In practice future salaries are heavily based on current ones because that is what the new employer is de facto negotiating against. Very few people, in my experience, are willing to entertain a new job with a salary much lower than their last one. And very few employers are willing to 'leave money on the table' and offer more than they think they need to close the candidate simply because the candidate thinks they have 'mad skillz'.
If you want to actually get paid more, get two competing offers. Or you can try the strategy of not lying and just telling the new employer, 'I'm not going to tell you my previous salary.' The downside is that this clearly signals to the employer that you weren't making very much before and you are fishing for a big raise.
This kind of goes against conventional wisdom, but I actually don't think that switching jobs is the strongest time to ask for more money. I think it's after you have gotten into a role, are killing it, and adding crazy value to the company. That's when you actually have a lot of leverage to say 'hey, I love what I'm doing here and I should be paid a lot more'.
> This kind of goes against conventional wisdom, but I actually don't think that switching jobs is the strongest time to ask for more money. I think it's after you have gotten into a role, are killing it, and adding crazy value to the company. That's when you actually have a lot of leverage to say 'hey, I love what I'm doing here and I should be paid a lot more'.
Out of curiosity, has that worked for you? My previous employer only gave me a significant raise after I threatened to quit (with an offer waiting at another company). I ended up doing it a few times. Eventually I got tired of constantly interviewing and threatening to quit and did a sideways move to a YC backed company. Total comp is about the same, maybe slightly lower, but maybe the stocks will pay out some day :D. Being fully remote is a nice perk though.
Yes, it's both worked for me and I've also managed many, many people in orgs who have proven very valuable to the company and had their comp doubled or more. Most people are not bold enough in negotiation for their own good once they are entrenched at a company. You need to create a relationship with the person who can make such a thing happen. If it's not your direct boss, then find the person up the food chain who can make such a thing happen.
The downside is that this clearly signals to the employer that you weren't making very much before and you are fishing for a big raise.
Calling it "fishing for a big raise" sounds like you're trying to scam a higher salary out of an employer. That just isn't true. There's no reason to think you're worth less just because your previous employer sucked.
Salary negotiation is about finding an amount that the employer and employee agree a job is worth. Any previous salary has no impact on that.
Yes, it's a negotiation and the negotiation is bounded on one side by 'what the job/employee is worth to the employer' and the other side by 'what the employee is willing to accept.' My point is that your previous salary strongly dictates the latter and thus heavily affects the negotiation.
And if you don't like the 'fishing for a raise' terminology we can instead just say that it signals that you don't think your previous salary is a strong point in your negotiation. So now the prospective employer doesn't know your salary, but suspects that the negotiation window is quite wide.
If they tell you this there is a 99% chance is it BS. As someone elsewhere in the thread points out, it's just a manager not wanting to have an unpleasant conversation and saying 'hey, it's out of my hands' with the assumption that the junior employe won't know any better.
If you are truly in a company that far gone with process then all is lost (and top talent will just leave anyways.) Or you are a lawyer :)
I'm not a junior and I don't know anyone who got a raise higher than 5% or so without a resignation letter in their hand.
In my experience this can only happen at small companies. The bigger the company the more they'll wish you good luck in future endeavors if you insist.
Most people wouldn't stick their neck out unless it's really necessary and directly beneficial, especially since there are systems in place to prevent/block/slow down this kind of thing. Especially if you're a newcomer.
If you want to actually get paid more, get two competing offers. Or you can try the strategy of not lying and just telling the new employer, 'I'm not going to tell you my previous salary.' The downside is that this clearly signals to the employer that you weren't making very much before and you are fishing for a big raise.
This kind of goes against conventional wisdom, but I actually don't think that switching jobs is the strongest time to ask for more money. I think it's after you have gotten into a role, are killing it, and adding crazy value to the company. That's when you actually have a lot of leverage to say 'hey, I love what I'm doing here and I should be paid a lot more'.