The one thing you should never
disclose to a potential employer.
With automated technology, privacy
concerns abound. Employers often force applicants to go through an
online process, during the course of which they ask for information.
Some of this information is reasonable, some is not, and some things,
you just have no choice if you want to work there.
Asking your name, address and relevant
work history is completely reasonable. However, employers also ask
for things that are not reasonable. There are three common items
which particularly stand out, in my opinion-Social Security Number,
Driver's License/I.D. number, and current salary.
So, which ones to disclose? Well, for
starters, the original Social Security Act specifically stated that
this number is never to be used for identification purposes.
You can take a moral and ethical stand, but you will lose. This
fight was lost decades ago, in the days of our grandfathers. A wise
person once advised me “pick the beaches you are willing to die
fighting for”. This fight isn't worth it. Give them your Social,
if you know it is a trusted site.
So what about the Driver's License or
State I.D. Number? This is another fight you may as well abandon.
Companies use this to verify your legal right to work, your credit
history, and criminal history as well. At least these are rational,
reasonable, and responsible things for a company to ask about. The
fight isn't here either.
That leaves the one thing you should
never disclose. Your current income/salary history. This is private
information, and believe it or not, has nothing to do with any offer
they may choose to make. Do they ask how much money you have in the
bank (broke people steal)? Do they ask your exact birthdate (age
discrimination)? How about sexual orientation (Spousal/partner
benefits)? Preferred method of birth control, if any (Kids are
expensive on health insurance)? Man or Woman (Lots of reasons they
can't ask)? Marital Status (Single, young males are cheapest on
health insurance)? Number of minor children (Parents miss a lot of
work to care for sick kiddies)? Do they/can they ask?No, no, no, no,
no, no and no. However, all of these things could affect your cost
to them.
So why do they want to know your
current income? Primarily so that they can screw you. Knowledge is
power. They already know what the job is worth. They already know
what the budget for the position is. Now all the employer needs is
your minimum number.
Let's say that your current salary is
$52,000 a year. The position that you are seeking is a significant
boost, and has a budgeted cost and range at $55,000-$65,000 a year.
If you tell them that you are currently earning $52k, they will offer
you bottom of range ($55k). You will accept and be thrilled with
the '$3,000 raise'.
Let's
see what that '$3k raise' cost you. Assume a 40 year old who keeps
this job until retirement at age 67. 27 years times $3,000 equals
an impressive $81,000. If you add in an average of a 3% annual
salary increase, you get $125,800.
However,
the middle of the range in this example is $60,000, a reasonable
offer if you only keep your private information private. That gives
you an $8,000 'raise' annually. With the same 3% salary bumps, your
increase would be $335,500. This is a difference of about $210,000.
The
financial example above should demonstrate why you keep your current
salary private. I should also note that this does not automatically
make the person you are negotiating with evil or out to get you.
Rather, that person has their own job to do, and an obligation to get
the best possible talent for the lowest possible cost.
A
future post will suggest some negotiating strategies.
Good
Luck and best wishes,
Chris
Links to my work, “Beyond a Career
Crisis”:
Kindle Edition
Paperback Edition
No comments:
Post a Comment