Q & A Table of Contents
How Do I Set My Price?
From: Chris, Arizona
Question: I am currently self employed and design web sites. I don't need a job as my own business is doing fairly well. I got an interview call out of the blue for a large web firm (worldwide). So I went to the interview and talked to them and really like what they have set up.
My problem is that they asked me what I make and I said "I'd rather not say..." and then the interviewer eventually got me to say a range of money that I would like to earn if I got this job (I am happy with the figure I told them).
The question: Am I somehow legally required to tell them what I make on my own? The amount I make on my own isn't impressive compared to what I would make at this company if I was hired at the figure I specified.
Also, any tips for avoiding telling interviewers what I want to make? For the future...
Response: I cannot give you any legal advice about whether you have an obligation to reveal your current income to a potential employer. Certainly the folks who collect taxes and bankers from whom you want to borrow money have a right to know about your income. Otherwise it is a private matter.
More specifically, when you are being interviewed for a job the question breaks into two parts: how much money do I want to get paid for the job and its concomitant conditions? and how much does the company value my services. If these two questions yield answers that are pretty close, it is likely both sides will feel pleased with the outcome of the negotiation.
One way to avoid telling interviewers how much you make is to do good homework either ahead of the interview or during the process. Interview the company: how much do you pay for this sort of job? Why are you interested in talking with me? What do you hope I can provide to your company and what is the value of that contribution I might make?
Suggesting a price range is an excellent approach. You are proposing a ZOPA: Zone Of Possible Agreement. As long as the range you offer is attractive to you at even its lower end, you have taken the appropriate first step towards getting the interviewer to let you know how much money is on the table.
When someone asks you a direct question: How much do you make? your response can be a polite refusal to divulge the information which is really a private matter. You can answer their question with your own question: Why are you interested? How much will my current income tell you about my value to your company?
When the company has come to you, let the interviewer sell their company to you, rather than using the interview as a process to sell yourself to them. If you are looking for a job, you need to know how much they pay people in similar positions. Then rather than saying 'Last year I made $xxx" you can say that you are trying to learn how the company pays its staff to see whether theirs is an appealing proposition.
Good luck. And -- did you take the job?
Steve
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