How to Respond to "What is Your Current Salary?" in Salary Negotiation

Description of the Topic: During the interview process, the interviewer may very likely inquire about your current or previous salary. While this question appears straightforward, it may conceal underlying intentions such as assessing the reasonableness of your salary expectations, saving costs for the company, or evaluating your fit for the position. Answering directly and honestly may limit your potential salary increase in the new job or even result in a lower offer. Therefore, learning how to respond to this question skillfully and professionally is a crucial technique in salary negotiation.

Solution Process:

Step 1: Understand the Interviewer's Intent and Prepare in Advance

Before formulating your response, it's essential to first understand why the interviewer is asking this question.

• Intent:
  1. Benchmark Reference: To use your current salary as a benchmark to determine what constitutes a "reasonable" raise for you.
  2. Budget Assessment: To verify if your current salary falls within their budgeted range for the position.
  3. Value Assessment: To indirectly evaluate your career trajectory and market value.
• Advance Preparation:
  • Research Market Rates: Before negotiating, make sure to research the market salary range for the target position within your specific industry, region, and experience level using job boards, industry reports, and professional networks. This is your most important bargaining chip.
  • Calculate Your Total Compensation: Your current salary is not just your base pay. It is an entire compensation package, including:
    • Base Salary
    • Bonuses, Performance Bonuses, Year-end Bonus
    • Stock Options, Equity
    • Various Allowances (e.g., transportation, communication, meal subsidies)
    • Company contributions to Social Insurance, Housing Fund (some companies contribute high percentages, which is a significant hidden income)
  • Define Your Minimum Acceptable Salary: Based on market rates and your cost of living, set a minimum salary standard you are willing to accept.

Step 2: Choose a Response Strategy and Frame Your Answer

After understanding the intent and preparing your data, you can choose one or a combination of the following strategies based on the interview context.

• Strategy One: Delay the Answer, Prompt Them to Reveal Their Budget First (Recommended Top Choice)
  This is the most proactive strategy. Its core is to express willingness to answer but prioritize inquiring about their budget range, shifting the negotiation focus from "what you were worth in the past" to "what this position is worth and the value I can bring."

  • Example Script: "In my current total compensation package, the combination of base salary, bonuses, and various benefits adds up to a significant figure. However, I'm more interested in understanding the salary range the company has set for this position, which involves important responsibilities like [mention key duties of the role]. Because I believe my capabilities and experience, and the value I can create for the company, should be the key factors determining the salary."

  • Advantages: Skillfully shifts the topic, takes initiative, avoids being constrained by past salary.

  • Considerations: Maintain a confident and sincere tone, show genuine interest in the position itself rather than appearing evasive.

• Strategy Two: Present the Total Compensation Package, Not Just Base Salary
  If the interviewer insists on a specific number, or if you feel directly avoiding the question is inappropriate, then providing a comprehensive "total compensation" figure is more advantageous than stating only your base salary.

  • Example Script: "My current overall compensation package, if converted to an annual total value, is approximately [a reasonable range, e.g., 20%-30% higher than base salary]. This includes a base salary of [specific figure], an average annual performance bonus of [specific figure], and various allowances and benefits provided by the company such as [list specific benefits, e.g., 'maximum contributions to housing fund and supplemental commercial insurance']."

  • Advantages: More accurately reflects the value of your previous role, providing a higher starting point for your salary expectations.

  • Considerations: Ensure your calculated total compensation is truthful, reasonable, and can withstand scrutiny.

• Strategy Three: Emphasize Salary Expectations Over Current Salary
  Directly steer the conversation towards your expectations for the new role, explaining why pricing based on past salary is not reasonable.

  • Example Script: "I understand you need a reference point. However, I believe my current salary may not fully reflect my value for this new position. As I mentioned earlier, I have extensive experience in [mention your core competencies or success stories], which aligns perfectly with what this role requires. Therefore, based on the requirements of this position and current market rates, my expected salary is [a specific range or figure]."

  • Advantages: Direct, professional, clearly communicates your stance.

  • Considerations: Before using this strategy, ensure you have sufficiently demonstrated your capabilities and gained the interviewer's recognition of your value.

Step 3: Special Circumstances and Key Considerations

• If the Interviewer Insists and You Must Answer: After employing the above strategies, if the interviewer still insists, being overly evasive might leave an impression of dishonesty. In this case, you can truthfully provide an accurate total compensation figure, but immediately follow up with an explanation.

  • Example Script: "My current base salary is [figure], and with bonuses and benefits, the total package is approximately [figure]. However, as I mentioned, I am seeking this new opportunity hoping for greater responsibilities and contributions, so I expect a correspondingly more competitive salary. I believe [your expected range] is a reasonable range."

• If Your Current Salary is Relatively Low: Be honest, explain the reasons, and emphasize your growth and market value.

  • Example Script: "I joined my previous company based on the circumstances at that time, with a relatively low starting salary. But during my tenure, I achieved rapid growth by [provide specific examples, e.g., 'completing the XX project, driving XX growth'], and my scope of responsibilities expanded significantly. I understand that in the current market, the typical salary for someone with my experience and capabilities is around [market range], which is what I expect based on my value contribution."

• Legal Note: In some regions (e.g., certain states in the USA), asking about current salary is illegal. You can politely inquire, "Is this information a necessary part of the hiring process?" However, in most regions, it remains a common question, making the above strategies more universally applicable.

Summary: The core of responding to the "current salary" question lies in shifting the focus—from "what you were worth in the past" to "what this position is worth" and "what value I can create for this position." Through thorough preparation and confident communication, you will be better equipped to protect your interests and reach a fair and satisfactory salary agreement.