“What are you making today?”
For years, it was one of the most common questions in recruiting. Today, it can be a complicated question for both candidates and employers. Salary-history laws vary across the country, and candidates are understandably more cautious about sharing their compensation.
But here’s the problem: being too guarded about pay can be just as counterproductive as sharing too much.
So, how should you handle the compensation conversation when you’re considering a new opportunity? The answer isn’t necessarily about revealing what you make today. It’s about how you approach the conversation along the way.
It’s Not About What You Make Today
Before you have your first interview, keep one important thought in mind: Most reputable companies are reputable because they treat their employees fairly and approach their hiring decisions in good faith. They aren’t looking to take advantage of you, and a conversation about compensation shouldn’t automatically be viewed as a negotiation or a test of who has the most leverage.
You basically have three choices when it comes to compensation. You can share where you are today as a starting point, share what your expectations are, or ask the company about its range for the position. Either way, it’s critical to be open and genuine about salary, while making it clear that compensation is only part of the decision. The goal is to build trust through a two-way conversation and determine whether the opportunity, the role and the overall package are right for both sides.
Look Beyond the Paycheck
Compensation matters, but it shouldn’t be the only factor in deciding whether to make a career move. A higher salary doesn’t automatically mean a better opportunity. A longer commute can consume hours of your week, a bigger title means little without the authority or resources to succeed, and a substantial raise can lose its appeal if you’re walking into a poor culture or limited opportunity for growth.
Before making a move, look at the entire opportunity. What will you be responsible for? Who will you report to? What authority will you have? How will success be measured? Most importantly, will the opportunity put you in a better position five years from now?
In the end, the most important consideration is this: success isn’t always measured in dollars and cents. The best career moves are the ones that put you in a position to grow, contribute and thrive.
You Can Still Negotiate
Being open about your compensation expectations doesn’t mean you’ve given up your negotiating leverage. The initial conversation is about determining whether there is a potential fit. The real negotiation typically comes later, when the company has decided you’re the person it wants to hire.
At that point, the conversation can focus on your qualifications, the responsibilities of the position, the value you bring and the overall compensation package.
I’ve seen companies change the title, responsibilities and compensation of a position when they found the right person. The objective isn’t always to find the least expensive candidate. It’s to find the right candidate.
If your experience and expertise bring greater value to the position than the company originally anticipated, there may be room to adjust the opportunity. The first number discussed isn’t necessarily the last.
Don’t Be Closed-Chested. Be Thoughtful
Compensation is just one part of the journey. Finding the right opportunity is a process, and when both sides are open, honest and build trust along the way, it becomes much easier to sit down at the end of that process and work out a deal that makes sense for everyone.
Ultimately, the best compensation conversations aren’t about what you made yesterday. They’re about what the opportunity is worth, what you can bring to it and whether both sides can reach a point where they feel good about saying yes.