Obviously, the “reasonable explanation” is that they need to know how little you’re willing to work for so they can low-ball you as much as possible. Unless it’s much higher than what they’re willing to pay, in which case they need to know you’ll be itching to jump ship the moment a better offer comes along so they can save the trouble now by not hiring you.
Lose-lose proposition. Your ball.
When I switched jobs last time (in a COMPLETELY DIFFERENT ECONOMY), I answered with “more than you can pay me, but that’s ok, don’t worry about it, make a fair offer and we will work from there.” The HR guy I was talking to laughed. But it was true, I was consulting and managing. In moving, I’d stop managing and I’d be moving to something more stable. I’d had kids and wasn’t interested in sixty hour weeks or a sixty hour salary.
I like that. “My salary was ONE MILLION DOLLARS, but I’d be willing to accept less.”
This is actually a good idea Anchoring implies that starting with a million bucks, even as a joke, can anchor the HR person higher. Experiments have indicated that giving an absurd data point - like asking if the average temperature in San Francisco is greater than of less 700 degrees F, affects the estimate people have of the actual average temperature.
My guess is that Nick would advise you to say “I think I am worth this to you,” and have you give reasons why you are. If they bring up the current salary, you can say that you don’t understand why your present employer should have any input on how much you are worth to your prospective employer.
But the confidential information tactic is simpler.
“This interview is over. I don’t play these bullshit games.”
Oh, I wish. Maybe some day…
Be 100% honest, they are testing your integrity and also they are weeding out people.
They can verify salary so you can’t hide it. When I was in H/R what we would do was verify old salary and offer 5% more.
The way to get around this is to say, I make $50,000/year + BONUS.
This will give you the leeway to play with. That way if they short you, you can come back with, “Well with the bonus, which I always got…”
The thing is companies budget for positions and the amount for that position has been decided. So there’s a 99% chance you have to come in with that or less.
Companies have an excess of qualified applicants, in most, but not all, cases.
So if you’re one of those you are going to be weeded out.
For instance, I’ve been temping for the last 3 years, I have 25 years of hotel experience, (Asst Controller, IT Manger, Revenue Mgr, H/R Manager) and I can’t get a job as a desk clerk. Why? Overqualified. They know anything less than a mid management level and I’m gonna keep looking and bolt.
If there were no other candidates of course they’d hire me, but there are lots of people applying with LESS than me.
I ponied it up because I had shown and listed my federal grade progression on the application form to demonstrate that I had achieved some level of seniority and commanded a decent salary (I ended my career at GS-14). Since that salary info is publicly available, there was no point in hiding it, which I never do in any case.
In the end it worked out for me. I was willing to take a hit on my salary this summer because it’s my internship summer and I wanted this company on my resume (perfectly timed opportunity that comes along very rarely). However, once I gave them my salary history the initial sum the recruiter told me on the phone was significantly increased to surpass my ending salary as an attorney. They also added in relocation and paid off my summer housing to boot, so I came out much ahead.
I am not especially keen on negotiating salary for full-time so having them make a decent offer for the summer after I gave them my salary history was quite nice. I know I need to be pushy next year though…yayyyy (voice trailing off)
I work for a city government, and the only thing they will tell employment verification folks is that you work(ed) here and your salary.
It is the law here.
Be honest.
For new college grads, PhDs, my company has a fairly wide range of salaries that can be offered without special approval. Previous salary is not relevant for this category, of course. I suspect that for cookie cutter jobs the range is a lot narrower.
How would they verify it if it was with a private company? Are companies just giving that info out these days to any old person who calls up and says they are an HR rep from one of their competitor’s companies and they’d like to know detailed salary information about X individual? Who, by the way, is actively looking to leave your company and join ours?
“That is covered under my confidentiality agreement.”
For the win.
I also believe that companies will interview people hoping that they’ll leak that figure (and other information that could be useful).
I work maintanence. The range of pay can be as low as 15$/hour to as high as $50/hour. The employeer that is paying more will only pay it to skilled workers. Those who really fix equipment not just work on it. And they do not pay the high wage to someone who only knows how to use a phone to call a contractor.
What you are now making will be an indicator of what you are worth. I will not go to a job interview unless I know the range that will be paying, I assume that in the same manner they will want to know what I am now being paid. In fact my resume has my present pay rate on it. If I can get personel and the Chief’s to read it, it will save both of us time. Why waste time trying to set up an interview date with someone who will not come to work for you.
When I was hiring I wanted to know what they were being paid now. If they were working way under scale it is an indicator that they were semi skilled.
This.
These kinds of questions are red flags. If you take this job, you will be in an adversarial relationship with your employer who will always be trying to get away with what ever you will allow, and you would be a fool not to respond in kind. If you want that that kind of job, or can’t afford to pass it up, at least go into it with your eyes open.
As soon as you make an offer I’ll tell you my current salary if the offer was acceptable.
I’ve usually seen these sorts of questions on applications with big companies, rather than in interviews. In this context, it usually is a red flag that you’ll be working for a big douchey company that will short you on raises, lay off random critical people for no apparent reason and have policies that’ll make you miserable. 
The best part is when these companies have current salary on their application as a mandatory field, and require a number, so you can’t even put in an explanation. A few times, I’ve put in “0” to decline, and it kicked back a rejection from that too (must be an actual value)!
I wouldn’t decline a job on this basis alone but, as you say, it’s a red flag.
I work in the Legal field primarily with huge law firms. So they’re all douchy. I can’t remember the last time I didn’t get asked this question.
I normally estimate up my total compensation (base salary + bonus + OT + anything else that might be relevant) and give them that figure.
I’d love to go the confidential route, but I’m not sure that would fly in my industry. Because there are only so many big law firms, it’s common for employees to move in between them. I can state confidentiality, but when they’ve previously interviewed 2 dozen people from my law firm and no one mentions confidentiality, then I look a little dishonest.
I’m in the same position as Bosstone. I’m underpaid at my current firm and am looking to move. Potentially I’m looking at anywhere from a 30%-100% increase over my current base salary depending on the exact position to which I move. I worry about getting low-balled due my current base. I might just try the confidentiality thing anyway.
Last time I went for a job interview they required me to bring in a pay stub!
Although I meekly submitted to that one, I suppose it’s unsurprising that our negotiations ultimately faltered over quality-of-life concessions I demanded (and that my current job is providing me with) and that they were unwilling to give me.
BTW, if you think this is bad, I’ve seen a report of a company demanding the Social Security number of an applicant in order to do a credit check before an interview.