Hiring managers have trouble making the connection between job requirements and salary once the candidate's salary history is brought into the picture. The thinking is often, "why should we be the source of this candidate's next increase?," without regard to all the other variables that exist in the candidate's employment history that they cannot control. You're there to help both the candidate and your client, so getting all your cards on the table simply allows you to work on you candidate's behalf most effectively.

posted August 20, 2008

The salary history can be an essential data to the employer. Employers may be using the date to determine which candidates they want to hire or which candidate is impressionably more retainable. This salary history could be used to determine if the company’s salary is commensurate to the candidate’s current salary and if future salary increases and promotions would be competitive. For example, if I had a position where I am considering two candidates, one candidate is a less experience individual earning a lower compensation and the other candidate is more experiences earning a higher compensation, then the information may help me make a better decision to hire a candidate that might have more chances of staying. If the positions allows for the candidate to grow with the company, then I would be able to retain the employee for a longer period of time if I hire them at a lower level of compensation. On the other hand I may be considering the more experience and highly compensated candidate but their current salary is out of my compensation range for the position. If I were this person’s recruiter I would confirm with both the employer and candidate that the salary range is with in the expectations of both parties.

posted August 20, 2008

Hi, Susan!

The salary offer is based primarily upon the following: what the candidate brings to the table, the salary range for the position and a review of the organization's internal equity.

IMO, asking a candidate for salary history is no big deal. It demonstrates a history of progression just as much as a resume and, in some ways, validates the resume.

It's understood that persons expect an increase in annual compensation when changing companies. The question becomes how much of an increase? That depends upon what the candidate brings to the table, the salary range for the position and how that translates to the company's internal equity. Most companies will not bring in an outside candidate above internal candidates with comparable experience.

The bottom line is that no candidate has to accept the offer given. I have worked for companies who request that a candidate bring in a copy of a current pay stub as a means of validating current salary.

posted August 20, 2008

I have a few thoughts on this on-going issue. First, I tell candidates that our salary offers are based on what market data tells us a person with skills X and experience Y should be making, or more correctly put, the range of salaries that are typical for such people based on several factors. I also explain that we make salary offers based on that market data and how the candidate stacks up against the levels of skill and experience within that range. Their current salary doesn't really enter into the equation.

However, I also always explain to candidates that having their salary history provides me with the evidence I'll need to advocate on their behalf. Part of my job as a recruiter, even someone working internally as I do, is to encourage the company to make an offer that the candidate will be happy to accept, not one they'd simply be willing to settle for. I'm not for handing them the keys to the treasury, of course, but I want them to be happy with what they're getting. Knowing their current compensation details helps me make a case for it.

Third, I always share with the candidate the salary range the hiring manager is targeting. For one thing, I dont't want to waste everyone's time if there was never any hope of coming to terms. If the candidate's comp is already too far over what the job pays, they probably won't be interested. There are always exceptions of course, but generally not. I share this information with the candidate first. I tell them I'm putting my cards on the table because I believe the best business realtionships are based on openness and candor. I then invite them to be equally candid with me, and I'd say 4 out of 5 times they give me exactly what their current compensation is.

Finally, if the candidate continues to balk or, as in the case you cited Susan, flatly refuses to provide it, I'll say something like this: "It's been my experience that people who refuse to disclose their current compensation do so because the think the company will use that to try and make as low an offer as they can get away with. Is that what you think is happening here?" If they say "yes" to that, then my next question is, "If you think we're the kind of company that would treat you that way, then why would you want to come work here?"

posted August 21, 2008

Well my view is that all salary offers it’s a negotiation and the employer side is trying to get the potential employer to give up information which allows the employer to negotiate the offer down.

And I am afraid some of the comments for the HR side are a bit naïve what people make in a job is often due to historical accident that any hard and fast one true rate for the job.

what would be interesting is the average companies response to the question “ can I see the salary range and progression for the role”

posted August 22, 2008

I believe that this information is requested because a potential employer uses it to assess the likelihood that the candidate is going to be happy in the position. Example: A candidate that was earning $100,000 finds herself unemployed. After three months, money problems start to get serious and she applies to a position paying $70,000. Will she stay, or will she take the job and keep looking for a position that pays $100,000+

My guess is that some employers think she will keep looking. Compensation must be commensurate with experience and consistent with what the candidate was making.

In my opinion, candidates accepting a cut in pay of more than 20 percent are more likely to keep looking... which is why I believe employers want salary history.

By the way, I think your candidate was wrong. She would have had to provide that information on an employment application.... why would she refuse to provide it to you?

posted August 22, 2008