Q & A: Salary History vs. Salary Requirements
Q: I see job postings where employers ask for resumes, cover letters and salary histories. I’m always a little hesitant to provide that information up front. I have had a tough time managing on what I’ve historically earned and require more income. Is it acceptable to send my salary requirements instead of salary history?
A: You’re right to be a little hesitant in giving your income history. If you’re playing a high-stakes poker game, for instance, would you gladly volunteer to let everyone see the cards you’re holding when you can’t see theirs?
Not likely.
The same goes for your job search. Telling employers what you have earned gives them the power in any salary negotiations you might have.
Providing your salary requirements, though, is a mixed bag. True, you’re giving the employer some negotiating power, but you’re reserving a great deal for yourself. If an employer can’t – or won’t – afford your stated salary requirements, then you have effectively screened them out.
You asked if it would be acceptable to provide your salary requirements in lieu of your salary history. And, here again, it’s a mixed bag. Some employers will accept it and some will not.
Now let’s look at what is the wisest course of action. As discussed above, we know: 1) providing your salary history gives all of the power away; 2) some employers will not accept your salary requirements when they specifically asked for your salary history; and 3) providing your salary requirements instead of salary history reserves bargaining power for you.
Given this, it would appear to be wiser and more prudent to provide salary requirements instead of salary history.
IN THE CARAVAN: Reserve bargaining power by providing salary requirements instead of salary history
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You make an interesting comparison that illuminates important issues for job-seekers. It's critical to think through both topics as you approach a job interview, and to some degree, gauge your course of action based on the nuances you gather during the interviewing process.
I blogged about this topic at The Salary Reporter--see link above.
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