How do you handle the dreaded salary requirements question when interviewing?

[imageWIS]

Originally Posted by Hannerhan

Yeah but that's not the way the real world works. In the real world, companies look at individual situations and try to save money when they can.

For instance, I hired a couple of portfolio managers last year and I'll give you a synopsis of how it worked/works. First, I'm in a very captive market where there are few employers that can offer this type of experience. So for those of you in New York, things would work differently because people can switch jobs so easily....

Yeah but that's not the way the real world works.

 

[Hannerhan]

imageWIS, I'm interested to hear why you say that. In my experience, it's a lot tougher for an employer to get away with paying less-than-market in New York than it might be for companies in other markets. At least in my business which is finance/investments.

 

[Jr Mouse]

Originally Posted by Hannerhan

Yeah but that's not the way the real world works. In the real world, companies look at individual situations and try to save money when they can.

For instance, I hired a couple of portfolio managers last year and I'll give you a synopsis of how it worked/works. First, I'm in a very captive market where there are few employers that can offer this type of experience. So for those of you in New York, things would work differently because people can switch jobs so easily....

But anyway, I can interview 3 people who are each say, 4 years out of undergrad. And let's say I'm willing to pay $150k on the high end. All these people are really smart and with a reasonably good skill set and who would add similar value. Guy #1 worked in management consulting with the Boston McBainey Company and he's making $140k right now. Guy #2 worked on Wall Street for a couple of years and then moved back to Texas and is working a non-ideal job at a commercial bank but wants to come work for a company like us. Currently at $90k. Guy #3 is in private equity locally and is at $165k. Who would you hire and how much would you pay them?

Spoiler: I'd hire guy #2 and pay him $100k.

You just proved why one should never give out their previous salary history.

 

[Matt]

Originally Posted by Master-Classter

there's a few things... 1. Your previous roles are probably not relevant, especially if you're changing roles or moving up. So if they try to pin you there just say that those were different circumstances (companies, roles, experience levels, etc). 2. Never name an outright number, especially before they do. I've done a bunch of interviews and the question always comes up. My answer is, a) I expect that you probably have a range in mind and I'm not going to particularly question it as long as it's within a reasonable bounds. You'll give me a range and I'll probably ask for closer to the top, you'll ask for the bottom, and we'll meet somewhere in between. b) I expect to be fairly compensated for the value I'm providing to you and our customers and I see this offer as an indication of your expectations of the value I'm going to bring the team. c) I'm not overly concerned since I'm here because i like the industry, company, and role and i'll prove myself. That being said of course there's a basic requirement needed for the cost of living, plus up to a certain point it's going to make me have to really think about this... so I would hope you'll make me an offer i can't refuse and let's get started. something along those lines...
I basically agree with this...

Originally Posted by Hannerhan

I generally agree with that, except your point #1. Previous compensation is always relevant if you ask me.
I basically disagree with this, mostly for the reasons already listed above. Slightly different example to those listed above, a candidate may be willing to take a huge pay CUT to change industries or take on new challenges or whatever, in which case your previous compensation is not a consideration, it has been discarded toward the development of new skills.

Originally Posted by MasterOfReality

I have always been asked this, and usually get pressed for a figure when I answer with the usual 'market value' thing. Do the research before the interview, find out what other equivalent positions are paying and then add a reasonable but not too excessive percentage on top to give you room to move when it comes down to the one-on-one negotiations.
ya, when I am interviewing, I would push people a little past letting them get away with 'market rate'...I can't go to a client and tell them I will cost market rate, I have to tell them a price, and in essence it is the same scenario. As such, I'd suggest reading a bunch of newspapers, online job ads, talking to anyone you know in the field, or in recruitment, and framing your number in those terms...then you can go back and say 'X level roles in this industry have typically been advertised at $X in the past year, although this role requires more NOISE FOLLOWS' and use that as the way to frame the discussion.

 

[Hannerhan]

Originally Posted by JMRouse

You just proved why one should never give out their previous salary history.

But if you want to work for a company and they tell you they need your comp history, you give it to them right?

I just changed jobs and when the new company asked about my prior comp I just came out with it and gave them all the details. It just seems coy to me if someone isn't willing to say how much they have been making.

 

[Piobaire]

Originally Posted by JMRouse

I don't understand this line of thinking at all. If a company wants to hire me, they should pay me based on their budget, what skills I bring to the table and the market value of the position. My previous salary is irrelevant.

Right there is what I always based my answer on. I would simply say, "You have a budget, you have a number you want to bring me in it. Just tell me what it is and we can go from there." Usually worked fairly well.

 

[Jr Mouse]

Originally Posted by Hannerhan

But if you want to work for a company and they tell you they need your comp history, you give it to them right?

I just changed jobs and when the new company asked about my prior comp I just came out with it and gave them all the details. It just seems coy to me if someone isn't willing to say how much they have been making.

No I would not give that info out. All you are doing is giving them information that they can use to pay you as little as possible. It's part of the recruiters/HR rep's job to try and do so.

 

[Jr Mouse]

Originally Posted by Piobaire

Right there is what I always based my answer on. I would simply say, "You have a budget, you have a number you want to bring me in it. Just tell me what it is and we can go from there." Usually worked fairly well.

I find when dealing with larger companies this works out well. There is usually a salary tier set for the position and HR rep's generally seem willing to give that info out if you press them on it. Hell, a couple of times when I asked they were happy to give me the numbers.

 

[fredfred]

"I see this as a job with different/additional requirements and skills, so my past salary history doesn't really seem directly applicable. As for this job, I'm talking with a few different companies and I'm expecting their offers to indicate how much responsibility the job entails and how seriously they want me in the position. I think my skill set matches up with your requirements and I'd really like the job and I hope to get an offer from you" (optional: "If you make me a good offer I can start as early as March 1st").


(The thing to understand if they really want you, they will still make an offer. Giving them a number that is too high could prevent an offer. Giving them a number that is too low can screw you out of $$ and can also make them think, 'that low??? maybe he isn't as good as we think...'. So don't give them a number.)

 

[StephenHero]

"I have no demands. I'll assume my pay is an honest assessment of my work's value." This says you aren't driven by money and it will encourage the employer to proactively raise your salary before you have to ask, or else he risks losing you based on how unappreciated he assumes you will feel from any unfair offer.

 

[Jr Mouse]

Originally Posted by fredfred

"I see this as a job with different/additional requirements and skills, so my past salary history doesn't really seem directly applicable. As for this job, I'm talking with a few different companies and I'm expecting their offers to indicate how much responsibility the job entails and how seriously they want me in the position. I think my skill set matches up with your requirements and I'd really like the job and I hope to get an offer from you" (optional: "If you make me a good offer I can start as early as March 1st").


(The thing to understand if they really want you, they will still make an offer. Giving them a number that is too high could prevent an offer. Giving them a number that is too low can screw you out of $$ and can also make them think, 'that low??? maybe he isn't as good as we think...'. So don't give them a number.)

This is also a great point. I have done a lot of freelance work and I can tell you that people often judge your ability to do a job by the rates you charge. If you have too low of rates, they think you are not as good as someone with higher rates.

 

[imageWIS]

Originally Posted by Hannerhan

imageWIS, I'm interested to hear why you say that. In my experience, it's a lot tougher for an employer to get away with paying less-than-market in New York than it might be for companies in other markets. At least in my business which is finance/investments.
Well I wouldn't know with any accuracy regarding pay. However, you are incorrect that it is easy to switch jobs in NYC, in this economy. From marketing to sales, from retail to finance, its tough out there. To quote Rodney Dangerfield: "and members of the graduating class. I have only one thing to say to you today... it's a jungle out there. You gotta look out for number one. But don't step in number two. And so, to all you graduates... as you go out into the world my advice to you is... don't go! It's rough out there. Move back with your parents. Let them worry about it."

 

[Master-Classter]

what'd I miss???



sneaky, but sometimes I like to throw in a little "think about all we've been through and this whole long hiring process... you've finally found the guy you want, so why make me an offer i'd really have to think about?", or a "well think about if you were in my position. Of course this is a great company and role, I want to be here, but I have other options too and i expect to be here working hard so let's make this fair"

 

[Eason]

God damnit. Haste makes waste, I just accidently replied to a SG job with an expected salary in HKD instead of SGD. HKD is much lower.

 

[Matt]

dumbass