Disclosing Compensation Information to an Executive Recruiter

If ever there has been a topic of debate in the management of one's career, it has been in the area of disclosing compensation information.  The thinking is that such disclosure can cost you a job opportunity or result in a pay cut in an offer that you would not otherwise have experienced.  I'm writing this from the standpoint of an executive recruiter.  I will leave to you how you deal with this when interviewing directly with an organization.  Of course, eventually (and generally sooner rather than later) the organization will require you to complete an application.  Leaving the compensation space blank is up to you, and how it will be received is up to them.

But know this if you are dealing with an executive recruiter:  Keeping compensation history close to the vest is usually a show stopper.  We are being paid well to narrow a large field of potential candidates into those few who best fit the position specification, and that includes a compensation range. 

All executive recruiters identify the compensation target range early in the process.  In most cases, their fees are built on the compensation target--total annual cash compensation, usually.  The client fully expects the recruiter to sift through candidates until an excellent slate of those who fit within the range can be assembled.  There are situations where the entire slate of candidates will exceed the desired range.  This is the point at which recruiters put on their consulting hats.  In these situations what has usually happened is that the organization has lost touch with what people are making who hold a given position in comparable organizations.  It is incumbent on the recruiter at that point to be able to back up their findings rather than simply submit a slate of candidates who make more money.

You will quickly be asked by a recruiter a question such as, "How are you currently compensated?" or "How were you compensated in your previous position?"   If you are coy about this, it is questionable whether you will be moved forward in the process.  The search firm generally has a lot of potential candidates they are working through and a client who expects quick results.  If you take a stand on this you will usually be passed over.  If there is a story around your compensation, e.g., everybody at your company had to take a 20% pay cut over the past two years, or, there were no bonuses paid ever since I arrived and 30% of my compensation was tied to bonuses, then just say so.  Recruiters understand this, especially in the current economic conditions.   Every potential candidate is striving to do generally one of two things:  1) move up in responsibilty and compensation, or 2) get out of a bad situation (for any number of reasons).  Experienced recruiters have heard just about everything, and if your background suits the position well, they will represent the truth for you with their client.  Their job is not to low ball you.  It is to find the best candidate--a candidate that will succeed and stay as long as possible with the organization.  It has been my experience that for the right candidate, hiring organizations compensate them fairly, whatever their history.

So when asked by an executive recruiter to disclose your compensation history, do so if you want to continue in the process.  Be candid and open with the recruiter.  In most cases you will be able to work through any perceived compensation difficulties.  http://www.esiassoc.com/  http://www.michaelkburroughs.com/