The Money Question -- Whatever You Do, Don't Lie!
Thursday, June 25, 2009 at 9:45AM When you’re sitting across from an interviewer and the salary question finally comes, it’s usually in one of two forms: “What are you looking for?” or “What’s your current salary?” Posts last Thursday and Tuesday talked about the “What are you looking for?” scenario. But how you answer the second question also tells quite a bit about the employee you’re going to be.
My favorite response came from a young guy I interviewed years ago. He had just a few years of experience and I had heard he was great. When I asked him his current salary, he was flummoxed. He actually had no idea. “$30M? $35M? $40M?” I asked. He sheepishly said that he’d gotten a raise a couple of months ago and hadn’t looked at his paycheck yet.
We’ve all read reports claiming “Salary” falls seventh (or something) on the list of what actually motivates people at work, but to interview a candidate who embodied that was great (and kind of funny!) Other things were clearly more important to him. (Status update: he was recently tapped to run a new division of a large, international company and I bet he still has no idea what he’s earning).
The best way to answer the question is directly, honestly, and without apology. Some candidates start to explain: “I know that’s a lot, but …” which suggests you don’t think you’re worth it. The key thing to keep in mind is that companies generally know salary ranges for jobs relevant to their industries and if they suspect you’re not telling the truth, they won’t trust anything else you’re telling them.
For example, Company X here in town hires candidates directly out of school and pays them all the exact same salary for the next several years (merit raises happen later so for the first four or five years, everyone with a certain title earns the same salary). I know this. But often the candidates don’t know that I know this. I take a candidate out to lunch and here’s how the discussion goes:
Me: You seem like you’re doing so well at Company X! Have you been happy with your compensation as well?
Candidate: Pretty much so. I’ve been doing OK. My last raise brought me to $52M.
Me: Really! That’s amazing! Congratulations!
Candidate: Yes, I was pretty happy with it.
Me: You know, I’ve talked to quite a few folks at that company over the years. 15 years, I think. And I’ve never heard of someone at your level with that salary. Usually the salary with your experience is $42M. In fact, I thought Company X had a pretty strict policy about paying everyone the same at your level. Has that changed?
Candidate: Ummm…. (sips water).
Me: You know, if you’re interested in making a move to better your income, we can talk about that. Is that one of your motivators?
Candidate: (full confession ensues including apologies for trying to mislead me, and usually divulging an incredible need to pay off debt, student loans, or to quit working a second job to get by, and explaining that someone he trusts told him to up his salary in hopes of a better offer elsewhere).
I understand all of these reasons (although it makes me crazy that someone gave him such bad advice). Because these candidates are generally pretty young, I can cut them some slack and we can move forward together with a more honest dialogue. But if the conversation had happened that way with one of my clients during an interview, I would have gotten a phone call later: “Gillian, the candidate is lying about his salary. How can I trust him about anything?” And how could I disagree?
Negotiations,
Salary