SERVING THE QUANTITATIVE FINANCE COMMUNITY

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tigerbill
Topic Author
Posts: 360
Joined: April 22nd, 2004, 7:14 pm

### Should I tell the truth about current salary?

Should I tell the truth about current salary when HH asks me? is it understandable when he finds my true salary is 10% lower than what i tell him?I mean, obviously what i want is an offer higher than current one, that is why i think to tell a bigger number.thanks. #######################ok, thanks all, now i understand.know how to reply such a question by HH then.
Last edited by tigerbill on March 22nd, 2009, 11:00 pm, edited 1 time in total.

gc
Posts: 673
Joined: September 21st, 2002, 10:08 pm

### Should I tell the truth about current salary?

untwigged
Posts: 262
Joined: January 14th, 2006, 3:21 pm

### Should I tell the truth about current salary?

You tell the HH "My salary is X+Y", when it really is X. You get a job at a bank, with a new salary of X+Y+Z. HH tells the bank "Your previous salary was X+Y". Bank does a reference check and finds out your previous salary was really X.What do you think will happen here (especially in the current climate)? Hint: Your new salary will be 0.And if you think the bank won't check - you are mistaken. I almost lost a job once where I made a genuine mistake in writing down my comp history - an incorrect bonus I'd obtained 3 years previous was off by about 20%, and that came up on the reference check.

pipih2008
Posts: 91
Joined: June 27th, 2008, 2:07 pm

### Should I tell the truth about current salary?

its risky not telling the right salary but I heard some guys doing the same they "change" their salary from 150K to 500K to work back in their country and guess how much salary they have now?

ArthurDent
Posts: 1166
Joined: July 2nd, 2005, 4:38 pm

### Should I tell the truth about current salary?

QuoteOriginally posted by: gcHis optimisation problem was the same as mine: ask as much as possible (because his commission was a percentage of my salary) but not too much at the risk of loosing the opportunity....That's not correct since your HH works on commission of the whole salary not just the delta you get over your previous salary.Your problem = how to get ${extra} on top of an easily agreeable${base}HH's problem = how to get 25% of the ${base + extra}.If he is too pushy on the extra, you may not get hired so he gets 0. He'd rather see you taking${base} with him getting 25% of it than him getting 0.

twofish
Posts: 4944
Joined: February 18th, 2005, 6:51 pm

### Should I tell the truth about current salary?

tigerbill: Should I tell the truth about current salary when HH asks me? If you answer the question, always tell the truth. You have the option of how to you tell the truth or of not answering the question. In this situation, I don't see how having a larger number will help you. If the only job that the HH has is your current salary + 5%, then you've priced yourself out of the market.

DominicConnor
Posts: 11684
Joined: July 14th, 2002, 3:00 am

### Should I tell the truth about current salary?

Last edited by DominicConnor on March 20th, 2009, 11:00 pm, edited 1 time in total.

iliketopology
Posts: 461
Joined: October 15th, 2007, 11:08 pm

### Should I tell the truth about current salary?

QuoteOriginally posted by: tigerbillShould I tell the truth about current salary when HH asks me? is it understandable when he finds my true salary is 10% lower than what i tell him?I mean, obviously what i want is an offer higher than current one, that is why i think to tell a bigger number.thanks.Yes, always. Also, be extremely careful about how much bonus you made - closest to the thousand. If you were wrong at the beginning, then while you are being made an offer, you shall get a second chance. Then make an initiative to correct the figures. Don't tell them how much you want unless asked. These are old fashioned rules but still true and will always be. It might even surprise you that some of the banks even do the criminal background verification. In some cases, they have even called the local police station in the prospective employee's country where you did your undergrad, worked , grew up. That is what they did in my case and gave me an entire report.
Last edited by iliketopology on March 21st, 2009, 11:00 pm, edited 1 time in total.

DominicConnor
Posts: 11684
Joined: July 14th, 2002, 3:00 am

### Should I tell the truth about current salary?

The legality of checking your criminal record that way varies a lot by country, in Britain it is itself a criminal act, but abuse is so widespread that the authorities have a policy of not prosecuting unless the media find out.

KackToodles
Posts: 4100
Joined: August 28th, 2005, 10:46 pm

### Should I tell the truth about current salary?

QuoteOriginally posted by: untwiggedYou tell the HH "My salary is X+Y", when it really is X. You get a job at a bank, with a new salary of X+Y+Z. HH tells the bank "Your previous salary was X+Y". Bank does a reference check and finds out your previous salary was really X. Easy. Just say "Oh, that was just my bank salary. I also manage my private investment fund, where I earned Y. But it's a private fund and the imformation cannot be publicly disclosed."

quantmeh
Posts: 5974
Joined: April 6th, 2007, 1:39 pm

### Should I tell the truth about current salary?

QuoteOriginally posted by: tigerbillShould I tell the truth about current salary when HH asks me? is it understandable when he finds my true salary is 10% lower than what i tell him?how can a lie be understandable? simply don't tell your salary if it's embarrassing

pipih2008
Posts: 91
Joined: June 27th, 2008, 2:07 pm

### Should I tell the truth about current salary?

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Last edited by pipih2008 on April 3rd, 2009, 10:00 pm, edited 1 time in total.

deepvalue
Posts: 918
Joined: April 25th, 2007, 6:08 am

### Should I tell the truth about current salary?

QuoteOriginally posted by: jawabeanhow can a lie be understandable? simply don't tell your salary if it's embarrassing if you are worried your salary is embarrassing low, just give us a number and we'll tell you if you are being screwed.

rmax
Posts: 6080
Joined: December 8th, 2005, 9:31 am

### Should I tell the truth about current salary?

never Ever ever lie in business for all the good reasons that people have posted above...However make sure that when you discuss your salary with the HH you talk about your Total Comp. Salary, recent bonus, pension, investment plans, RSUs - the whole lot. You can then calculate whether you are getting a good deal on yor new role. This is not being dishonest, it is making sure that your full worth is taken into account.

tigerbill
Topic Author
Posts: 360
Joined: April 22nd, 2004, 7:14 pm

### Should I tell the truth about current salary?

ok, thanks all, now i understand.The reason I asked this question is because my current company provides additional compensation which was not included in the contract (and salary payslip, either), for instance, meal, insurance. that is why i thought to add 10% to my actual salary. I was wrong, now i know how to reply such a question by HH.
Last edited by tigerbill on March 22nd, 2009, 11:00 pm, edited 1 time in total.