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- Salary Negotiation Post - Retraction
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- The Fashionomics of Retail Begging
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Salary Negotiation Post - Retraction
Tuesday June 15, 2010This post has been retracted.
A message from DailyWorth founder Amanda Steinberg:
When I started DailyWorth, I had a lot of goals in mind. Among them was the desire to help women become great negotiators by learning the tricks of the trade. Another was to address money taboos head on, even if the discussion became controversial. Finally, we vowed never to be boring or formulaic.
When we released this post, we knew it would spark heated debate. And it did. We've heard from a number of HR personnel in the DailyWorth community that even slight salary history inflations are illegal and could jeopardize your job application.
Update from New York Times coverage of this situation: "While inflating your salary may not be a criminal offense that can land you in jail (assuming you don’t inflate your salary under oath or under penalty of perjury), it still can be a civil law issue. Specifically, according to Della Barnett, a plaintiffs’ employment attorney in California, “Affirmative misrepresentation of a material fact can be construed as fraud” and your potential future employer could sue you for it."
Many thanks those of you who constructively and thoughtfully shared your opinions with us.
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A Little White Lie in Salary NegotiationEllen O'Hara is a book editor in New York City. |
My recommended approach is 100% honesty and if your previous salary was too low, explain how you were compensated in *other* ways by your last employer, for example: The opportunity to prove yourself. Now that you HAVE proven yourself, you can charge the higher rate.
When corporations are trying to play us every day, I think it is a-okay to play the game yourself.
p.s. I don't think DailyWorth is advocating one way or the other -- they're asking us to have a frank conversation about a very important topic - once that might be the difference in you being able to afford your life and retirement or not.
I already know even the 'high-end' employers in this town won't match what I made at my last jobs (in a different area of the same state) so I don't even ask for the $13.00 per hour I was earning in 2004-2005. I'm happy if the job pays over minimum wage ($8.40 per hour here in Oregon)
The last time I made a leap, I developed a grid of salary, benefits, bonus and other areas of compensation. I asked the recruiter to help me fill in the blanks and understand not only what my new benefits would be like, but also my total compensation. That way, we were able to come up with an attractive salary increase plus a signing bonus.
If you wanted to inflate your salary, one approach may be (assuming it's in any way accurate): "I currently make X dollars, but I have an annual performance review coming up shortly and based on past experience, I expect to get X dollars as a raise."
They will usually try to tell me that we can't go any further in the process until I tell them what I make currently, or they say that I'm going to have to fill out an application eventually and then I'll have to tell them. Whatever. It's a sham. If they want you then those little rules go out
If you tell them what you're currently making then you are just demonstrating to them that you're not a very good negotiator.
One strategy that a participant had was factoring ALL of her various perks into her compensation number when asked her current salary. If her company had a gym reimbursement policy of $1,000/year then she would factor that into her salary. Same for travel reimbursement.
I would tread cautiously advising readers to act unethically.
As for expecting a raise, it depends on whether you're moving up or sideways and whether you were fairly compensated in your last/current job. Don't forget HR depts always have a "range" for positions - you might have started at the beginning of that range and have proven yourself worth more than that if you're very competent at what you do. Always tell the hiring manager what salary range you're looking for, and don't shoot too low. I've never had them turn me away, even if their budget is lower than what you're asking for.
It took me 5 years before I got back to the salary level that I was at originally. Never again. The last time I changed jobs, all I said was the range that my salary was in - high 40's - rather than the specific number when I was asked. The salary offer was about $10,000 more than I was earning at my old job. That was enough to convince me to change jobs. Next time, I will do the same thing.
To start a new job on a lie is a terrible idea. Not only would it have the potential to undermine your entire relationship if your new employer discovered that you lied, but think about what it does to your view of your self. Do you think your value is so unrecognizable that others can't acknowledge it? You should be proud of your contributions and ability and highlight those for others who are making an evaluation of your worth. And do you really think so low of this new employer that you've already concluded they won't be able to recognize your value? If so, are you sure this is the company for you. And if this really is a company you want to work for, they're likely to speak with your current employer and verify salary information during the reference check, you could undermine the entire opportunity.
It never hurts to ask, so long as you keep it polite and don't make it a "I need more money or I'm leaving" type of conversation (unless you're ready to leave).
2nd- how do you ever plan to be properly compensated for a job if you tell someone "I only make $5" - umm, hello?
this is why WOMEN make 75% of what men make. it's not that we aren't as qualified, it's that we don't ask.
PLEASE PLEASE PLEASE read this book and get over yourselves for thinking that you are being dishonest. [Women don't ask : the high cost of avoiding negotiation-- and positive strategies for change by Babcock, Linda]
(BTW, the company will always offer you the lowest amount they want to pay you EVEN THOUGH they have it budgeted for much more - are they lying too?)
really, where are you all getting your information from? an future employer can only verify that you have WORKED for the organization (or that you were fired) and that you can work legally in the US.
If YOU GIVE THEM PERMISSION they can check your salary history (based on IRS records) & perform a credit check.
If I had been honest about my previous salaries, I would never have advanced to where I am at today: paid exactly what my male counterparts are being paid for the same work. I did what I had to do because a few jobs ago, I was MANAGING a man who was making more than me! (I only found out after we quit as he was my friend and he felt bad about it.) I went on to increase my salary by $15K that year. And guess what? It was right on par with the average salary for the position.
The truth is ladies, if companies don't want to pay you what you ask for, they won't hire you or extend an offer. That's fine by me. If I am upgrading my job, I will wait until I find a company that is willing to pay me what my skills and experience are worth. If I am unemployed and desperate, yes then I will for sure take that into consideration (as I have done in the past) and take a lower salary for the right job.
But honestly, you will never get anywhere if all you advance is $5000 every time you switch jobs. And what is that? Every few years?? You'll hardly keep up with inflation! This is exactly why women are SO underpaid!
Oh and for the record, no one has EVER checked on my past salaries. I'm not saying it won't be done, but it's never happened in my industry.
But really, why does it matter? I would never switch a job unless I felt as if the new one offered me better compensation. And so I let the hiring manager know what type of salary I would be expecting in order for me to work for them, period. And I come prepared to explain why I'm a candidate who is worth that much. If I was getting hired doing the same thing then I would think my years of the experience at my last job made me worth more, and I should be making at the higher end of what people make in that position. Besides--how much money does the company save by hiring someone who doesn't require training?
If lying is your only option, I could see using it to secure yourself a better salary. I don't think you'd be condemned to a life of dishonesty for doing so. But why lie if you don't need to? And I don't think it should be confused with assertiveness. Assertive people ask for what they want.
Secondly, here is what I know from years in the fashion business, the way to get a raise is to switch jobs and state your salary requirements. It is not anyone's business to know what you are currently making and going back an forth is part of the game.
I think taking the "what do I want" approach and asking for it is the healthier, more sustainable and most long-term-healthy option.
It does take assertiveness but you'd be suprised at how rewarding this can be. And if the job you're going for states a salary bracket, ask for the higher end of it: it's already been budgeted and approved so all it takes is someone to go and grab it.
Cheering for all women who go in and negociate their salary, that's the way forward.
I find it appalling that anyone would advocate lying for any reason. If you want to make more money, tell the recruiter in the interview that you want to make more money. If they were willing to pay $5K more than your inflated salary, then they were willing to pay $10K more than your actual.
Companies hire to a budget. They don't just throw a dart and decide what to pay based on what the applicant says. They need to be concerned about keeping in line with market salaries and maintaining internal equity within their own walls. Your "little white lie" did not make them change the budget for which they had set for this position. It did introduce a risk that you could be terminated for falsification of information during your interview. I would expect greater integrity from my employees.
When I started DailyWorth, I had a lot of goals in mind (many of which still hold today). Among them was the desire to help women become great negotiators by learning the tricks of the trade. Another was to address money taboos head on, even if the discussion was to become controversial. Finally, we swore we'd try not to be boring or formulaic.
When we developed this post, we knew it would spark heated debate, but we didn't realize how negatively this would be received. We've heard from a number of HR executives in the DailyWorth community that even slight salary inflations are illegal and could jeopardize your job opportunity, and to that extent, we will be retracting this post completely.
Unlike certain TV personalities you may watch, we willingly present ourselves as flawed human beings that will make mistakes from time to time - this certainly will not be the last.
To that end, thanks to those of you who constructively and thoughtfully shared your opinions with us. I'm pleased that so many of us are now savvier and smarter on the subject of "salary history" in the context of negotiations.
I would guess that all of these 'cannot tell a lie' commenters above are probably the same people who walk into a car dealership and buy a car for the asking price. No wonder so many of us women are underpaid. In salary negotiations, playing it straight doesn't make you a paragon of virtue...it makes you a SUCKER.
They wouldn't provide me with the amount the highest paid employee in the position is currently making, now would they.
there is no reason to answer the question of what you make today, you are well within your rights to offer a range. I would love to see the legality of this question debated here.
Thanks
I agree that it is neither ethical nor legally prudent to lie on your job application.
Yet closing the gender wage gap is critical, and empowering ourselves as women to ASK for a higher salary is an important first step. Thank you to your author who encouraged us to do so.
BUT the research on salary negotiations is more complicated to just tell women to ASK for a higher salary. Research finds that even when women ask, they can get less than men (Rynes and Gerhart (1991(found that by asking, men's salary increased an average of 4.3%, while women's only increased 2.7%). Research also finds that women are penalized more then men being aggressive in negotiations (see e.g. Bowles, Babcock, and Lai, 2007).
So, while as women we should ASK for higher salaries, I'm curious to hear more about strategies about HOW to do so effectively.
I specialize in the insurance industry and I can tell you women make comparable salaries to the men...it's their expertise that counts. They can also rise to the highest corporate levels, receiving compensation packages that are the same as men. It's my business to know what those salaries are to help my negotiations stay fair. A company won't work with me if I get ridiculously high and they know they won't be able to keep a candidate if they are ridiculously low.
My suggestion is this ..and it is one I offered to my previous employer when I joined the firm: I told him I wanted about 20% more than he offered, but I would work at the amount he offered for 30 days. If at the end of those 30 days I had not proven I was worth the higher amount we would leave my salary at the original amount. If i proved I was worth the higher amount, he would change my salary RETROACTIVELY and permanently to cover the previous 30 days.
Ladies, I got my raise, my difference in pay and an instant promotion from the rather boring job he had hired me for. Try an honest negotiation like that and you may wind up with more than you asked for and be able to sleep with yourself.
This has been a great discussion, food for thought.
That being said, why is it HR's business what you've made in the past anyway? I'm happily self-employed so it's been a long time since I had to deal with this, but would it jeopardize the interview if a person countered with something like, "I make high $40's and I very much want to be on par with the national average of $52k." If I were interviewing someone to hire, I personally would be fine with that response.
Here's another wage gap to consider: people who start their careers during a recession are PERMANENTLY at a salary disadvantage to those who started their careers during boom times. I can't help it if I started my career during the recession of '90/'91 — yet when I was working regular salaried jobs, it became normal for me to make the same as my co-workers with years less experience than I had, and sometimes up to $10 per hour less than those who were just a few years older than me.
It seems obvious that basing one's salary at a new job on what you were making at your old job is the reason this occurs. Negotiating a salary based on current market rate seems a whole lot wiser, especially for those of us who started our working lives during an economic downtown. But will sticking to your guns on this issue during an interview jeopardize your chances at getting the job?
I'm so glad I'm self employed. Just writing about this makes me feel victimized.
In fact most companies are not about to tell a competitor what they are paying their previous employee.
It is possible to negotiate if you have done your homework about the company you are interviewing with, express your enthusiasm for winning the position, and can demonstrate that you have a record of achieving goals for your company.
Also, going to Salary.com and websites like this can arm you with the appropriate salary range for the position you're interviewing for.
I have been "low balled" before on interviews and I will write- off a company that would try to hire someone for far below the market rate for the skills and experience they have advertised for.
That said, I agree with most of the comments at NY Times that say that asking for previous salaries should be illegal and that you should decline answering. It would NOT be unethical to say I am worth $X and this is what I would like.
Thank you! We often have and will continue to publish first accounts, the raw details, for readers to learn from. You're on the money with that lingo. I think I'll add it to today's email, which is meant to be funny, but I bet could be misconstrued.
1) I personally know Amanda, and she is a VERY ethically minded woman who is a little horrified to have stirred up controversy about this (though frankly, I think a little controversy can be good for business).
2) There is a difference between lying and negotiating, and it is all in the details. what I mean is, if you are making $45K a year at your current job, and an interviewer asks what your current salary is, I think it is fair to say "I currently earn in the high 4s, but I am interested in increasing my salary to the low 5s". I think saying "I make $50K" is probably not a great idea, but I don't think it will earn you a spot in Dante's inferno either.
3) I think that to earn the same as men in this world, women have to negotiate MORE and HARDER than men, because of societal expectations (held by both genders) about the worth of women vs. men. So it is a real shame that women negotiate LESS and SOFTER. When I was in salary negotiations for my current job, I cited the salaries of men in the department, of other (higher) salaries from other job offers I was considering, and of salaries for comparable positions in other cities. I still only increased the offer by $10K, only to later learn that a man in my department had been offered essentially the same job at the same time for $5K more. Grrr! Let's fight for our rights, ladies!!
I don't advise anyone to lie about past salaries and/or past performance. Bring your most authentic self to the negotiating table. If you want $50K a year, for example, let the interviewer know that you want $50K a year and that you are willing to take the necessary steps to make that happen to include training, more education, etc, etc.
Be true to yourself first. Leave foolish behavior at the door. My business partners and I have been around the block a few times. We appreciate and recognize honest efforts. We do not support little white lies. We do not support dishonesty period.
The best way to get more salary is to use items that are hard to value, like unvested stock options, performance shares, profit sharing, etc that are time based so that if you were to leave your current company you would lose out on this- if the other party is really interested in you then this will drive up your value.
Remember you have the most negotiating power when you start a new job and you also have more power if you are already working and give the perception that you want the new job but if the deal isn't right you don't mind staying.
One last thought- if you get paid well and do a great job, why would some neurotic in HR be poring over your application to try to find a white lie for which they can terminate you? If you are screwing up you will be let go and being caught in a technicality may be one of many ways to lose your job. As a CEO I can tell you that if people do a good job the company is happy to pay them more- it's a win - win situation.
-Mike
Men in those situations will generally lie, you will be at a disadvantage if you don't.






