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Interview Tip: What did you make at your last job?

 
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Have you ever been asked, during an interview: "What did you make at your last job?"
DO NOT ANSWER THIS QUESTION
My reasons for this are as follows.
First, game theory says you ahve a first player disadvantage. This is true whether asking what you made, or what you want to make. For example, if you're willing to take $60k and they're willing to pay you $100k, you may say you made $55k at your last job, or are looking for $70k (thinking that would be great). However, they were willing to pay much more, and you lost out on that.
Second, game theory aside, there's a principle here. Why do they need to know? Presumably the person hiring you is a competant hiring manager. He should be able to evaluate your worth based on your skill set and what you can do for his organization. He should not need to rely on what someone else paid you. If he cannot do this, I question is managerial abilities.
Third, in my case anyway, salary has little to do with my compensation. Most jobs will pay me withing a range of $20k. Usually it's not the money which causes me to pick one place over another. It's all the other compensation. Some of this is financial: bonus, 401k, stock incentive plans, vacation time. Some is less tangiable: professional training, flexibility, environment, support, co-workers, etc. So unless he want sto get into an extensive discussion of the total package, simple salary is, for me, an inaccurate picture.
Some would argue that this is important to make sure you're on the same page. Again, I would argue that it's not a complete picture. But let's suppose for most people salary is the determining factor. Both candidates and employeers should have a general idea of the value of the job. If you don't, your playing the game blindfolded and get what you deserve. More directly, some say, after the recent boom, people don't have a realistic value; many employees especially, ahve unrealistic expectations. My answer: tough (I never thought they were worth it to begin with). In any case, they need to learn to adapt, or waste a lot of time searching.
Bottom line, your value should be intrinsic, not extrinsic. You should be valued for your current skills and what you can do today, not on your relationship with someone else.
--Mark
 
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As I recall, job applications often ask for a salary history. As you suggesting it works to just skip that?
(A recall getting pretty far through the selection process before being asked to fill out an application, but I think I've almost always had to before getting a formal offer.)
 
Mark Herschberg
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Originally posted by John Dale:
As I recall, job applications often ask for a salary history. As you suggesting it works to just skip that?


I have never, ever filled in that field. As a hiring manager, I have seen plenty of people hand me the form leaving that field blank. I've never heard of any company rejecting you because you left it blank (that's not to say it can't happen--I don't know the law--but I've never heard of it being a problem).
--Mark
 
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There are financial companies that won't hire without the information. Unless it recently changed its policies, Fidelity was a real stickler for accurate salary history and it was part of the information that their security department verified. They would actually fire you for an inaccurate salary history! Of course, you can decide not to work for an employer that requires information you don't think they are entitled to, which is why I declined their offer.
 
Mark Herschberg
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Originally posted by Reid M. Pinchback:
There are financial companies that won't hire without the information. Unless it recently changed its policies, Fidelity was a real stickler for accurate salary history and it was part of the information that their security department verified. They would actually fire you for an inaccurate salary history! Of course, you can decide not to work for an employer that requires information you don't think they are entitled to, which is why I declined their offer.


This is a different issue. First, of course, you should never lie with any information you give during an interview, because it is grounds for dismissal. (Better yet, simply never lie, ever.)
If they require your salary for a background check, certainly, give it to them. (Frankly I don't see why they need it, but what do I know?) Just don't give it to them until after you've already negotiated your own compensation package. I doubt the run a security check until the offer stage, to begin with.
--Mark
 
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On the other hand, I've seen salary information considered as part of an NDA and the employer insists that you don't disclose this information.
 
Reid M. Pinchback
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Originally posted by Mark Herschberg:

This is a different issue. First, of course, you should never lie with any information you give during an interview, because it is grounds for dismissal. (Better yet, simply never lie, ever.)


Actually, my concern was for a different reason. They insisted on accurate information further back in history than I had records for or could remember accurately, and further back than the IRS required you to keep records for! Some of the companies I had worked for didn't even exist at the time of the offer. It wasn't a tenable situation to give up my job and accept the Fidelity offer, when I wouldn't know how successful (a) I'd been at remembering, and (b) their sec staff had been at verifying. They'd been firing so many people after 3-6 months that the recruiter was having to coach new applicants through the forms in the hopes of retaining the people he hired!
 
Mark Herschberg
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Originally posted by Reid M. Pinchback:

Actually, my concern was for a different reason.


Sorry, I wasn't trying to imply that you were being deceitful on your application. That was general advice to junior engineers who may read this thread.
--Mark
 
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In the UK employers are allowed to ask your previous employer for the start and finish dates of your employment as well as your salary. So you should be honest.
A friend of mine lied and almost didn't get the job because they found out she was earning 10K less than what she told them.
my 2c.
 
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Originally posted by Simon Lee:
In the UK employers are allowed to ask your previous employer for the start and finish dates of your employment as well as your salary. So you should be honest.


The same in the United States. The employers are supposed to provide those information, even they can refuse to give any good/bad comments on your performance (Many adopt the no reference policy to avoid possible lawsuit).
 
Jim Baiter
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There are employers in the U.S. whose policy is to only say if the person worked there and if so to give only the dates the person worked there. I know this because my current employer has this policy.
 
Mark Herschberg
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For the record, for those who are curious, this is a recent trend among companies. They fear legal action, e.g. "I didn't get the job because my past employer misrepresented me."
Sometimes companies with those policies will still allow (argubly can't prevent) the reference from speaking on his own behalf, e.g. "I'm sorry, my companies policy is not to discuss recent employees. I can offer you my personal opinion." I suppose technically you risk legal action, but I suspect its unlikely. Besides, it's appropriate to ask people ahead of time if you can use them as a reference, so presumably it's people who like you.
On that note, I personally never give out a reference until I confirm it with the person under discussion. This is probably just due to the paranoia instilled in me by cryptography. Someone calls me on the phone and asks me for information. I don't know who they are or why they are asking. Sure, they may give their name, company, and purpose, but I have very little means of verifying that. Checking with the person under discussion can often quickly do just that.

--Mark
 
Reid M. Pinchback
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Originally posted by Jim Baiter:
There are employers in the U.S. whose policy is to only say if the person worked there and if so to give only the dates the person worked there. I know this because my current employer has this policy.


One thing to watch out for when looking for a new job. Not all employers are familiar with existing laws that regulate hiring practices. Just because a company says that 'x is our policy', it doesn't mean that 'x' is legal.
Requiring your social security number is an example; they are only entitled to that when they extend the offer, not before. You aren't required to give them your SSN just because you apply for the job; you ARE required by law (in the US) to give it to them before they hire and pay you.
 
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Originally posted by Mark Herschberg:
Have you ever been asked, during an interview: "What did you make at your last job?"
DO NOT ANSWER THIS QUESTION


Tough thing to do - not to answer this. My problem is that from the point of non-technology companies in my area I have been over-paid last few years. So what most of them can offer is usually a 15-20% paycut for me. I can't step up to be a Project Leader or Architect for simple lack of serious experience of thereof (actually, I'd rather step up and fail once or twice, and then be ready, but that idea is not viable in this market). Only consulting or technology companies could offer good (from my point of view) compensation, and they are in a pretty bad shape these days.
Bad of me to turn down Project Leader opportunity when I had a chance. Cindy Glass mentioned here, she'd rather stay on techie path...Didn't work quite right for me.
Shura
 
Mark Herschberg
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Originally posted by Mark Herschberg:
Second, game theory aside, there's a principle here. Why do they need to know? Presumably the person hiring you is a competant hiring manager. He should be able to evaluate your worth based on your skill set and what you can do for his organization. He should not need to rely on what someone else paid you. If he cannot do this, I question is managerial abilities.


I want to elaborate on this second point a bit further (since someone recently asked me about it and I pointed him to the URL). I see too many hiring managers who think, "You made $80k at your last job, so we'll pay you $85-90k and you should be happy." No further consideration. What this means is that for a number of people, their current pay is based heavily on how well they did coming out of school and how generous their subsequent hiring managers have been. Conversely, I knew people during the boom who would change jobs every 6 months, with a large salary increase each time. They got overvalued by the same logic.
--Mark
 
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Originally posted by Shura Balaganov:
Tough thing to do - not to answer this.


Certainly simply not to answer isn't the best advice. So what should you say?
Perhaps the best would be to openly state you don't think that your new salary should be based on the old one and you wonder what else they might want this information for?
 
Mark Herschberg
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Originally posted by Ilja Preuss:

Certainly simply not to answer isn't the best advice. So what should you say?
Perhaps the best would be to openly state you don't think that your new salary should be based on the old one and you wonder what else they might want this information for?


I guess my first post wasnt worded very well. Ilja is right. Don't simply say, "I won't answer," and sit there, give them the reasons, calmly and and rationally. Personally, I'd recommend skipping the first justification (game theory) and simply mentioning the other two.
--Mark
PS If someone gets a counterargument that they think is valid, I'd love to hear about it.
 
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Mark & All:
- On the application - where it asks for previous salary - I recommend being honest and put down a range if you have to. I doubt a USA employer will give out your salary info.
- On the application - where it states "salary desired" - put down "open".
- As Mark mentioned earlier - if asked at an interview - give a $10K to $20K range - not an exact figure. If in doubt, ask if that is a figure they can work with. Before going to an interview YOU should have a rough idea of what your market value is.
- If really pressed at an interview for an exact number - throw the ball back in the interviewers court and ask if they are making a formal job offer? If so - then start negotiating. In 5 years of interviewing - this has NEVER happened at an interview - where the employer wants an EXACT amount. Usually, they will want a range and make an offer within that range.
- Then you go to the negotiation table and hash the deal out. And yes - THIS HAS HAPPENED - where I have had interviewers make an offer on the spot and we have hashed out the details. My last job at Hewlett-Packard went this way.
Hewlett-Parcard (HP) asked me my $$ range - they said they could meet it - and wanted to know if I was prepared to hear their offer. They made their offer - I asked for an additional week of vacation (which I got) and we shook hands and was told a formal offer would be typed up and FedEx's overnight to house for me to sign.
When I got back to Denver - the formal offer was already here - and everything we agreed to verbally had been specified.
-------------
Johnny
(jpcoxey@aol.com)
 
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Mark: I agree with you - but what is a real world response? How do you personally reapond? Please give me some examples here.
How about =>
"I don't feel comfortable answering that question"
"That is none of your $$%*(@ business!"
"Why are you asking me that question?"
How about this answer =>??
"I can't really answer that. My duties at my old position were slightly different fromt this position, and the two positions can't really be
compared."
How about this answer => Forget about the question and seize a bit of control and respond with another question.
"What does this position pay?" and then just say - "Oh", and then ask another question.
Generally their recall is so bad, they forget what they even asked.
Kevin Thompson
 
Mark Herschberg
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Originally posted by Kevin Thompson:
Mark: I agree with you - but what is a real world response? How do you personally reapond? Please give me some examples here.


Int: "What did you make at your last job?"
Me: "I'm sorry but I don't give out that information. I do not see it as relevant."
Int: "What do you mean?"
Me: "Well, that information pertains to my relationship with my last (current) employer. I don't see it as relevant here for the following reasons...." (go into the points I first posted).

That's one example. Obviously you need to read the interviewer to know how to initiall respond. Some might take the first statement above as curt. You may want to jump right into the explanation from your initial answer.
--Mark
 
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I'm curious to hear that a previous employer is alowed to disclose salary (UK).
Is this really the case..legaly I mean?
Bob
 
SJ Adnams
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bob,
yes, legally. They also must give you a reference - but they can say 'no comment' or something. You can take your previous employer to court if they give you a bad reference - so what happens is they take up a telephone reference, it can't be recorded and used in court unless they know its being recorded, so they can slag you off...
Even if they don't ask for you previous salary they can work it out through your P45/P60.
 
bob dapaah
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Thanks Simon,
Useful to know, even though I don't anticipate a problem
Bob
 
John Coxey
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Kevin:
Have you actually had an interviewer specifically ask what you made at previous position?
If so, was this in the USA, what company?
How did you answer? What were the results?
Johnny
(jpcoxey@aol.com)
 
Mark Herschberg
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For the record, most of these arguments apply to the question "What are you looking for in terms of salary?" Obviously not all, and you need to tailor the answer a little to better fit the question.
--Mark
 
John Coxey
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Mark & Others:

For the record, most of these arguments apply to the question "What are you looking for in terms of salary?" Obviously not all, and you need to tailor the answer a little to better fit the question.
--Mark


This is eactly why you need to throw the question right back at the recruiter. He/She knows it's an "illegal" question.
The way I look at it - you can either create a "confrontational" situation - and you "loose". Or you can try to knock the recruiter off balance and score a "save".
Meaning:
I want to turn the question of: "How much did you make in salary?" to "What are you looking for in terms of salary?"
I think it would be incredibly dangerous to give either a $$ amount or refuse to answer the question. So you need to "side-swipe" the question - and "save par".
===
I am there (on-site) to get a job-offer --- period!!!
If I create a confrontational situation --- I loose. I hate loosing.
So the best I can do -- is to try and steer the conversation towards the "what am I looking for in salary?" question.
=====
Basically - what you have is an "idiot" for an interviewer. There are more "creative" ways to create a confrontational situation at an interview - to test a candidate. I doubt a "clever" interviewer is going to play the game this way.
More than likely - it would be a question like: "We've had a lot of trouble with candidates from your school? - Why should I hire you?"
And you go on a 5 minute diatribe of your abilities.
Then the interviewer says - "That doesn't tell me a damned thing?"
You can either throw a shit fit - or ask the recuiter to identify a specific problem.
---
The first time you hit this question - you may do the long winded discussion of your abilities. Hopefully, you've prepared several "stories" to tell about yourself.
As you develop your interview skills - you learn to skip the discussion and throw the question regarding "specific abilities" right back at the interviewer.
Note - this "confrontation test" rarely comes up at interviews - especially in our field - as the interviewers are just your basic managers with minimal interviewing skills.
----

Remember - just as alot of candidates only put 10-15 minutes into their interview preparation...there are alot of recruiters/managers who are also lucky if they spend 10-15 min in prep time.
I can't tell you how many times I have shown up for interviews only to find out the manager "forgot" I was comming. And this has happended to me twice after flying half-way across the country (at their expense).
---------------
Hope this helps.
Johnny
(jpcoxey@aol.com)
 
Kevin Thompson
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Johnny: Yes, I have had interviewers ask how much I made at my last position. This has happened on numerous occasions. (so common to be considered normal). Yes I work in the USA.
However, you need to know that I have been a contractor/consultant for past 10 years. I have not been an "employee" of a client for more than a decade. For people like me there are two tiers of interviews:
Interview with the pimp (contract/consulting company):
YES - they always ask how much money I "used to make."
Interview with client:
NO - They never ask how much money I used to make, because they know I have been a contractor/consultant. The hourly price for my services has already been set PRIOR to the interview, and negotiations between me and the pimp have been completed prior to my talking to client - so the salary is not the issue. The client is just interested if I can do the job or not.
Kevin
 
John Coxey
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Kevin:
Thank for the clarification.
I have just been a standard W2 Employee.
I don't have enough experience yet (or so I feel) to do the independent contrator thing. Would not mind eventually doing the independent corporate trainer thing someday.
John Coxey
(jpcoxey@aol.com)
 
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Originally posted by John Coxey:
Kevin:
Thank for the clarification.
I have just been a standard W2 Employee.
I don't have enough experience yet (or so I feel) to do the independent contrator thing. Would not mind eventually doing the independent corporate trainer thing someday.
John Coxey
(jpcoxey@aol.com)


What is the "standard W2 Employee"?
I also have seen, but cannot find just now post, such terms as "401K" and "NDA". What are they?
[ January 18, 2003: Message edited by: yidanneuG ninaV ]
 
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Why do they need to know? Presumably the person hiring you is a competant hiring manager. He should be able to evaluate your worth based on your skill set and what you can do for his organization. He should not need to rely on what someone else paid you. If he cannot do this, I question is managerial abilities.


Take this hypothetical: Candidate was hired away from his Dot-Com employer during the "boom time". His value to the dot com was quite high, because they badly needed to grow or show progress to a VC firm or go to market or whatever. To be lured away from that lucrative job, the next company had to bump the candidate's pay even further. Now the second company is going under and, although the candidate feels secure for the time being, he or she wants to begin looking outside. The economy is suffering. Unemployment is significantly higher than when the candidate last obtained a job.
The candidate is now making 90k in a market that values his/her skills at 55-70k, depending on the exact skill set a company is seeking. The candidate feels that he/she is worth 90k + a little more, because salaries have been frozen for quite a while at the company and the candidate has not had a review in a long time.
Personally, I don't want to wait until after several interviews to enlighten this candidate. I want to know how well he or she has considered "market rate" and salary desires. I see this situation all the time.
I think it pays to consider carefully what sort of salary you would really accept for "the right job." Believe it or not, I have paid people more than their asking price. That does not make me stupid; it just means that when we have completed our evaluation of the candidate he or she turned out to be worth more to us and "market rate" than the candidate thought. Underpaying candidates who "don't know their value" is not a wise policy unless you're looking to create turnover problems.
I agree with John - have a range and justify it, whether it's higher or lower than your current salary. I know people making 32k who are worth 40-45 and I know people making 90-110 who are worth 75-90.
Scott
 
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Scott, you are a good person, however, it's getting to be a rare thing in this field, especially when a company hires a consulting company to hire a consultant. How many times have I seen this world-wide consulting services company that is expanding from year to year do the following: recruit a junior programmer, tell the client they are sending a senior without the consultant even knowing, just so they can bill at a higher rate and pay the consultant a lower salary. I have seen it done to 3 of my co-workers 2 years ago. The same company hired a woman who had a college degree with 2 years C++ and 1 year Java for $32 000/yr 3 years ago. They later hired a man who did a one year programming course, no ambition to continue his education, and NO prior work experience at $50 000/yr! Why? Because the guy was over 6 feet tall and over 200 pounds and she was barely over 5 feet and weighing barely 100 pounds, he looked more threatening than she did and she didn't show confidence as he did although he knew nothing and did more damage than good. Yet, they kept him around since he became buddies with the managers, while she did both her work and his! What a world!
 
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hi chad,
i agree w/ ur latest posted view -"what a world!". i've experienced it having nature sort of a woman you talked about :-(
in these scenarios life seems to be more philosophy and all you know :-)
i believe one has to learn to establish their value and importance particularly to avoid abuse.
regards
maulin.
 
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If you hire someone at $60K but that person is worth $80K, you may think you have been clever but I guarantee that as soon as that person realizes they are worth $80K they are out the door.
 
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Here is a similar question from monsterindia.com virtual salary negotiation.
Q Your current earnings do not reflect your experience and abilities. You haven’t minded up to now because you’ve been learning and gaining valuable experience. However, the time has come for you to reap the rewards of your hard work. Unfortunately, there’s no room for advancement where you are so you have to look elsewhere. One of the questions you’re likely to be asked as you commence looking is: How much money are you currently earning? How do you handle this question in light of the fact that you’re seeking a substantial increase?

  • I would be very reluctant to tell them what I’m earning because they would put me in a salary pigeon-hole. If I quote them my current low salary they’ll automatically assume that it's my current worth. I would quote them a figure that is commensurate with market rates and my experience.
  • I would be upfront about what I’m earning, but I’d make absolutely certain that they knew the reasons why. I’d emphasise the fact that I had been on a steep learning curve and that I have outgrown the job. I’d also mention that there’s no room for movement where I am. I would also have done my homework so I could talk about what others are earning with my levels of experience and knowledge. Above all I’d be concentrating on giving answers on how I could add value. At every opportunity I’d be seeking ways of giving concrete examples of how I could help them with their key business indicators such as productivity, quality, customer service etc.
  • I regard salary history questions as immaterial to one’s abilities. It’s not about what you’ve earned in the past, it’s all about what you can deliver in the future. I think some interviewers ask about salary history because it’s a means of limiting what you can ask for. You could, for example, be earning 50K (for any number of reasons) but be worth double that. If you tell them you’re earning 50K they’ll never offer you double that amount. I would, therefore, say to the interviewer that what I’m currently earning is not relevant in terms of what I can do for the company.


  • It says second answer is the best answer! As for me, I have not yet been able to avoid quoting my figure though I mention that my sal was frozen for 15/16 months.
    - Manish
     
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    Originally posted by yidanneuG ninaV:

    What is the "standard W2 Employee"?
    I also have seen, but cannot find just now post, such terms as "401K" and "NDA". What are they?
    [ January 18, 2003: Message edited by: yidanneuG ninaV ]


    A "standard W2 Employee" would refer to someone in the US, typically salared. W2 refers to the US tax form received at the end of the year.
    401K similarly is a tax term, but refers to a retirment account.
    NDA is a business term--short for "Non Disclosure Agreement" : in short, you promise not to tell anyone that their product is crappy.
     
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    i think i would use these points indicated by Mark when faced by tricky salary gamesmanship questions...: "Some of this is financial: bonus, 401k, stock incentive plans, vacation time. Some is less tangiable: professional training, flexibility, environment, support, co-workers, etc. So unless he want sto get into an extensive discussion of the total package, simple salary is, for me, an inaccurate picture.
    "
    and just say that if they want to be on the same page, these are the things worth talking about in terms of compensation, as, "both of us being professionals, we should have a general idea of what the job is worth in today's current market".. etc.
     
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    Originally posted by Jasper Vader:

    "both of us being professionals, we should have a general idea of what the job is worth in today's current market".. etc.


    you have knocked him/her down by this reply and "etc" may not be appropriate!
     
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    I donno about in the US but, this is a big problem here in India. Your present salary is decide based only on your previous salary, we have to provide them our last pay slip for proof.I will this is so unfair, because if u are working in a small company for ur fast job then ur future is not so bright, as the offers u get are lesser than others u worked in a big company with a good pay. We cannot avoid this and so there is no other way but to accept whatever they offer.
     
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    Originally posted by Shivani Agarwal:
    I donno about in the US but, this is a big problem here in India. Your present salary is decide based only on your previous salary, we have to provide them our last pay slip for proof.I will this is so unfair, because if u are working in a small company for ur fast job then ur future is not so bright, as the offers u get are lesser than others u worked in a big company with a good pay. We cannot avoid this and so there is no other way but to accept whatever they offer.


    True, so negociate your salary well
     
    Shivani Agarwal
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    any suggestions to avoid this, and don't u think it is unfair ..........
     
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