Why Do Interviewers Ask for Salary Details in Job Interviews?

You’ve probably noticed a lot of talk on LinkedIn about interviewers asking for salary details. People often ask, “Why don’t you just evaluate me based on my skills and decide a fair salary? Why do you need to know my past salary? Is it just to offer me less?”. It’s a common concern, and many feel that salary history questions are used to keep their offers low.

As someone who’s interviewed hundreds of people, I get it. But here’s the thing. I still ask about salary details, and it’s usually one of the first questions I ask. My goal isn’t to pay you as little as possible. In fact, in a big company, there’s no personal benefit to me in offering a low salary. Let me explain what goes on behind the scenes.

1.Understanding Present Salary

When I interview candidates, I form an impression of their experience and map them to multiple roles within the organization. I also compare their skills and experience with existing team members and use this to match them with the company’s salary structure, or “salary bands”. If your current salary is way higher than what we can offer, I need to figure out if it’s worth moving forward. On the other  hand, if your salary seems too low for your skill set, it raises questions.

For instance, if a .Net Architect or a device driver expert is being paid far below the market standard especially if they’ve switched jobs several times it might indicate that they’ve prioritized acing interviews over delivering value in their roles. I also look closely at long-term employment. For example, the difference between a candidate’s joining salary and their final pay after several years with the same company. This provides insight into how the candidate was perceived and valued over time.

However, some candidates possess great skills but come from industries where pay standards are low. A candidate working for a smaller, local business may have a much lower salary despite impressive technical expertise. In such cases, the low salary is a reflection of the employer, not the candidate’s ability, and I’d be comfortable proceeding.

2. Why We Ask About Expected Salary

When it comes to expected salary, what I offer isn’t based on negotiation but on the company’s salary band. After the effort it takes to hire, why would I risk upsetting someone by offering a lower salary compared to my existing team members? I wouldn’t. However, I still ask about the salary candidates think they should get.

If a candidate’s expected salary doesn’t fit our salary band, I might reject them because they may not accept the offer. If someone accepts a lower offer, I need to understand their motivations. I want my organization to have motivated and aligned employees. If something other than money motivates them, it’s good to know. For example, a working parent might value staying closer to home over a higher salary.

There are times when employees accept a lower salary and later feel unhappy because they sacrificed something. Worse, some employees act as if they’re doing us a favor by working here. On the other hand, if someone is passionate about our company’s goals, it usually shows during the interview.

Some candidates value work-life balance more than extra money, and this can be useful for balancing team needs. There are highly productive employees who work hard and expect higher pay. If a candidate seems too desperate without being open about the urgency, it raises concerns about potential conduct issues, which I need to consider and rule out.

It’s perfectly fine for someone to accept a lower salary than their current paycheck, but as a hiring manager, I need to know their motivation.

Now, let’s talk about candidates who demand a lot more money. Usually, we screen for this during initial stages, but sometimes, as candidates clear each round, they become more demanding. This can cause issues. Anyone paid higher than the salary band median is an outlier, and the technical interview feedback should justify the higher salary. If a candidate has rare skills and is expected to perform well, it’s documented, and an offer is made.

There’s also the scenario of salary revisions. Suppose a candidate joins in August and the salary revision happens the following year. They wouldn’t get a raise for one and a half years, while others might. To avoid this, I might offer a higher initial salary but make the pay hike period clear.

Sometimes candidates initially agree to the standard salary but then receive a better offer and want to negotiate for the best of both worlds. They want the work, stability, and culture we offer but the salary of the other company. This might mean they’re not a good fit, even if they’re skilled. Additionally, some people resign, get a counter-offer, and then try to negotiate with us.

3.Reviewing Past Salary

I occasionally look into a candidate’s past salary history, especially when they’ve switched jobs frequently. Some hiring managers reject candidates outright for too many job changes, but I prefer to dig deeper and understand the reasons behind these moves. Salary changes during previous job transitions can offer useful insights.

For example, I might ask about the pay hikes a candidate received in their last few roles. If someone has switched jobs three times in four years and received significant raises each time, it could indicate that they’re primarily motivated by money. This isn’t always a bad thing, but it does raise questions about their commitment to the company in the long run.

On the other hand, if a candidate has moved for a combination of reasons such as career growth, skill development, or better work-life balance. I’m more likely to see those transitions in a positive light. While salary is a key factor, it’s not the only one. Understanding the story behind job changes helps me assess whether the candidate is likely to stay with the company for the long term.

Conclusion

At the end of the day, asking for salary details isn’t about trying to offer the least amount possible. As a hiring manager, I need to ensure that both the company and the candidate are aligned. Salary is just one part of the overall picture. By understanding your current salary, expected pay, and past earnings, I can make a more informed decision about how you fit within the company’s structure and if the role will meet your needs.

Ultimately, it’s about finding the right match where both the company and the candidate are happy with the outcome. Whether your motivation is money, career growth, or something else, being transparent about salary expectations helps create a clearer, more balanced conversation that leads to better hiring decisions.