Negotiating your salary can feel like walking a tightrope, especially when it comes to the tricky question of disclosing your current salary.

One hot favorite topic for recruiters is to ask about your current salary (if you are not a freshie).

In times like these, you can’t really decide if you should reveal it right away, or hold off until later in the process.

Generally, it’s best to avoid disclosing your current or previous salary as this information can limit your negotiating power. Instead, focus on the value you bring and the market rates for the position you’re applying for.

But if you’re at a stage in the negotiation where you’ve already discussed your skills, value, and market rates, and if the recruiter insists, you might choose to share your previous salary.

Let's break it down into bits to understand the scenarios and phases.

Early Stages: Hold Off on Disclosing

In the initial stages of the job application process, it’s usually best to avoid disclosing your current salary.

Here’s why:

• Focus on Your Value: At the beginning, you want to emphasize your skills, experience, and what you bring to the table, not just numbers.

• Market Rates: Concentrate on the market rate for the position you’re applying for rather than anchoring the discussion on your current pay.

When to Consider Disclosing: Experienced Professionals

If you’re an experienced professional with a strong track record, disclosing your current salary can sometimes work to your advantage.

Here’s why:

• Avoid Low Offers: By sharing your current salary, you set a baseline that prevents the recruiter from offering something far below your expectations.

• Showcase Your Worth: It highlights your experience and can signal that you’re a serious candidate with a certain level of expertise.”

Later Stages: When It Makes Sense to Disclose

Once you’re deeper into the negotiation process and have discussed the role, your skills, and the value you bring, disclosing your current salary can help move things forward more smoothly.

• Context is Key: At this stage, both you and the recruiter have a clearer understanding of the job’s demands and your fit.
• Alignment: It ensures that both parties are aligned on expectations and helps avoid any last-minute surprises.

Example Response:

“I’d be happy to share my current salary to provide context. I’m currently earning [$X], but I’m looking for a new opportunity that offers growth and aligns with my market research, which suggests a range of [$Y to $Z] for this role.”

Situations to Consider Disclosing Early

• High-Demand Skills: If you have niche or highly sought-after skills, disclosing your salary early can signal your value and prevent low-ball offers.

• Time-Sensitive Searches: If you’re in a situation where time is of the essence—for example, if you’re trying to move quickly due to personal circumstances—disclosing can speed up the process.

Example Response:

“I understand the importance of aligning expectations early on. I’m currently earning [$X], and I’m looking for a position that offers competitive compensation in the range of [$Y to $Z], reflecting my skills and market conditions.”

Tips for Handling Salary Disclosure

1. Be Strategic: Only disclose when it benefits you, either by preventing low offers or moving the negotiation forward.

2. Frame It Well: Always frame your current salary in the context of your experience and achievements.

3. Know Your Market: Ensure you have a clear understanding of market rates so you can confidently discuss your worth.