Explaining a Salary Dip

Dear Debra:

What is the best way to explain a dip in salary? I took a new job four years ago. The salary was $8,000 less than the salary at my previous employer. I left because I was concerned that the company was going under. I was worried about long-term unemployment. I was 42 at the time and with a family could not afford the risk. Now I am searching for a new job. In a recent interview, the interviewer noticed the dip and asked. I explained what I said ,to which he asked – “Did the company go under?” The thing is…it did not. They were bought by a Canadian company and survived. I guess I misread the situation. What do I say next time?

Thank you,

Ben

Dear Ben:

The hiring employer will have your salary history from the job application you complete at the interview. As you would in all aspects of your job search, it is best to be honest. With that said, you also want to be complete in your answers. Did the new job offer other compensation, such as paid time off, educational support, or other perks above the former employer? Over the past four years, how much has your compensation grown? Have you had increases above the company average?   Those facts support your value and are worth sharing with the interviewer.

Additionally, explain your reason for leaving. It is alright to say that you had information that indicated the company might not make it. Rather than risk your career and your family’s future, you decide to take a step back in order to ensure continuous growth in the future. You were not in senior management and did not know of the takeover. Even if you knew of the takeover, there was no assurance that your office would remain status quo. You calculated the risk and make the best decision possible at that time.

I wish you all the best in your career!

Debra