Should You Include Salary History on Your Resume? A Comprehensive Guide
In today’s job market, the question of whether or not to include your salary history on your resume is a complex one. While some employers might appreciate the transparency, others might use it to lowball you or screen you out based on past earnings rather than your current value. This comprehensive guide explores the pros and cons of including your salary history, provides step-by-step instructions on how to do it effectively if you choose to, and offers alternative strategies for navigating the salary conversation during the job application process. We will also address legal considerations and evolving trends in salary transparency.
## Understanding the Debate: Should You Include Salary History?
The decision to include or exclude salary history is not a one-size-fits-all answer. Several factors influence whether it’s beneficial or detrimental to your job search.
**Arguments in Favor of Including Salary History:**
* **Transparency and Efficiency:** Some employers believe that including salary history streamlines the hiring process by quickly aligning expectations. It can save both you and the employer time by preventing mismatches in salary expectations later in the process.
* **Meeting Employer Requirements:** Occasionally, a job posting will explicitly request salary history. Ignoring such a request might disqualify you from consideration.
* **Demonstrating Growth:** If your salary has consistently increased over time, including your salary history can showcase your career progression and increasing value. This is particularly helpful if you’re applying for a higher-level position.
**Arguments Against Including Salary History:**
* **Potential for Lowballing:** Employers might use your past salary as an anchor, offering you a salary that is only marginally higher than your previous earnings, even if your skills and experience warrant a significantly higher compensation.
* **Discrimination:** In some cases, salary history can perpetuate pay gaps based on gender or race. If you’ve been historically underpaid, including your salary history can disadvantage you in future negotiations.
* **Irrelevance to Current Market Value:** Your previous salary might not accurately reflect your current market value. Factors such as industry changes, increased experience, and new skills can significantly impact your worth.
* **Legal Restrictions:** Many states and cities have banned employers from asking about salary history. Including it proactively might inadvertently violate these laws and raise concerns for the employer.
## Legal Considerations: Salary History Bans
Before deciding to include your salary history, it’s crucial to understand the legal landscape. Many jurisdictions have enacted salary history bans, which prohibit employers from asking about or using a candidate’s salary history to make hiring or compensation decisions. These laws aim to promote pay equity and prevent the perpetuation of wage gaps.
**Key Aspects of Salary History Bans:**
* **Prohibition of Asking:** Employers are typically prohibited from asking candidates directly about their salary history, either verbally or in writing.
* **Prohibition of Using:** Even if a candidate voluntarily discloses their salary history, employers are prohibited from using it to determine salary offers.
* **Geographic Scope:** Salary history bans vary by location. It’s essential to research the laws in the state and city where the job is located.
* **Exceptions:** Some bans may have exceptions, such as for internal transfers or promotions.
**Staying Compliant:**
* **Research Local Laws:** Familiarize yourself with the salary history laws in the relevant jurisdictions.
* **Avoid Voluntary Disclosure:** Unless explicitly required and permitted by law, avoid voluntarily disclosing your salary history.
* **Focus on Market Value:** Instead of discussing past salary, focus on your skills, experience, and the market value of the role you’re applying for.
## When to Consider Including Salary History (And When to Avoid It)
Here’s a breakdown of scenarios where including salary history might be considered and where it’s best to avoid it:
**Consider Including Salary History If:**
* **Explicit Requirement:** The job posting specifically requests salary history and it’s legal to do so in that location. In this case, check the legality of the request. Some employers will continue to ask even in places where it is illegal to do so.
* **Strong Upward Trend:** Your salary has shown consistent and significant growth, demonstrating your increasing value.
* **Public Sector or Government Jobs:** Some government positions require detailed salary history as part of the application process.
* **Negotiating Power:** You are confident that your salary history will strengthen your negotiating position and that you were previously appropriately compensated.
**Avoid Including Salary History If:**
* **Salary History Ban:** The job is located in a jurisdiction with a salary history ban.
* **Stagnant or Declining Salary:** Your salary history reflects stagnation or a decline in earnings.
* **Underpaid in the Past:** You were previously underpaid compared to market rates.
* **Career Change:** You’re transitioning to a new industry or role where your past salary is not relevant.
* **Uncomfortable Disclosing:** You simply feel uncomfortable sharing your salary history.
## How to Include Salary History (If You Choose To)
If you’ve carefully considered the pros and cons and decided to include your salary history, here’s how to do it effectively:
**1. Choose the Right Format:**
There are several ways to present your salary history. Choose the format that best suits your resume and the specific job requirements.
* **Chronological Format:** Integrate your salary history within your work experience section. This is the most common and straightforward approach.
* **Separate Salary History Section:** Create a separate section dedicated to your salary history. This format is best if you want to highlight your salary progression.
* **Combined Format:** Use a combination of the chronological and separate section formats. For example, you might include your most recent salary in your work experience section and then provide a more detailed salary history in a separate section.
**2. Be Clear and Concise:**
Present your salary information in a clear and concise manner. Avoid ambiguity and ensure that your information is easy to understand.
* **Use Consistent Dates:** Use the same date format for your employment dates and salary history dates.
* **Specify Currency:** Clearly indicate the currency of your salary (e.g., USD, EUR, CAD).
* **Avoid Ranges:** Provide specific salary figures rather than ranges. If you received bonuses or commissions, you can include them separately, but be clear about how they were earned.
**3. Provide Context (Optional):**
In some cases, it might be helpful to provide context for your salary history. This can be particularly useful if you’ve experienced significant salary increases or if your salary history is unusual.
* **Explain Salary Increases:** Briefly explain any significant salary increases, such as promotions or performance-based raises.
* **Address Gaps in Employment:** If you have any gaps in employment, briefly explain the reason (e.g., family leave, further education).
* **Clarify Part-Time vs. Full-Time:** If you’ve worked part-time at any point, clearly indicate this and specify the number of hours worked per week.
**4. Example Formats:**
Here are a few examples of how to include salary history on your resume:
**Example 1: Chronological Format**
**Job Title:** Marketing Manager
**Company:** ABC Company
**Dates:** 2018 – Present
* Developed and implemented marketing strategies that increased sales by 20%.
* Managed a team of 5 marketing specialists.
* **Salary:** $85,000 (2018), $95,000 (2020), $110,000 (2022)
**Example 2: Separate Salary History Section**
**Salary History**
**ABC Company:** Marketing Manager (2018 – Present)
* $85,000 (2018), $95,000 (2020), $110,000 (2022)
**XYZ Corporation:** Marketing Specialist (2015 – 2018)
* $60,000 (2015), $65,000 (2017)
**Example 3: Combined Format**
**Job Title:** Marketing Manager
**Company:** ABC Company
**Dates:** 2018 – Present
* Developed and implemented marketing strategies that increased sales by 20%.
* Managed a team of 5 marketing specialists.
* **Salary:** $110,000 (2022)
**Salary History (Detailed)**
* **ABC Company:** $85,000 (2018), $95,000 (2020), $110,000 (2022)
* **XYZ Corporation:** Marketing Specialist (2015 – 2018) – $60,000 (2015), $65,000 (2017)
## Alternatives to Including Salary History
If you’re uncomfortable including your salary history, or if it’s prohibited by law, there are several alternative strategies you can use to address the salary conversation during the job application process.
**1. Focus on Salary Expectations:**
Instead of providing your past salary, focus on your salary expectations for the new role. Research the market value of the position and provide a realistic salary range.
* **Research Market Rates:** Use online resources such as Glassdoor, Salary.com, and Payscale to research the average salary for similar roles in your location.
* **Consider Your Experience and Skills:** Factor in your experience, skills, and qualifications when determining your salary expectations.
* **Provide a Range:** Instead of providing a specific number, provide a salary range to allow for negotiation.
* **Justify Your Expectations:** Be prepared to justify your salary expectations based on your skills, experience, and the market value of the role.
**Example:**
“Based on my research and experience, my salary expectations for this role are in the range of $90,000 to $100,000.”
**2. Defer the Salary Conversation:**
You can also choose to defer the salary conversation until later in the hiring process. This allows you to learn more about the role and the company before discussing compensation.
* **Express Interest in the Role:** Express your strong interest in the role and the company.
* **Focus on Learning More:** State that you’re interested in learning more about the responsibilities and expectations of the role before discussing salary.
* **Indicate Willingness to Discuss Later:** Indicate that you’re willing to discuss salary expectations at a later stage in the process.
**Example:**
“I’m very interested in this opportunity and would like to learn more about the responsibilities and expectations of the role. I’m happy to discuss salary expectations at a later stage in the process.”
**3. Highlight Your Value Proposition:**
Instead of focusing on your past salary, highlight your value proposition and the skills and experience you bring to the role.
* **Quantify Your Accomplishments:** Use data and metrics to quantify your accomplishments and demonstrate your impact.
* **Focus on Relevant Skills:** Emphasize the skills and experience that are most relevant to the role.
* **Highlight Your Contributions:** Explain how you can contribute to the company’s success.
**Example:**
“In my previous role, I increased sales by 20% and reduced marketing costs by 15%. I’m confident that I can bring the same level of success to this role.”
**4. Address the Request Directly (But Diplomatically):**
If an employer asks for your salary history despite a ban or your reluctance to provide it, you can address the request directly but diplomatically.
* **Acknowledge the Request:** Acknowledge that you understand the request.
* **Explain Your Position:** Explain why you’re not comfortable providing your salary history, citing legal restrictions or your preference to focus on your current market value.
* **Redirect the Conversation:** Redirect the conversation to your salary expectations or your value proposition.
**Example:**
“I understand your request for my salary history. However, I’m not comfortable providing that information at this time. I prefer to focus on my salary expectations for this role, which are in the range of $90,000 to $100,000. I’m confident that my skills and experience make me a strong candidate for this position.”
## Salary Negotiation Strategies
Navigating salary negotiations effectively is crucial to securing fair compensation. Here are some strategies to help you negotiate successfully:
**1. Know Your Worth:**
* **Research Market Rates:** Use online resources to research the average salary for similar roles in your location.
* **Consider Your Experience and Skills:** Factor in your experience, skills, and qualifications when determining your worth.
* **Calculate Your Expenses:** Consider your cost of living and other expenses when determining your minimum acceptable salary.
**2. Be Confident:**
* **Believe in Your Value:** Believe that you deserve to be compensated fairly for your skills and experience.
* **Project Confidence:** Speak clearly and confidently when discussing salary.
* **Don’t Undersell Yourself:** Don’t be afraid to ask for what you’re worth.
**3. Be Prepared to Negotiate:**
* **Have a Target Salary:** Have a target salary in mind, as well as a minimum acceptable salary.
* **Be Willing to Compromise:** Be willing to compromise on some aspects of the offer, such as benefits or vacation time.
* **Know Your Walk-Away Point:** Know your walk-away point and be prepared to decline the offer if it doesn’t meet your needs.
**4. Focus on the Total Compensation Package:**
* **Consider Benefits:** Consider the value of benefits such as health insurance, retirement plans, and paid time off.
* **Negotiate Other Perks:** Negotiate other perks such as flexible work arrangements, professional development opportunities, or signing bonuses.
* **Evaluate the Overall Value:** Evaluate the overall value of the compensation package, not just the base salary.
**5. Get It in Writing:**
* **Request a Written Offer:** Request a written offer that outlines all the terms of your compensation package.
* **Review the Offer Carefully:** Review the offer carefully to ensure that it meets your expectations.
* **Don’t Be Afraid to Ask Questions:** Don’t be afraid to ask questions about any aspect of the offer.
## The Future of Salary Transparency
The trend toward salary transparency is growing, with more and more companies disclosing salary ranges in their job postings. This shift is driven by a desire to promote pay equity, attract top talent, and build trust with employees.
**Benefits of Salary Transparency:**
* **Promotes Pay Equity:** Salary transparency helps to reduce pay gaps based on gender and race.
* **Attracts Top Talent:** Candidates are more likely to apply for jobs that disclose salary ranges.
* **Builds Trust:** Transparency builds trust between employers and employees.
* **Improves Employee Morale:** Employees are more likely to be satisfied with their compensation when they understand how it compares to market rates.
**Challenges of Salary Transparency:**
* **Internal Equity Issues:** Salary transparency can reveal pay disparities within the company, which can lead to dissatisfaction among employees.
* **Competitive Disadvantage:** Disclosing salary ranges can give competitors an advantage in attracting talent.
* **Administrative Burden:** Implementing salary transparency requires significant administrative effort.
**Preparing for the Future:**
* **Stay Informed:** Stay informed about the latest trends in salary transparency.
* **Develop Your Negotiation Skills:** Develop your negotiation skills to effectively advocate for fair compensation.
* **Know Your Worth:** Understand your market value and be prepared to justify your salary expectations.
## Conclusion
The decision of whether or not to include salary history on your resume is a personal one that depends on your individual circumstances and the specific job you’re applying for. It’s crucial to weigh the pros and cons carefully, understand the legal landscape, and consider alternative strategies for navigating the salary conversation. By focusing on your skills, experience, and value proposition, you can effectively advocate for fair compensation and secure the job you deserve. Ultimately, the best approach is to be informed, confident, and prepared to negotiate effectively.