What is your current Salary?
I have seen many post, comments, opinions, suggestions on interviewer asking candidates their last or current compensation during interview.
The way I look at it, interviewer ask questions and candidate answers the questions, vice versa, keep it simple. It is mutual, gives an opportunity to know each other better and helps manage expectation from the very beginning. At least this is what happens in perfect world when interview is conducted by professionals.
Nothing wrong in asking salary history rather it should be subject to candidates willingness to answer the question, Depending on companies geographical location and HR policy, interviewer will have to decide if it is legally and ethically right to ask. Generally, first thing comes to candidates mind when you ask this question is “none of your business”, some may answer as you may at this point have an upper hand and candidate may be in need of job.
I believe it is a personal question. Candidate’s last salary could be either on the higher or lower side compared to your budget or what you were paying last person on same position, similarly candidates past salary could be purely based on circumstances, market conditions, company size, location, experience or could be due to other personal reasons, so it probably may not be relevant to know. If the candidate is not comfortable to answer the question, don’t force, it may not make the person feel better or comfortable.
Clearly, if skills and experience are not met, you should not make an offer. If you still decides to go ahead because you see potential, try not to take advantage and start negotiating based on shortfall or flaw you may have found. Instead show a plan, explain why you think offer you have made is justified, set a goal and tell the candidate there will be step by step salary increase based on goals set mutually and you want the candidate to work on short falls which has been identified. You will have a better chance of welcoming a motivated employee and can retain him or her for a longer period. Remember, salary which was negotiated because of lack of experience or skills, you did not change the job description, so the candidate is still going to be doing the same job and will have to assume same responsibilities which you expect from a candidate who would have been a perfect fit.
If the candidate meets the criteria and is a perfect fit then you have the salary which is already budgeted, make an offer. If the candidate expects he or she deserves more, just be upfront and tell the candidate if you can match or not. There may be other benefits which you can throw in and make up for the gap if you don’t want to lose the candidate. If your offer is at least within 10-15% of what the candidate has in mind, I think you have the candidate.
Important question is, what are you going to do with past salary information anyway, most probably to see if the candidate fits in your budget. That’s pretty much it, right?
One way amongst many, is to add compensation package along with the job advertisement. Interested candidates will apply and those who are expecting more will not or may be still take their chances to see if there is a room for negotiation.
If past salary info is for you to negotiate, then, ask yourself, are you negotiating to show your boss how much you saved by bringing someone less then you have budgeted or are you trying to get the right candidate, a candidate who is genuinely motivated and probably will stay longer, hence save recruitment, training, job advertisement cost in a long run?