In the realm of finance and accounting, interviews are a critical juncture for both candidates and employers. One question that often arises is, “What is your current salary?” This inquiry can be particularly tricky to navigate. In this blog post, we will explore the best ways to handle this question, ensuring you maintain professionalism without disclosing your current salary. We’ll also delve into the significance of gender pay equality and the power dynamics involved in salary negotiations.
Firstly, there are some important things to remember:
- This question is not illegal and is a perfectly understandable question for an interviewer to ask when the interviewer assumes that you would be happy with a small uplift on your current salary
- Most interviewers do not wish to negotiate with you as they are not good negotiators – they prefer HR or the agency to do this
- The employer has a budget and therefore knows specifically what salary can be considered for the role
- Both parties often feel that they shouldn’t divulge their expectations. Whilst being the first to “show your cards” can be seen as “weakening your negotiating power”, its is also a sign that you are not a secretive individual
The Professional Approach to Salary Questions
When asked about your current salary, it’s essential to approach the question with tact and professionalism. The question is often asked out of ignorance so your answer should be educational rather than confrontational. Here are some strategies to consider:
- Redirect the Conversation: Instead of disclosing your current salary, steer the conversation towards your salary expectations based on the role and market standards. For instance, you could say, “I prefer to focus on the value I can bring to this role and what the market rate is for a position like this.”
- Market Research: Equip yourself with data on industry standards for the role you’re applying for. Websites like Glassdoor, Payscale, and the Office for National Statistics (ONS) provide valuable insights.
- Emphasise Your Skills and Experience: Highlight your qualifications and how they align with the job requirements. You could respond with, “My experience and skills in financial analysis and budgeting are well-aligned with this role, and I am confident that we can agree on a fair compensation that reflects this.”
What If They Ask You The Same Question Again
This is when alarm bells should start to ring. If your guidance towards your salary expectations does not alert them to the fact they have asked an irrelevant question, I would suggest a more clear and direct response. “Having spoken to my peers and looked at salaries on offer at other organisations, I realise that my current salary does not reflect my skills and attributes so am now looking to work with a business that can better reflect this so I am looking to earn
The Importance of Gender Pay Equality
Discussing salary in interviews also brings up the critical issue of gender pay equality. According to the Chartered Institute of Personnel and Development (CIPD), the gender pay gap in the UK’s finance sector remains a concern, with women earning, on average, 15% less than their male counterparts in 2023. By not disclosing your current salary, you help prevent perpetuating existing disparities. Instead, you push for compensation based on the role’s value and your qualifications, rather than previous earnings which might have been influenced by gender biases.
Power Dynamics in Salary Negotiation
Understanding the power dynamics in salary negotiations is crucial. Employers often hold more power in these discussions, and divulging your current salary can tip the balance further in their favour. Instead, focus on negotiating from a position of strength by:
- Being Informed: Knowledge is power. Understand the company’s pay structure and the typical salary range for the position you’re applying for. This information can often be gleaned from job adverts, industry reports, and networking with peers.
- Confidence in Your Worth: Be prepared to articulate your worth confidently. Frame your salary expectations in the context of the value you bring. For instance, “Based on my extensive experience in financial reporting and the improvements I’ve highlighted to you in my current position, I am seeking a salary in the range of £50,000 to £55,000.”
- Flexibility and Negotiation: Show willingness to negotiate other benefits if salary discussions reach a stalemate. Benefits such as bonuses, flexible working arrangements, and professional development opportunities can be equally valuable.
Conclusion
Navigating salary questions in interviews can be challenging, but with the right approach, you can maintain professionalism while advocating for fair compensation. By redirecting the conversation towards your expectations and market standards, you protect your interests and support broader goals like gender pay equality. Remember, salary negotiations are an opportunity to establish your worth based on your skills and experience, not just past earnings. As middle managers in finance and accounting, leading by example in these discussions can contribute to a more equitable and transparent industry.
For more insights on career development and salary negotiations, stay tuned to our blog and follow our updates on LinkedIn. Let’s continue to strive for fairness and professionalism in all our career endeavours.