Pay Rates and the Job Application
Virtually every job application out there will have a space for you to list pay rates for your current and previous positions.
Early in my work life I would include what I earned on any job application without a thought as to how it might affect my ability to negotiate my future pay rate. There were times when this hurt me and times when it helped.
After I became involved in hiring from the other side of the desk, I realized that if, as a candidate, I had been more strategic in my approach, I would have been in a better position to
negotiate salary successfully.
Two Basic Choices
You have basically two choices when it comes to providing your pay rates:- List them as requested.
When you decide to list pay rates make sure they're accurate. Once you sign that employment application you've stated that everything on it is true and correct. Know too that when you list your current or previous salary it will very often be used to temper any offer that's made to you. - Don't provide them.
When listing your pay is not recommended, the strategy is to write 'confidential' in the salary blank. Whether or not Human Resources accepts that answer will depend upon the company. This action tends to be more acceptable when the company doesn't base an offer of employment on a person's
previous salary history.
And because policies differ, it's worth a try. Keep in mind too, that you run a slight risk of getting 'dinged' for not being willing to divulge this info. Of course, if you are prohibited from revealing your salary by a non-disclosure agreement, 'confidential' is the only answer you can give.
The challenge is to understand which choice to make. What do you put on the employment application when it asks for salary info and you want to maximize your negotiating leverage?
(Current Must Read) It's a given that for any approach to work you must be qualified for the position. Which approach is the best option will depend upon: - Whether or not you know the company's hiring range
- Where your current (or most recent) pay is in relationship to the hiring range
- Where your future pay requirements are in relationship to the hiring range
- Where you are in the hiring process when you fill out the employment application.
Let's look all the other variables in the context of the last one:
where you are in the job getting / employee hiring process.
You Have Not Yet Been Invited to Interview
If you are filling out an application on-line or have otherwise been asked to complete and submit this form before you have been invited to interview, be aware that the information you share has the potential to knock your candidacy out of contention. For that reason it is not advisable to share your pay rates on the application if: - Your current pay and/or future requirements are at the very top or bottom of the hiring range
- You haven't been able to
determine the hiring range.
Unless giving your previous salary is strictly required write confidential in those blanks instead.You want to be able to personally sell yourself and address any concerns a hiring manager may have about meeting your pay expectations. You won't get that chance if you're not invited to interview. If giving salary information is strictly required, you must decide whether to proceed or not. Know too that if your current pay rate is at the low end of the hiring range, being
underpaid
has the potential to work to your advantage.
You Have Been Invited to Interview
You also know the company's hiring range either because it was readily disclosed or you've been able to make an educated estimate based on the position's overall salary range or the conversation during the phone
screening interview.
(If not see above.)Consider the hiring range to be the negotiating range. By this point you should have already determined that your future requirements fall within this range. So, if... - Your most recent (or current) pay rate is in the top half of the hiring range. It makes sense to list your pay on the application. It will support your case for the upper end of the hiring range when it comes down to the offer.
- Your current (or most recent) pay rate is above the hiring range (but you're willing to accept a rate that is within the range) and you're sitting in the company's offices filling out the job application just prior to the interview. Your negotiating position may be strengthened by listing your pay.
In both the situations above you know you will have an opportunity to discuss your situation in the interview.- You are scheduled to interview but are required to complete and submit your application a few days prior to your scheduled meeting time. Provide your last pay rate only if it is within the upper half of the hiring range.
- Your current (or most recent) pay rate is in the lower 1/2 or even below the hiring range altogether. Avoid listing your pay rate if at all possible. You may be able to head off a low ball offer.
In the end, whether or not you show your current or most recent pay rates on the application will depend upon what HR will allow as well as your own individual circumstances. Understanding your options will help you decide which is best for you.
Current Must Read:
Choose your course of action with the current state of the economy in mind.If you are working and looking to make a change or if your actions are restricted by a non-disclosure agreement, the advice above fits your situation. However, if you are unemployed in today's market and you find an opening to which you are well matched, do everything the company asks (within reason) and win the job. We all have to eat. You can re-evaluate your situation once the economy turns around. At that point you'll be in a better position to make a change should you decide your then current position doesn't meet both your short term and long term best interests.
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Negotiate Salary Successfully by Knowing How to Answer Questions About Pay
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