Are You Screened Out by the Salary Question?

Posted by Kenrick Chatman at 6th August, 2009

money Are You Screened Out by the Salary Question?

In my pre-MBA sales career, I did not like it when prospects asked for the price of a product/service; before I had the chance to determine which product/service was ideal for them and to demonstrate the value of this particular offering. As I result, I delayed answering the question by stating, “Well it depends. Until we discuss your needs and interests, I have no way of knowing what we may recommend or what it may cost.”

Likewise, one of my pet peeves during my current job search is when potential employers persistently demand my previous base salary – since I never provide my salary expectations. Then use this information to screen me out when my previous salary exceeds their desired salary range.

I have heard one of the main reasons employers ask the salary question early in the process is to make sure potential candidates fit within their desired range; since it may be a waste of time to interview “under qualified” and “overqualified” candidates whose salary expectations are below or above this range, respectively. The problem with persistently demanding that potential employees provide an answer to the salary question early in the interview process (like during the phone screen) is that potential employees lack sufficient information to accurately answer it.

For example, total salary compensation can consist of a base salary, bonuses, profit sharing, and other non-cash benefits and perks. Likewise, a salary with a higher base component does not guarantee that it will be the best total compensation when you take the other components into consideration. When you also consider factors such as the stability and future of the company, growth opportunities, company culture and values, and work-life balance; an offer with higher total salary compensation may not be the most attractive one.

However, as job seekers we know we cannot ask about benefits, salary, and etcetera early in the interview process; since it may place us in an unfavorable light with potential employers. Likewise, employers should not screen out potential employees strictly on salary expectations without taking other factors into consideration.

For example, early in my job search I made it to the final round interviews with a company for a position that required 4+ more years of experience than I had. Before the final round interviews, I had to fill out an online application. After conducting research using PayScale and other salary sites, I decided to provide my previous base salaries. Less than 15 minutes after submitting my application I received a call from the head of HR telling me in a frantic voice that my previous base salary exceeded the desired pay range for the position. I told her that my previous pay does not represent my salary expectations.

When I arrived to the final round interviews, it was obvious that they were not interested in interviewing me. The individual I was supposed to interview with told the receptionist to find someone else to interview me; as a result, my interviews started 45 minutes late. During these interviews I was told that the position required 4+ more years of experience than I had and was immediately asked, “How many years of experience do you have?”

On a few more occasions, I have been asked to provide my previous base salary since I consistently delayed directly answering the salary question by stating, “Until I have the chance to learn more about the company, position, and etcetera… I cannot provide a salary range. However, I am extremely confident you will make a competitive offer (if we reach this stage of the process).” Before I provided my previous base salary, I told the screeners that we were comparing apples and oranges (since my previous position was and still is different than corporate ones) and other factors needed to be considered such as work life balance when considering a potential offer. After I provided the information, they all stated wow your previous salary exceeds our desired pay range and I was not invited to proceed in the interview process.

Once again companies should not screen potential candidates out if their previous base salary is higher than what they want to pay without taking other factors into consideration. For example, let’s assume the company wants to pay a base salary of $100K for a position and the previous base salary of an applicant is $125K. Let’s also assume the other components of the salary compensation are the same.

The position that pays $100K has minimal travel, a merit-based culture with minimal politics, stability, and an excellent work life balance (with an average 40 hour work week or $48 hourly rate).

The previous position that paid $125K required weekly travel, had a culture driven predominantly by politics and less merit; low stability due to high pressure, political driven up or out policies; and a not so good work life balance (with an average 60 hour work week or $40 hourly rate).

Would you decline the $100K base salary position? Probably not.

In conclusion, employers should not screen out potential employees if their previous base salary exceeds the employers’ desired base salary range without taking other factors into consideration. Let me know if you agree, agree to disagree, or disagree.

Play the audio version of this post. | Download this episode (right click and save)

If you missed it, you should listen to “How to Work with a Headhunter.” You can listen to the archived version by clicking the player below. Mark Haluska, the expert guest, shared:

1. A brief overview of the recruiting industry
2. How to successfully implement working with headhunters in your job search
3. How to market yourself as an attractive candidate to headhunters and select the reputable search firms
4. How to reduce your exposure to current job loss, being tracked down, identity theft, and not acquiring your dream opportunity

If you like this episode, I encourage you to visit www.blogtalkradio.com/thecareercatalyst. Next download the previous three episodes, mark this show as a favorite, subscribe to our upcoming shows, and become a regular listener.

Play Episode IV: How to Work with a Headhunter. | Download this episode (right click and save)

Also tune in to Episode V: “How to Effectively Use Job Boards” with expert guest Steven Rothberg, Founder and CEO of CollegeRecruiter.com.

Steven will discuss how to effectively use job boards to land your dream job. If you cannot participate live in next week’s show, feel free to send your questions to
kac@kenrickchatman.com by Tuesday.

Remember the wisdom of a crowd is richer than the wisdom of a few. So actively participate in the free online community at jobradiousa.com and encourage fellow job seekers to do the same.

Recommended Articles You Should Read

Sphere: Related Content

Category : Career / Talk Shows

Kenrick Chatman

Thanks Jennifer. I just created a blog post for a U.S.News & World Report titled "5 Ways Companies Mistreat Job Seekers."

The salary screen question was listed as one of the ways.

"Refusing to share their salary range, but asking you for yours:

Employers know roughly how much they're willing to pay; there's no reason not to share that info, other than that they're hoping to get you for a lower price. But that's lame: If they lowball you now and you figure out later that you're underpriced for the market, they risk losing you over it. They should tell you the range they expect to pay and put an end to all the drama and coyness."

Jennifer Wilson

All these comments have valid points coming from the experience and positions and angles everyone is coming from. I have been in HR Solution and Staffing Consulting for over 20 years. I am in transition of employment since April. Getting back to Kenrick initial point, When you aren't in the negotiation phase. You are filling out a application on-line and the mandatory field says salary requirements. I feel being paid for my experience should be noticed. However, what I have been doing is if the job requires 5 years experience I know the range that is acceptable for that experience level. The other point is we are like real estate right now. Its a "Employers Market". I know my low end that I can afford to negotiate from and take all benefits into consideration. I think Kenrick has a point when you are immediately being screened on salary and not experience that you bring to the table..

Bruce Calvert

Another thing that enters into the salary equasion is relocation. Since I've lost my job, we have sold our house. I'm willing to relocate for my next job. If you are moving from a place where the cost of living is high, that can screen you out based on your high salary. On the other hand, if you are moving from a place where the cost of living is low, a company in New York or Washington DC may frown on your low salary.

Personally, I'd be happy to take a salary reduction if the company would provide relocation assistance.

Of course, companies say that they want to hire the best talent. But when it comes to salary review time, they only want to pay the "industry average". But that is another discussion entirely...

Kenrick Chatman

Debra, I completely understand.

Some of these companies are probably the ones complaining about a shortage of top talent; when they are screening out top talent and superstars predominantly based off of base pay.

Companies have to remember that you cannot go and buy a high-end Lexus for the price of a Honda Accord. For the most part, you get what you pay for.

Debra Perlow

As a "restructured " employee currently in the job market, I am facing the issue discussed here. I was a highly paid chemist in the pharmaceutical industry whose marketability is drying up fast in our current economy. I am looking to find a job in a related area (very much) of interest to me that doesn't inherently offer high salaries. I am at a point in my life where I can afford the salary cut and am happy to do so in exchange for the exciting new challenge. My resume and experience show that I am offering exactly what the HR people should be seeking but I can't seem to get past the salary screening. I have followed up with emails explaining that salary is not an issue but they won't even give me the opportunity to meet with them. They are losing out on the chance to get my experience and intimate knowledge of the customer for their company.

Kenrick Chatman

Steve,

Fair enough. I will have to disagree with your assessment.

Potential candidates who are ideal for the position should be brought in to interview. If they make it through the entire interview process, a competitive offer should be made - since the company was also able to acquire more information about these candidates.

If you are screening out base on pay... then your company could be making the same faulty decisions that some companies with no clear strategy (other than reducing cost from cheap labor, etcetera) make when they outsource/offshore operations to developing countries. Then realize it was a mistake (once revenues and profit start to drop) and bring operations back.

You ever heard of the adage, you get what you pay for? Instead you should be measuring the value and potential ROI you can acquire from a potential hire.

I would be interested in interviewing candidates with similar levels of experience but whose salary is higher than the others. I will be curious to find out why their salary was higher. Why? Because I am looking to hire superstars. Probably in the majority of the cases, they were rainmakers and producing great ROI and were compensated higher to keep them away from the company's competitors.

Steve, let's switch roles. You are the HR professional looking for work and the person I used in my example in the blog post. Your previous base pay was $125K and you applied for another HR position.

Once the head of HR discovered that your base pay was higher than the $100K her company was willing to pay, you were automatically screened out since you appeared to be "overqualified" - without taking the other factors (bonuses, fringe benefits, work-life balance, company culture and stability, and so on) into consideration. Would you still agree with this company's decision? Probably not.

Likewise, if this is the practice you are employing in your firm...you should change it because it does not make sense.

If you want to save time, just list your desired salary range in the job requisition...At least it should prevent the people who cannot live with a pay cut from applying.

Steve Pangione

As an HR professional with over 15 years experience, I disagree with what has been said. Gauging a person's salary expectations is very important in the process, for the reason you stated: why waste my time and yours if you are seeking a base salary that is clearly way outside of the range I have been given? Some examples:

First: Titles vary from one company to another. Small companies hand out big titles to folks who, if in a large company, would never garner such a title. My last title while working at a small firm was Director, and I recently interviewed for a Manager position at a very large company, and was told I didn't have enough experience. 15 years, including 5 at the Director level, doesn't qualify me for a manager-level job? Not in the giant corporate world.

Second: I've mostly been in software. We advertise a developer position with somebody who has knowledge of some programming languages. Depending on their level of knowledge, the salary for somebody with this skill could range from $45,000 for a novice, to $145,000 for an expert. I know what level I'm looking for, but do you know what I'm looking for? Since people often "massage" their resumes, looking at their prior roles and responsibilities doesn't often tell you where they are in the range, sincce they may exaggerate and/or downplay their expierence just to get in the door. You have to ask, as salaries in this field are often, but of course not always, reflective of a person's knowledge level.

I think it's critical that you know how your position is valued in the marketplace. And, that you also know what your "bottom line" compensation is. People who say "money isn't important" are giving you a bunch of hogwash. Of *course* it's important, how else are you going to support yourself and/or your family, and buy groceries, and fill up your car, without a salary that will keep you in the lifestyle you wish to live in? Iif you were making $125,000 at your last job in total compensation, and paying rent or a mortgage based on that, would you *really* take a job that gave you a total target compensation of $50,000? Doubtful, but you may not know that's the job level for the position you applied for unless you are asked for compensation comparison.

My bottom line: As somebody wrote above, you can't fight city hall, but you can make your flexibility clear. A line I use all the time when asked goes like this: "My last salary was $XXX,XXXwith potential for a XX% bonus. However, I understand this role may be very different, and the compensation package can significantly influence my decision, therefore, the minimum total compensation I can live with is $XXX,XXX."

This tells the recruiter that you know your value, which is critical, and that you are flexible, an also gives a realistic expectation as to whether you'd fit in the role.

For people who say if you go lower than the salary they're willing to pay, they will offer you less money, I say that has not been my experience. I, too, know what a position is valued at in the market, and I'd be crazy to give somebody $50,000 because they said they could live with it, when I know the job is valued at $75,000: the employee will figure out soon enough they could make significantly more, and would be a short-timer in the job, just keeping their your way, which gives no benefit whatsoever to the company, or within 6 months will be clamouring for a huge pay increase, which is practically impossible to grant once somebody is in the role.

My bottom line: know what you're worth, know what you can live with, and let the recruiter know both sooner rather than later, so you both know whether it's worth the time and effort to keep discussions ongoing.

Kenrick Chatman

Thanks for the comment Leeann.

Leeann

I have been a recruiter for 13 years and I absolutely agree with you. I NEVER counted the candidate out without finding out the other components of their previous positions. All of the points you mentioned are important and should be weighed heavily for each candidate. I wouldn't even give the hiring manager that information and I was adamant in my requisition meetings with the hiring manager that I and I alone will handle the salary questions. They were not to ever ask that question. If the candidate is the right fit in experience, education and personality then I discuss in detail with them what their expectations are for a compensation package only after they have interviewed. Now if its obvious that they are overqualified for the job, I would have that discussion prior to the interview so as not to waste the candidates time either, but I would give them as much info about the benefits/bonus structure etc. and then let them know that the base salary will probably be lower and ask would they still be interested in interviewing. If the candidate still wants to interview, then I would have that discussion with the hiring manager after the interview to let them know their options. It was my job as a recruiter to weigh these options and find what works best for the company as well as the candidate and make the best match. Professional Recruiters who know what they are doing won't ask the question of previous salary as a way to screen people out. You unfortunately came across recruiters who did not know how to handle the situation correctly.

Kenrick Chatman

Would you agree that it does not make since to screen a person out strictly based off of base pay (w/o considering the other forms of compensation, work life balance, growth opportunities, company culture, etcetera)?

Phil

Salary discussions often turn this way.

Many firms and HR departments handle salary discussions this way. It is often the used to qualify a candidate.

Your comments are insightful to provide. This practice may continue for at least the short term. They are pressed for time and probably many more reasons.

Here is my advice: Do not fight city hall. If you feel sharing a certain number will bump you off the consideration list, then be careful about providing that number. GIVE PEOPLE WHAT THEY WANT, AND THEY WILL GIVE YOU WHAT YOU WANT. Remember, the prevailing practices rule, so do not try to buck the system.

Hope this helps.

blog comments powered by Disqus