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Michael Page changes lives for people through creating opportunity to reach potential.
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After many years in recruitment, one question comes up time and again: "Why do I need to disclose my last-drawn salary?"
Many candidates wonder why their current salary matters when applying for a new role. After all, shouldn't employers make an offer based on the responsibilities of the role, market conditions and the value a candidate can bring?
It's a fair question.
One of the most common concerns is that if someone is currently earning below market level, future salary offers will continue to be influenced by that figure.
While every hiring situation is different, there are several reasons employers and recruiters ask about salary during the hiring process.
In this article, we'll look at:
Whether it's a multinational corporation or a local business, many employers require a candidate's current salary before approving an offer.
This is often part of the internal decision-making process. Salary information helps hiring managers explain how an offer has been determined and ensures it aligns with the company's salary structure and budget.
The idea of a "market rate" sounds straightforward, but salaries can vary significantly depending on industry, company size, location, business performance and individual experience.
Understanding what a candidate is currently earning gives employers a clearer picture of expectations. If a company's budget is unlikely to meet those expectations, it's often better for everyone to know early in the process rather than much later.
Having these conversations upfront can save both candidates and employers valuable time.
Job titles can mean very different things from one organisation to another.
In some companies, employees have relatively modest titles while managing significant responsibilities. In others, titles may sound more senior than the scope of the role suggests.
For this reason, salary can provide additional context about a candidate's level of responsibility, experience and seniority. It helps employers build a more complete picture alongside a CV, interview performance and professional achievements.
As a general guide, candidates changing jobs often target a salary increase of 10% to 20%.
That said, there is no fixed rule. The appropriate increase depends on factors such as your experience, specialist skills, market demand and the responsibilities of the new role. Before deciding on a figure, it's worth understanding how to research your market value and negotiate salary effectively.
If you believe your current salary does not fully reflect your experience or market value, there are ways to support a higher salary expectation.
Being open about your salary expectations from the beginning helps create a more productive hiring process.
Some candidates prefer to discuss compensation later in the process. While that approach can sometimes work, sharing your expectations early can help avoid misunderstandings and ensure everyone is working towards the same outcome.
If you're seeking a larger increase, make sure you can clearly explain why. Similar principles apply when building a strong case for higher compensation, whether you're changing jobs or discussing a pay rise with your current employer.
Your experience, achievements, specialist expertise or additional responsibilities may justify a higher salary. The clearer your case, the easier it is for employers to evaluate your request.
It's also important to consider your total compensation package.
You may receive bonuses, commissions, share options or other forms of variable compensation. Be prepared to explain how these contribute to your overall earnings and, where possible, provide supporting information.
Keep in mind that employers may view variable compensation differently from guaranteed salary. Even so, having a clear picture of your total earnings can help support a more informed discussion.
Candidates with a strong track record, consistent career progression and in-demand skills are often in a stronger position to negotiate salary.
Similarly, professionals working in specialist or high-demand areas may have greater flexibility when discussing compensation.
Understanding how your experience compares with current market demand can help you set realistic expectations and approach salary discussions with confidence.
It's natural to want a salary that reflects the value you bring.
While compensation is an important part of any career move, understanding employer expectations, market conditions and how salary decisions are made can help you navigate the process more effectively.
Open and informed conversations about salary help candidates and employers make better decisions throughout the hiring process.
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