CareerJournal.com has a dated article regarding compensation titled When to Disclose Pay To a Prospective Boss. This is an important topic for hiring strong salespeople.
There are many salespeople who have tremendous difficulty discussing money with prospects. Their weakness leads them to spending inordinate amounts of time with “prospects” that will never close (logically speaking, the lack of money means these are not truly prospects). A weak money-qualifying salesperson may choose to spend time calling, meeting, quoting, pursuing a prospect without questioning them about their budget.
This fear of a money discussion leads to gross inefficiencies in the salesperson’s performance. Most likely, the deals they close will be ones that they simply stumble in to. Since they choose to avoid qualifying money, it is difficult to quantify how much money they leave on the table in each deal they do close.
With that background, the context of this article reads differently. I suspect the author was not writing exclusively about sales hiring, but this topic is crucial in the hiring process.
First, what not to do:
If you appear relatively underpaid, describe hefty raises and bonuses that you pocketed during boom times. Emphasize that bad business conditions rather than your individual performance were to blame.
Bad idea in sales – it is obvious excuse making.
Some better advice:
Inquire about the budgeted salary range for the targeted spot. Say whether that range matches your qualifications and personal needs. Express eagerness to negotiate your next package once it’s clear you’re the preferred pick.
In sales hiring, we value candidates who focus on the commission plan. Successful selling requires winning deals and being rewarded for those victories. Salespeople who focus on salary more than commission are displaying traits that should concern any hiring company.
Lastly, let us all hope this closing statement does not come to pass:
Should pay-history queries be outlawed? The practice “is unfair on its face — and has the effect of prolonging discrimination due to race, gender and age,” contends Ted Turnasella, a compensation consultant in West Islip, N.Y. He is lobbying state lawmakers to introduce a bill that would bar employers from posing the question during interviews or on job applications.
What an astoundingly bad idea. I wish the author would have asked Mr. Turnasella how this practice “is unfair on its face.”