RE: W2 to 1099 Conversion Rule Of Thumb?

[eric -dot- dunn -at- ca -dot- transport -dot- bombardier -dot- com]

Lisa Wright wrote on 12/02/2004 01:51:39 PM:
> Salary history IS a factor. Seen it time and again. I'm 
> not saying it's always right, but it's a fact.

Well, it's like any other piece of non-applicable information in any 
exchange. If the person being questioned will give it to you, why not ask 
to gain the advantage? In many domains, there are questions that are 
illegal to require answers to but not illegal ask for (in Canada asking 
for S.I.N. numbers for the purpose of a credit check for example). 
Equally, there are questions that are outright illegal to even ask and 
base decisions on, but if the other person freely offers the information 
without being prompted, it'll be used.

> It works to the benefit of those who have had the guts or luck to ask 
> for and get high compensation, and it can work against 
> someone who hasn't.

And will dog them until they have the fortitude to simply ask the 
interviewer why it's relevant or they learn the market well enough and 
have enough confidence in their skills and knowledge to insist on a 
certain placement in the current market.

> Salary history and market rates can 
> modulate each other--someone with a high history in a 
> market that's depressed will probably get less than they 
> wanted because the market no longer supports the previous rate.

But, they'll NEVER modulate each other up by much. If you reveal your last 
salary to a prospective employer and it's $15,000 a year less than they 
were willing to start negotiating at do you think they'll start at the 
same amount? No. They'll first offer you as little as they think they can 
get away with.

> Also, I'm not saying that you have to reveal your history 
> first. We've discussed good negotiating techniques here 
> often. There's no rule that says that you have to let a 
> potential employer walk all over you in any regard, not 

Indeed, there are no rules. And you'll never convince me that you have to 
reveal your salary history EVER. In poker, it's not a "rule" that you 
shouldn't show your hand to the other players. But if you were asked, 
would you?

> Eric, both sides play this game. Employers 
> and employees both have advantages and disadvantages that 
> fluctuate over time.

Sure, both sides play a game. But it's a game with no hard written rules. 
And no I don't agree that there are advantages and disadvantages that 
fluctuate with time. The market (supply and demand) fluctuates but offers 
little in the way of advantages or disadvantages to employers or employees 
other than determine average market prices. Lean times simply eliminate 
those that have poor job search skills or technical ability and those who 
can't adapt their salary to demand (or adequately justify their above 
average prices) and good times let those who can negotiate take advantage 
of good rates and those that have a lack of skills to become 'fortunate' 
and land gigs at desperate employers. Goods skills and good negotiating 
will get you above market prices in good times and bad.

> I don't view it as a zero-sum game. 
> If the two parties like each other, they work together 
> (negotiate) to meet each others' needs.

No. The employer negotiates to meet their needs, you negotiate to meet 
yours. Sometimes you compromise, other times you don't. If the employer 
makes the initial offer and it's beyond your wildest dreams, keep a 
straight face and ask for a little more. Even if it's just a parking 
space, time off, or the choice of cubicle or office. ;)

Next time you're asked for salary history, ask the interviewer why they 
think it's important or relevant. The only answer I've got back is that 
they don't want to "underbid" and have wasted our time interviewing. I've 
often answered that if they already have a salary range and are willing to 
negotiate right away that I'd be willing to start with the job offer and 
salary and then evaluate the compatibility between my skills and the job 
requirements. Or, if they have a ceiling to their budget, they can just 
tell me and I'll decide whether to continue the interview or not. Salary 
history suddenly loses all importance and the job interview continues.

Or, offer to discuss your salary history if and only if they'll first give 
you the market range for the open position. Then when negotiating salary 
(assuming you agree with their range) argue based on your perception of 
your position with respect to market average skills and knowledge.

Eric L. Dunn
Senior Technical Writer

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