Should you disclose your past salary?

When prospective employers request a salary history, they tend to put themselves in a better bargaining position when negotiating pay. On the one hand, they want to ensure that you are in the right range for them and exclude those who earn too much or too little; on the other hand, they use the salary record as a gauge to determine your market value.

There is no single best answer to this question. In general, you should avoid disclosing your salary history if possible, but there are times you may risk losing your ideal job. So you will need to use your judgment in each situation.

If prospective employers persist and your salary history is compatible with their range, then there is no reason to avoid this topic. But you will need to do some preliminary homework to make sure that your salary is in line with the employer's offer package.

If you expect a significant pay increase over your last job, especially when you are applying for positions that have broader responsibilities or in a different industry that pays better, when you provide your past salary information, you give up your negotiation advantage. State that your salary history is industry standard, but is not relevant to the job you are applying for; emphasize that you would like to be valued by what you can contribute to the company rather than what you made in the past; convince the interviewer what you are interested in most is a good fit and salary is always negotiable. Then steer the conversation back to your skills, abilities and the value you can add to the company's success.

If your diplomatic approach does not work and the prospective employer makes it clear that you will not be considered without your salary history, then you need to reconsider whether this is the type of company you want to work for. If you decide this is your dream job and you want to join the company anyway, then provide a range of your total compensation rather than a specific amount. Total compensation includes salary, fixed and variable bonuses, housing allowance, training and development support, health insurance, paid leave, retirement programs and so forth. Be honest. Employers may verify your statement and integrity always pays.

(Contact yangning@chinadaily.com.cn for questions and career advice)

Contributed by Jennifer Zhao, consultant of Career Development Center at China Europe International Business School

(China Daily 09/27/2011 page14)