How To Discuss Your Prior Salary in a Job Interview

When looking for work in a corporate setting and you're asked 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 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 some may not 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.

And if you're low-balled in a job offer, but confident an employer really wants you, it may be possible to convince them to pay more AND bump you up into a higher pay range—to avoid starting a new job at the top of your range, potentially setting you up for a lower than hoped for first raise. 

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