Are companies really requesting salary histories? 5

[Lion06]

Because of some personal issues, I've been looking for employment in a different geographical region. I haven't sent out any resumes yet, but I've noticed that every website I visit asks for salary history to be included with your resume. Is this common? This was not true when I was looking for a job after graduation 5 years ago.

I don't have too much of a problem providing that information, but I honestly feel like it's kind of irrelevant. Honestly, if I were to be offered what I'm making now or 5% more, I feel like we'd be getting off on the wrong foot when I pretty much tell them to pound sand by actually saying that my current salary is not a reflection of the value I bring to my employer, but more of a reflection of the economy as a whole. I would also say that I really have no interest in them basing their salary offer on my current salary, but would think it should be in line with their needs; the value, technical knowledge and ability, and work ethic, I bring with me; and what the going rate is for someone with my experience level (not that it's that much, but I'm not a fresh grad). I just feel like that's really starting the relationship off on the wrong foot.

Any opinions?

 

[Ron]

SEIT...yep, salary history is fairly common. You weren't asked after graduation because it's not relevant to new graduates.

The reason for this is to see your progression. It's a waste of time and effort for both parties because it means little to nothing. One of the primary reasons you leave one company is to better yourself in salary and benefits. For a company to rely on this information to make you an offer is just so they can make the lowest offer they think you might accept.

Give it to them, then negotiate hard...tell them if you wanted to stay at the same salary you'd stay at the same place!

 

[photoengineer]

What I've decided is that I will never share my salary information with any future employer. If they refuse to hire me because I won't provide that information, so be it.

It's personal and confidential data. There is no good "business case" for me to tell a prospective employer who has not extended an offer how much I currently make.

Hoenstly - would you tell a car salesman how much you have in your bank account?

(The reason why companies want that it is the cheapest and easiest way of collecting the data so they know how much to pay. Cheap employers will use it to decide how much to pay you, less cheap employers will use it to decide how much to pay engineers in general.)

Cedar Bluff Engineering

http://cedarbluffengineering.webs.com

 

[TheTick]

No reason to tell them the truth. It would be illegal for them to verify.

 

[kelowna]

There is something so wrong about a prospective employer asking that kind of question!

 

[photoengineer]

As a young engineer, I filled out the salary history accurately. (I was naieve but only 23 at the time.) I got my offer letter, accepted it, and then the hiring manager mentioned that he gave me a $5000 boost in my pay over my previous employer and I should be pretty happy about that. It dawned on me than had I written a different number maybe $10k higher, I might have received an offer $10k better.

(I wouldn't lie, but I sure will leave it blank and not show my cards next time.)

Cedar Bluff Engineering

http://cedarbluffengineering.webs.com

 

[berkshire]

The salary history is used by companies to weed out prospective employees, too high, no don't want him too expensive. Too low no, if he cannot get more than, that he cannot be any good.
How about this guy , he seems to be in the ball park, he is earning what we are prepared to pay.
And so it goes.
B.E.

 

[IRstuff]

Never been asked, but that might be unique to aerospace. I've heard that the HR people get together once a year to swap information.

TTFN

FAQ731-376

 

[SomptingGuy]

How else could employers claim to offer "competitive" salaries if they weren't all colluding or mining information from interviewees?

- Steve

 

[msquared48]

That's what I have been seeing in my job search too... Salary history requests.

Quite frankly though, it's been so long since I worked for anyone else, I can't remember...

Don't know if that's a liability or an asset...

Mike McCann
MMC Engineering
Motto: KISS
Motivation: Don't ask

 

[tygerdawg]

It's common practice, but I choose to ignore it like photoengineer above who presents excellent logic.

The primary reason for this info request was to immediately screen candidates who would surpass the position's budgeted salary. Then the HR Weasels found out that they could collect salary range data to define what a position should cost. Then the value of engineering positions got diluted because of hiring lesser-qualified folks, but that touchy subject has been debated here many times before.

I advise "don't do it" and double your efforts to bypass HR completely and target the hiring manager directly if at all possible. If your skills & qualifications meet the need, the company will find the money to pay you. But certainly if you ask too much you'll get ignored. With today's net resources available, you can easily get a good idea of what the going salary range is.

TygerDawg
Blue Technik LLC
Virtuoso Robotics Engineering

http://www.bluetechnik.com

 

[SomptingGuy]

The "HR weasels" in question prefer to call themselves "Rewards Management Executives".

- Steve

 

[MikeHalloran]

Weasels is a euphemism, representing much stronger words that we can't use in a public forum.

Apologies to actual weasels, who deserve better.



Mike Halloran
Pembroke Pines, FL, USA

 

[ajack1]

I think Berkshire is spot on, one of the downsides of agencies and on line applications is you often end up with over 500 applicants for one job, you have to crudely cut that number down some how.

Of course you don’t have to fill in any part of a job application form but it does decrease your chances of getting anywhere except the paper bin.

I do find the Ticks advice “No reason to tell them the truth. It would be illegal for them to verify.” totally amazing, that may be true in some countries but in the UK the previous employer would send all your salary details to the new employer, the Inland Revenue insist on this, so they will know exactly what you earned within a penny. To have lied would be grounds for instant dismissal.

 

[ScottyUK]

That is my understanding too: the Revenue requires that the old employer advises the new employer of earnings to date, although I don't think the new employer will know the makeup of the salary, for example bonus, overtime, etc.

I don't see any reason why an employer would need to know that information prior to offering a position other than to minimise their offer to the prospective employee. It certainly wouldn't be unreasonable to ask why the prospective employer needs that information and see what the response is.


----------------------------------

If we learn from our mistakes I'm getting a great education!

 

[shadow401]

It has been my experience that your previous salary is the number one factor in determining what a new employer will offer you. Most employers will only look at that number and will not consider your college, GPA, work experience, or the likelihood that you were probably over/under paid. I left this section blank in the last job application and was asked what my previous salary was LITERALLY 10 times during the interview. In a normal economy, it is in your best interest to add 5k or 10k to your previous salary and then tell them but right now I would steer clear of this question as best as you can.

 

[Bkerila]

Our company routinely asks for this information. I don't think it's at all useful for determining the going rate for a particular job level since all kinds of levels of people apply to open jobs. We participate in salary surveys to determine that info.
It does help to determine when people are priced out of the range of what we could possibly afford based on their experience.
We also ask for a desired salary so we can make sure we make an offer that is reasonable. I can certainly see where under-selling yourself on that could result in a lower salary than otherwise.
When it comes to determining salary though it has more to do with experience and maintaining internal equity with the engineers already employed at the company. It's sometimes a very tough process.

 

[Qshake]

If I can be allowed the Devil's Advocate position, what's wrong with providing what you make at your present job? That way, when an offer is to be made, the hiring manager knows where to start. Engineering managers that are hiring an engineer away from another company know full well that an increase is the norm. Anything less on either side and someone is going to be going through a painful process of negotiating, that often leaves both parties with bad temperments.

I've been through a couple of job changes at engineering companies and in no place was the HR group ever in charge of what salary offer was made or hire/fire situation. The HR group sets interviews with candidates selected by engineers and when hires are made, the HR group makes sure the paper work is filled out. I've never seen it any other way.

Regards,
Qshake

Eng-Tips Forums:Real Solutions for Real Problems Really Quick.

 

[Compositepro]

There is nothing wrong with being asked what your salary requirements are but even that is a can of worms. It is no ones business but your own as to what you earn.

I cannot imagine one employer giving another salary information.

 

[photoengineer]

Qshake,

Providing your salary history is bad for two reasons:

1) If you are currently underpaid (as I was straight out of college), it allows your next employer to also underpay since they see you already make very little.

2) If you are overpaid (and willing to take less), it means that many companies that you would like to work for won't even consider you. And there are many good reasons why you might be willing to work for less money than you currently make.

The company should extend to you what it considers a "good" offer to be based on the current pay practices among existing engineers. Then you can decide to accept or reject the offer or renegotiate.

Cedar Bluff Engineering

http://cedarbluffengineering.webs.com