does not need to know the reasons behind your compensation. If you were paid more due to on-call 24/7 arrangements or limited vacation, these factors may not be relevant to the new position. Focusing on the current and potential opportunities can lead to a more balanced discussion.

Strategies for Salary Negotiation

Here are some strategies to assist you in salary negotiations:

Research Thoroughly: Understand the market rate for the job you are applying for. This research will inform your expectations and provide a basis for discussion. Be Prepared: Have a range ready for your expected compensation. This will show your professionalism and commitment to the role. Listen Actively: Pay attention to the employer's initial offer or range. This allows you to gauge the flexibility and may inform your response. Be Honest Yet Strategic: If asked, provide a generic figure or simply say you are willing to discuss the compensation as it aligns with the new role and your research.

Remember, the goal is to achieve a fair and reasonable compensation that reflects your value to the company and the market conditions. Being honest about your previous salary and focusing on the new role's context will help you maintain professionalism and integrity during salary negotiations.

Conclusion

Salary history discussions can be challenging, but handling them strategically can lead to better outcomes. By understanding the context and your own motivations, you can navigate these conversations with confidence and integrity.