As a former business advisor, I am often asked questions about the hiring processes that are common among many companies. One popular question that I am asked is, “Why do some companies require a salary history while others do not?”
Companies that Require a Salary History
Companies that require a salary history usually use the information that you supply to decide if you might be interested in their job in the first place. This information is supplied during the pre-interview process and gives some employers an idea of how much money you are looking for in the first place. If your requirements are too high compared to what they are offering, they might not call you for an interview.
Other companies use the information from your salary history to figure out your possible net worth to companies that you have worked for in the past. Workers that make substantial amounts of money might be considered first as they had a higher net worth than those that were paid on lower ends of the scale.
Companies that Do Not Require a Salary History
Companies that do not require a salary history base their philosophy of not asking for it based on one of two reasons. The first reason who be that it is impossible to verify this information. In almost every state, it is illegal to ask an employer how much was paid to past employees. These companies are not interested in information that cannot be verified.
The other reason why a company might not required your salary history stems partially from the first reason. Since many people know that their salary history cannot be verified. They will do what they can to, “fudge,” their numbers. These people believe that if they put themselves on the higher ranges of the scale, companies will be inclined to pay them more money.
The next time that you apply for a job, pay attention to the companies that require a salary history. While you should not, “fudge,” your answers, realize that this information might be used to either call you in for an interview, or might be used if they consider offering you a position.