When and how to disclose your salary requirements

Why Do Companies Want to Know Your Salary Information?

Companies request compensation information for various reasons. If your salary requirements (or salary history) are too high, employers may exclude you because they do not want to pay that amount, or because they believe you will not be happy working for a lower wage.

On the other hand, if your salary requirements (or salary history) are less than what the company is willing to pay, they may offer you a lower salary than another candidate.

To avoid being excluded or being offered a low salary, you should be cautious in describing your salary information.

What Are Salary Requirements?

Salary requirements are the monetary amount that a person needs to accept a job. Salary requirements depend on several factors such as:

• Previous salary history
• Work experience
• Skills
• Industry
• Cost of living

Sometimes, an employer may ask you to include your salary history instead of (or alongside) salary requirements. Salary history is a document that contains a list of your previous wages. The document usually includes the name of each company you worked for, your job title, your salary, and the benefits package you received.

The difference between the two is that salary history is what you were actually earning in your previous job. Salary requirements are what you expect to earn in your next job.

Is It Legal for Employers to Ask Your Salary Requirements?

Employers can legally ask you to state your salary requirements or expectations. However, some states and cities restrict employers from asking about your previous salary information.

Please note that depending on your location, it may not be legal for employers to request information about your salary history. Check with your state’s labor department for the most up-to-date information on this matter, along with the laws that apply in your city and state.

Salary Requirements: Include Them or Leave Them?

If the job posting does not mention it, do not provide any salary information at all. There is no need to raise an issue that may not be important. In fact, you want the potential employer to bring up the topic of compensation first.

If you are asked to include salary requirements with your application, you can ignore the request, but that means you risk not getting an interview. Nothing irritates employers more than candidates who do not follow the instructions in the job posting.

However, there are some ways you can provide the requested information while minimizing your risk of being excluded or offered a low salary.

Tips for Including Salary Requirements

To stay in the job race without committing to a low salary, try one of the following options:

• Specify a salary range
• State that your requirements are negotiable
• Do not mention a specific salary

Tips for Including Salary History

If you are asked to include your salary history, you can also present your previous salaries as ranges rather than specific amounts. But in any case, always follow any specific instructions on how to include salary history. And remember that it is not necessary to share it in some locations.

If the employer provides specific instructions on how to present salary requirements, follow those guidelines. For example, if they tell you to provide a specific dollar amount (rather than a range), do so.

Regardless of how you include your salary history, always be honest. It is easy for potential employers to verify your salary with previous employers. Any false information will lead to your exclusion from the application process.

Where and How to Include Compensation Requirements

Salary requirements can be included in your cover letter with statements like “My salary requirements are negotiable based on job responsibilities and the overall compensation package” or “My salary requirements are in the range of $40,000 to $45,000+.”

Make
Your reference to salary requirements is brief so that the employer can focus on the rest of your cover letter. If the employer asks you to include salary requirements in a different way (for example, in your resume), make sure to do so.

You can include your salary history in several ways:

• You can include the history in your cover letter, mentioning what you currently earn. For example, you might say “I currently earn in the mid-forties.”
• You can include a detailed list of your past salaries (or salary ranges), either in your resume or in a separate salary history page that you attach to your resume and cover letter.

Key Conclusions

Some employers may ask you to include your salary requirements or salary history when applying for a job opening. In some locations, it is legally prohibited for employers to request your salary history. There are several ways to present salary requirements, including specifying a salary range and stating that you are willing to negotiate. Always follow the instructions in the job posting – if the employer requests salary requirements, it’s best to provide them.

The information contained in this article is not legal advice and does not substitute for legal counsel. State and federal laws change frequently, and the information in this article may not reflect your state’s laws or the latest changes in the law.

Source: https://www.thebalancemoney.com/when-and-how-to-disclose-your-salary-requirements-2058756