When and How to Disclose Your Salary Requirements
Some job postings ask you to include your salary requirements, or even your salary history, when applying for the position. Companies request salary information for various reasons. If your salary requirement (or salary history) is too high, employers can screen you out because they don't want to pay that much, or because they think you won't be happy working for less money.
On the other hand, if your salary requirement (or your salary history) is lower than the company is willing to pay, they may offer you a lower salary.
To avoid being screened out, and to avoid being offered a low salary, you need to be careful how you describe your salary information.
Read below for tips on how to provide this information without hurting your chances of getting a job, while still receiving a fair salary.
What Are Salary Requirements?
A salary requirement is the amount of compensation a person needs to accept a position. Some employers ask job candidates to give a salary requirement when they apply for a job.
Salary requirements are based on several factors such as:
Prior salary history
Previous work experience
Cost of living
Occasionally, an employer might ask you to include your salary history instead of (or along with) your salary requirements. A salary history is a document that lists your past earnings. The document typically includes the name of each company you worked for, your job title, salary, and benefits package.
Is it Legal for an Employer to Ask for Your Salary Requirements?
Employers can legally ask you to state your salary requirements. However, some states and cities restrict employers from requesting information about your past salary. Check with the state department of labor in your jurisdiction for the latest information on this issue, and the laws that apply in your city and state.
Salary Requirements: Include or Leave Out?
If the job listing doesn't mention it, don't offer any salary information at all. Ideally, you want the prospective employer to bring up the topic of compensation first.
If you are asked to include salary requirements with your application, you could ignore the request, but that means you risk not getting an interview. There is nothing employers like less than when candidates do not follow directions.
It is best to follow instructions. However, there are a few ways you can provide the required information while limiting your risk of being screened out or offered a low salary.
Tips for Including Salary Requirements
When asked to include salary requirements, you can include a salary range rather than a specific amount. This range should be based on the salary research you've done. For example, you can state in your cover letter, “My salary requirement is in the $35,000 - $45,000 range.” This kind of answer gives you some flexibility, and prevents you from locking yourself into a low salary (or being screened out for having too high of a salary).
When stating a salary range, make sure that the range is realistic. Do this by carefully researching what the position is worth:
Use salary surveys to determine the average salary for the position you are interviewing for, or for a similar position if you can't find information on the exact job title.
Use salary calculators to factor in cost-of-living expenses and to estimate what you should be paid in a particular location. There are a variety of salary surveys and calculators, including industry-specific and geographic resources, available online.
Another option is to state that your salary requirements are negotiable based on the position and the overall compensation package, including benefits.
Either way, note that your salary requirements are flexible. That may help keep you in the running for the position and will give you some flexibility when negotiating compensation later on if you get a job offer.
Tips for Including Salary History
If you are asked to include your salary history, you can also list your previous salaries as ranges rather than specific amounts.
But again, always follow any specific instructions about how to include salary history.
If the employer gives specific instructions on how to include salary requirements, follow those rules. For example, if he or she says to give a specific dollar amount (rather than a range), do so.
Again, you want to follow all directions on the job listing. No matter how you include your salary history, always be honest. It's easy for potential employers to check your salary with previous employers. Any false information will get you screened out of the application process.
Where and How to Include Salary Information
Salary requirements can be included in your cover letter with sentences such as "My salary requirement is negotiable based upon the job responsibilities and the total compensation package," or "My salary requirement is in the $25,000 - $35,000+ range."
Keep your reference to salary requirements brief, so the employer can focus on the rest of your cover letter.
If the employer asks you to include your salary requirement in a different way (for example, in your resume), be sure to do so.
There are a few ways you can include your salary history. First, you can include the history in your cover letter, briefly stating what you earn now. For example, you might say, “I currently earn in the mid-forties.” You can also include an itemized list of your previous salaries (or salary ranges), either in your resume or on a separate salary history page that you enclose with your resume and cover letter.
More About Salary: Salary Negotiation Strategies | How to Answer Interview Questions About Your Salary Expectations | Providing Salary History
When applying for a job you may be required to include salary requirements in your resume cover letter.
First of all, it is recommended to avoid indicating the salary expectations in cover letters unless you’ve been explicitly asked to provide them. This is because you will not have an idea about the job description and salary ranges until you receive the job offer and/or the interviewer raises this issue. This would lead to a premature and ineffective decision at the preliminary stages.
Therefore, remember to include your salary requirements (i.e. salary expectations) only when you have been asked for this piece of information.
So how would you go about this?
This article deals with the elements that comprise the salary range for a job opening. The article also discusses the way one should include the salary requirements in his/her cover letter and provide a sample letter for the same.
How to write salary requirements in a cover letter
The dilemma starts with the fact that most (if not all) job hiring ads do not contain the employer salary limits.
The employer’s position:
Employers require this info to have an understanding of your salary expectations to obtain their first selection criteria. In fact, it appears that you may find yourself in 3 no-win situations:
1. If they find that you are looking for a higher salary, they will not waste any further time, since they will not be able to pay you that amount.
2. They might have the idea that you will not be happy working for a lower salary.
3. On the other hand, if your current expectations are lower, you might land yourself a lower salary package.
That is why your salary requirements in the cover letter have to demonstrate your desire to keep the door open.
1. You can state that your salary package is negotiable based on the overall compensation offered, including benefits.
2. You may provide a base salary (from-to) after researching the current market, like $50,000 – $75,000 – with the lower number representing your original salary expectation.
Both these options put you in a good position since they offer you flexibility during the salary negotiation stage.
Salary expectations and salary requirements cover letter
Before writing the cover letter that includes your salary requirement, you have to research the average salaries of the position based on several variants. Make sure you take a good look at the following factors:
Salary survey and salary range
You need to spend time reading the current industry reviews (salary surveys) and the salary ranges for people having a similar career status to the one you are applying for.
The company field
It is also necessary to look into the field of the hiring company as their salaries mostly depend on the industry they are engaged in.
Cost of living also forms an important part of determining your salary since it differs from location to location. For example – a financial advisor in New York is paid higher than one from Arizona as these two places have a cost of living gap. Hence job location needs to be kept in mind during your research.
Supply vs. Demand This is one of the most important factors for determining salary range. If the industry is saturated with a lot of people with the same qualifications and skill set, employers gain the upper hand resulting in a lower salary being offered than would have been the case were people in short supply for the required position.
On the other hand, if the demand and the supply are high, as in the case of s/w programmers, the company would want to grab these employees from the market and therefore offers a high salary package in order to be the first company to hire these professionals.
Compensations including benefits
Some professions (like marketing and sales) are based on benefits. You need to find out not only the salary range but also the total compensation structure that comprises all benefits for a given position – this is called the total Cost to Company or simply CTC.
Comparing apples to apples
Some professions require more competencies than others. The hiring company is going to consider your overall skills, experience and qualification as their pay factors. Therefore, these points should be highlighted in your cover letter or your resume.
Sample cover letter with salary requirements
Refer also to the article – Resume Cover Letter Samples
As regards your request, I have researched the market based on the job description and have come up with a salary range of $50,000 – $70,000 without any benefits or supplements added to the scale.
This is negotiable depending on the total compensation, career growth opportunities and other factors.
Thank you for your time and consideration.
As for the salary requirements, my expectations are as follows – $X.
However, I trust you will consider this figure following a job interview as I am flexible to negotiate all aspects of the job offer.
Ads By Google