During an interview, how should you respond when asked What were your starting and final levels of compensation?

Difficulty: Easy

Correct Answer: Answer honestly with approximate figures, clarifying fixed pay and major components, and keep the tone factual and professional

Explanation:


Introduction / Context:
Questions about past compensation help employers understand your market level, seniority, and expectations. When an interviewer asks about your starting and final levels of compensation, they expect a straightforward and honest answer. How you respond also reveals your professionalism and comfort discussing money matters in a business context.


Given Data / Assumptions:

  • You have received salary, allowances, and possibly bonuses in previous roles.
  • The interviewer may want to understand your growth over time.
  • You are aiming for fair compensation in line with your skills and the role.
  • Some regions have legal constraints on salary history questions, but in many places they are still common.


Concept / Approach:
The best approach is to share honest information in a clear and simple way, while maintaining your negotiation position. You can give rounded figures and briefly explain the structure, such as fixed pay, variable pay, and major benefits. This shows transparency and builds trust. Later, when discussing expected salary, you can focus more on market value and role responsibilities rather than only on past numbers.


Step-by-Step Solution:
Step 1: Prepare a brief summary of your starting and current or final salary, including key components such as basic pay and variable incentives. Step 2: When asked, share the information calmly, using approximate monthly or annual figures as appropriate. Step 3: If there are special factors such as unusually low pay in a start up or generous benefits, you can mention them for context. Step 4: Avoid complaining about your current salary; keep the tone factual and neutral. Step 5: If the conversation moves to expectations, emphasise your understanding of market ranges and the value you will bring in this new role.


Verification / Alternative check:
Ask yourself whether your answer would be consistent if the interviewer cross checked your salary history in background verification. If you are honest and clear, there is no risk of later embarrassment. Being open about past compensation also helps you and the employer have a realistic conversation about future pay that fits both sides.


Why Other Options Are Wrong:
Option b is very confrontational and may create unnecessary tension with the interviewer. Option c involves exaggeration or lying, which can backfire during verification or damage trust. Option d avoids the question without reason, which may make you appear evasive or unprepared to discuss standard business topics.


Common Pitfalls:
Some candidates overshare details or become emotional when discussing salary, which can distract from the main purpose. Others understate or inflate numbers in ways that are easy to detect. To avoid these traps, prepare your figures in advance, practice saying them calmly, and treat the question as a routine part of professional discussion rather than something to fear.


Final Answer:
You should answer honestly with approximate figures, clarifying fixed pay and major components, and keep the tone factual and professional.

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