**Share Your W-2?**

By Jobtransparency Blog
Published on September 30, 2024
Navigating the Complex Landscape of Salary Negotiations
In today's competitive job market, employers are increasingly requesting access to sensitive financial information from potential candidates. Specifically, they're asking for W-2 forms, which reveal an individual's past earnings. But should you comply with this request? The answer is not a simple yes or no.
Consider two recent scenarios: a sales professional relocating to a new city was asked to provide four years' worth of W-2s, while another candidate, who had recently completed an advanced degree, was asked for a W-2 to verify their past salary. In both cases, the employers were seeking to determine the candidate's value based on their previous compensation.
While it's understandable that employers want to know how much a candidate was paid in their previous role, providing a W-2 can be a double-edged sword. On one hand, it can provide a benchmark for future salary negotiations. On the other hand, it can limit your ability to negotiate a higher salary if you were underpaid in your previous role.
So, what are your options? You can either provide the W-2, risking that your past earnings will influence your future salary; refuse to provide it, potentially jeopardizing your candidacy; or take a more nuanced approach, explaining why your W-2 may not accurately reflect your value.
The latter approach requires tact and strategy. You could explain that your W-2 doesn't account for differences in cost of living, job responsibilities, or industry standards. Alternatively, you could provide research-based evidence of the going rate for your previous role.
Ultimately, the power dynamic in salary negotiations still favors employers. However, some companies are taking steps to address salary inequality by promoting transparency. For instance, Buffer and Whole Foods have made salaries publicly available, while Gravity Payments has implemented a $70,000 minimum annual salary.
As we move forward, it's essential to rethink the way we approach salary negotiations. By promoting transparency and fairness, we can level the playing field between companies and employees. Will you join the conversation?