Employers often ask for salary history before an offer is made but are less likely to ask at the point of an application. However, salary history should be discussed during the interview process. This will help you get a better understanding of the company and what they expect from you.
Employers might want to know what other employees in your area have been making. They may also ask about your past salary.
Before you start sharing your salary history with prospective employers, you must first ensure that you are legally allowed to do so. Most of us aren’t even aware of this requirement because it is not in any sort of official documentation. Also, be careful that you do not disclose your salary history to your future employer until you are no longer under the protection of an at-will employment contract.
Why do employers want your salary history?
There could be several reasons, but a primary reason is to determine what kind of salary a particular job is worth to the company. This is an example of salary negotiation, and it is a good idea to be prepared for the possibility.
A salary history can be used to determine what the market is paying in a specific area. It can also help you to align your expectations with what you can reasonably expect from a position, or even your company.
Employers might consider an applicant’s current salary to determine if they are over or under qualified for a position. If the salary of the previous job is significantly higher than the current offer, it may not be a good match.
In some cases, the pay offered by a company may be far less than the job pays. This means that you might be paying a lot more in taxes than you’d be if you were working for someone else. For instance, imagine that a job you’re considering pays $80,000 a year and the employer’s offer is only $50,000. At the end of the year, your take home pay would be just $30,000, but your taxes would be almost twice that. It’s important to consider the cost of living when making decisions about where to work.
Some employers may consider adjusting their offer packages or posting a new job description based on the types of candidates who apply. For instance, if a company gets a lot of applications from applicants with high average salaries, they may need to review their budget for that position.
How to respond to a request for salary data?
It is possible that you will be asked to include your salary history in your resume or answer a question on the job application. It is possible to give the exact figure or give a salary range.
Do your research before submitting an application or applying for a job. Employers can verify previous employers while reference checking, which is why they’ll want to see where you’ve been as well as how you’ve performed in the past.
If you are asked about a particular topic on an interview, it’s important to be able to answer questions about that topic and also to be able to respond appropriately to other questions about the company or its products. If you find yourself unable to provide an honest answer to a question, you may want to decline or deflect the question. This will show your interviewer that you are being honest about your interest in the position.
It’s always a good idea to find out what is expected of a particular job before you start talking about your salary. After all, it doesn’t do anyone any good to discuss a number that might be way off base.
This is a great question because it shows that you are thinking on your feet and are aware of the business needs that need to be met. When you have a few things to do that aren’t listed, you can find out from your client what they expect you to provide.
How do I share my salary history?
Depending on how much you want to share, how much detail the employer wants, and what part of the process you’re asked to provide, you can communicate your salary history in three different ways.
Use a general number that doesn’t include exact numbers. Instead of providing a number such as “$50,000” use a range, or even a general number such as “$40k – $70k.” By providing a general number, you’re not saying anything specific. By not specifying the number, you are also giving the reader the opportunity to determine the number themselves.
Use a range. If your salary has gone up during your time in your current role, you may want to provide a starting salary and a current salary. It is possible to use this to fulfill an employer’s request and also show that you provided enough value to get a raise. It can be as simple as: “My starting salary is $50,000 and my current salary is $55,000.
- You have the option to give your exact salary or round it up. For example, If you make $44,750, you should round it up to $45.
- Provide an exact number. You can either give your exact salary or round it up to the closest number. For example, if you’re making $73,750, you may want to round up to $74k.
Include all the extra compensation you receive, including anything you receive in addition to your base salary like tips, regular bonuses and commissions.
Is it a good idea to always give previous salaries to employers?
It is a good idea to ask potential employees about their current salaries and what they are looking for in a new position because that will provide an accurate picture of your hiring expectations and it will also allow you to give them some salary history information. The information about salary history can help the employer in determining whether to proceed with your candidate or not.
It is important to always provide accurate, up-to-date, and complete information on every single application form. You might think that this is just the same as the information you give to an interview or even to a reference check. This is not so!
If your employer doesn’t ask for a salary history, you may be asked for your preferred range. The reason is that some companies might want to pay you less than what you think you are worth, as well as more than what you think you are worth.
If you do not want to disclose your current salary or salary expectations to a potential employer because you don’t feel you know enough about the role or prefer to discuss the matter in person, you can simply tell them that you’re currently considering a range of salaries.
Also check, 8 Things To Do After Quitting Your Job
You’ll want to take a step back and think about the problem you’re solving as well as your company’s history. What made you decide to solve this problem? What was the impetus behind the need for your product? It’s important that you can share these insights with a potential partner or customer.