Why Do Companies Insist on Having a Potential New Hire’s Salary History?

 Why Do Companies Insist on Having a Potential New Hire’s Salary History?


How do hiring companies justify needing a candidate’s salary history? Especially in light of the fact that positions with similar titles at different companies often have substantially different performance objectives.

How could your job reviews Singapore   salary history be considered relevant to the market value of your ability to do the job for which you’re applying? Or for that matter how could it be relevant to the worth a hiring company places on having the job performed well?

I know Human Resource professionals who speak of requiring salary information as if it is their given right as a potential employer to have it. I beg to differ. How much money you make is private. It’s none of their HR business! The only pay rates a company has a natural right to know are those which it pays.

A recent search for companies requiring salary history on Monster.com returned 2,579 active U.S. job listings system wide out of presumably tens of thousands of postings. A similar search at Careerbuilder.com returned 1,832 listings. (Some of these postings gave an option of sending salary requirements instead.)

While this may seem to be a small percentage of jobs overall it doesn’t cover the number of companies that don’t ask up front but require proof of current (or last) pay rate in the form of a check stub before they will make an offer.

Suffice it to say that enough companies require current or most recent salary information that the query of how to handle it comes up regularly. Every time it does I ponder the question of why these companies do it.

Human Resources professionals will justify the practice of requiring salary histories by mentioning benchmarking, wanting to see a history of progression, the need to stay within defined salary ranges and/or as an effort to save time. Some will go so far as to admit that it is how they know how to structure an offer of employment.

Let’s look at these reasons one at a time. In my mind benchmarki



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