In the realm of job interviews, the topic of salary expectations often becomes a nuanced conversation. When candidates are asked about their current earnings, they face a critical decision. From an HR standpoint, the honesty of the response can influence future professional interactions. It is common for recruiters to inquire about previous salaries, but the wisdom of disclosing these figures can be debated. Legally, there is no obligation to reveal past earnings, but the choice to do so adds a layer to discussions about transparency and trust in professional settings.

Consider a scenario where an interviewee inflates their previous salary to secure a higher offer. While this might seem advantageous initially, if discovered, it could damage their professional reputation. Trust, once lost, is difficult to regain, especially at the start of a new job. Honesty in these discussions is not only a moral choice but also a strategic one.

A more prudent approach for candidates is to steer the conversation towards future contributions and expectations. For example, a candidate might say: "My focus is on the value I can bring to your organization. I am seeking a role that compensates fairly based on the responsibilities and my qualifications. What is the salary range you have budgeted for this position?" This response shifts the focus from past compensation to future potential and alignment with the company’s budget.

Experienced HR professionals usually have a clear budget in mind for each role, guided by market standards and the specific demands of the position, rather than past compensations. Today, compensation strategies increasingly emphasize broader salary bands and skill-based pay, focusing on the value of the role and the skills the candidate brings, rather than their salary history.

Navigating salary discussions with transparency and integrity can establish a positive precedent for employment relations, emphasizing mutual respect and equitable treatment. It shows that the candidate values honesty and is confident in their worth, laying the groundwork for a successful professional relationship. In this evolving job market, both employers and candidates benefit more when salary discussions are based on potential and performance rather than history.

This guide has been provided by the CIPD, a professional body for HR and people development. The CIPD has been championing better work and working lives for over 100 years. It helps organizations thrive by focusing on their people, supporting our economies and societies.