How To Discuss Your Prior Salary in a Job Interview

When looking for work in a corporate setting and an interviewer asks about prior salary, what's the right answer?

 If you're not working with an independent recruiter, who presumably vetted you for the role in advance, I believe there's only one sensible answer, and it's a question: "What's the salary range for this position?"

Most corporate jobs have very clear salary ranges and other budgeted compensation components, like hire-on bonus, performance bonus and incentive stock options. Which can be generous, but generally

 non-negotiable, and rarely discussed up front in any detail. Sure, you can push on the numbers and possibly move the dial a bit once it's clear they can't live without you, but disclosing salary figures in an interview rarely does you any good, and may even knock you right out of the running: If you made more than they plan to pay, their thought is you'll never be happy walking into a pay cut. If your number is below their target salary, you've just undercut your negotiating position, big-time.
  
My advice is do your salary research in advance for your field in your area, so you're not applying for roles that can't possibly meet your salary requirements. Then when they drop the salary question in the interview, your "question" indicates that you understand how the game is played.

If they actually answer, you now have specific info for a fact-based discussion. But until you're certain you're in a position to negotiate, keep the salary comments theoretical. And on the off chance that their numbers are below your expectations (and you have other options), you can either opt out of future interviews—if invited back—or, if everything about the job is great but the pay, you now have little to lose, so explain your surprise and make your best play to convince them to pay more and re-level the job.

What?

Everyone knows that raises are linked to performance. What many don't know is raises are also linked to where you are in your current jobs' salary range. If you're exceptional AND near the bottom of the salary range, you have lots of headroom to make more money and still remain within the overall range. And you will likely get a higher percent increase. If, however, you're rated exceptional AND are near the top of the range, your new boss may have little choice but to give you a smaller increase, or explain to higher ups why you're being paid above your job's pay range.

So don't join a company at the top of a pay range—Unless you get promoted you can quickly top out. It's better to start a new job below the mid point (first quartile and you're golden!).

And if you're low-balled, but confident an employer really wants you, it may be possible to convince them to pay more AND bump you up into the next higher pay range. Because just negotiating a higher salary within the existing lower pay range could put you at the top of that range. If you're good that's bad.

Salary surprises can undermine anyone's motivation. Keep this in mind as you plot your next career move.