Compensation is a delicate topic, but it is central to most job searches. Knowing when and how to talk about it is critical to any successful process. Discussing it too early appears mercenary, yet it is also important to ensure alignment early enough in the process to protect everyone’s time.
By law, in many states, including New York, California, and Illinois, interviewers cannot ask for current compensation. If a recruiter or prospective employer follows the law, they will ask what compensation you are looking for rather than what you currently earn. Some candidates volunteer their current comp anyway. That’s a choice, not a requirement. If after doing some early research, you realize that you are underpaid, don’t disclose your current compensation. These laws exist for a reason: to stop compensation history from anchoring your next offer and perpetuating that underpayment. Don’t undo that protection yourself. If you believe that your current compensation is a good baseline, then sharing it can be an easy way to set a range.
Before you start your process, have a general sense of what compensation range you expect. But be flexible and do not get tied to a specific number. Your read on the market and the actual market can diverge, particularly if you’re coming from a firm or fund that overpays relative to the market. Candidates don’t always recognize this about their own employer. If your current role compensates above the market, don’t fall into the trap of expecting your next role to match your current compensation simply because your lifestyle requires it. That expectation is its own kind of golden handcuff. If you’re not sure of what the range should be, you can tell a recruiter you’re looking for “whatever the market is.” This will demonstrate that your primary interest is in the job and that you’re willing to accept whatever the market dictates. Don’t say this if you need to hit a specific number to support a specific set of financial responsibilities. It is important to be honest and forthcoming with your recruiter early in your search to ensure that there are no hiccups later in your process.
As a general rule, you should not be the one to mention compensation in an interview. Wait for the interviewer to approach it. Your recruiter should have a sense of what the position’s target pay is and if you are comfortable with it, you can cite that number. If you are unsure of the target, it is always safe to say that you just want compensation to be in line with the market, but that your priority is finding the right opportunity. If you have a firm number below which you won’t go, you can simply say, “This is my floor.” If that’s the case, your recruiter should make sure that your minimum figure will not rule you out.
Not every firm is willing to commit to specific numbers, even at a late stage in the interview process. In that case, it may help to evaluate the firm’s reputation and where its leadership and senior staff built their careers. If the people running the firm started out at firms that offer lower compensation, expect that to apply. If they came from firms known for paying above market, that may continue too. Talk to your recruiter about the firm’s compensation philosophy. Do they typically prioritize cash with less emphasis on performance-based upside? Or is cash paid to provide basic support while a larger share of compensation is based on individual performance? These are questions your recruiter can help you answer, but they are also factors to address with an interviewer without disclosing exact dollars.
Any conversation about compensation should have a basis on clear priorities and expectations. Be forthright about your needs with your recruiter, who can help you navigate those numbers during your interview process. If you know that you want a role regardless of compensation, communicate that to the recruiter (but not the interviewer). Be honest with yourself. Taking a compensation package that doesn’t suit your needs is a recipe for being back on the job market sooner than you should be. Take advantage of your recruiter’s expertise to get a sense of what the market has to offer and proceed from there.
