What Does Salary History Mean?
Businesses want to know as much as possible about potential employees. This is necessary to ensure that a new hire will be a good fit for the company. Some employers ask for a salary history with a resume or CV and cover letter. Not every employer will do this, but you need to understand what salary history means to respond to a salary history request professionally.
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Definition
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Salary history refers to a presentation of the earnings you had in previous jobs. When a potential employer asks for your salary history, they're asking that you provide a single document that lists your previous jobs and the amount you were paid in those positions. Sometimes, employers ask for you to present your salary history orally during job interviews. Salary history should not be confused with a salary requirement. Salary requirement is the pay you will accept at a new job.
Constructing a Salary History
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Salary histories must be presented in a business format. They must be in black ink on plain white or off-white 24-weight paper. Salary histories should be in reverse chronological order, with your most recent salary listed first. For each job, list your job title, the company, the city and state in which you worked, and the dates that correspond to your employment. Put your salary under this. You may present your salary as one annual salary, or your beginning and ending salary. Presenting beginning and ending salaries will show how your value to a company increased over time.
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Advantages
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From the employer's perspective, salary histories are valuable because they help the employer decide if you are qualified for the job. Salary histories also let employers negotiate with applicants. If an applicant's history shows figures much lower than the advertised salary for the open job, employers sometimes try to get the applicant to accept a rate closer to what they earned before. From the employees perspective, salary histories provide tangible evidence of the worth of their skills and knowledge. They can prove that other companies put a specific dollar figure on what they did, leaving the employee some room to ask for a higher salary.
Disadvantages
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Reviewing salary histories takes time and can be tedious, particularly if the job search is on the national level and hundreds of applicants apply. Some qualified applicants will not apply to positions where salary histories are required. They know employers use salary histories as screening tools and feel the practice is discriminatory. Additionally, some individuals are at a disadvantage because they didn't work in "regular" jobs. For instance, students often have work-study positions that pay under $10, or they work only a few hours a week. A salary history may misrepresent the skills and potential of these workers.
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References
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