Friday, August 19, 2011

Salary requirements: should you disclose it in your resume or cover letter?

When it comes to salary requirements, if a job ad doesn't specifically mention it, then DON’T offer it. Most ads don’t ask for salary requirements, but when they do, there are reasons for doing so. The most prominent is to weed out candidates who are out of the desired range. If your salary requirement is too high, you will most likely be screened out because the company assumes you will not be happy working for less than you desire. On the other end of the spectrum, if you state a salary that is lower than they intend to pay, then you may be shooting yourself in the foot assuming that you make it through the interview process. Either way, it is important to do your homework before you rule yourself out.

The first rule of thumb when asked to provide salary information: DON’T lie about compensation from past positions. It’s very easy to verify with just a phone call, and if you burn this bridge of trust, you can pretty much kiss any chance you had goodbye. Be honest and provide truthful information. Sure, it may be tempting to overstate your salaries because you are aiming for a higher paying job, but eventually it will catch up to you.

So how do you answer the salary requirement question, and not be discarded? Do some research and see if you can figure out what range the salary they will offer would fall in. For your part, state a salary range instead of a specific amount. You probably don’t want a range of $30,000, so staying within $5,000 to $10,000 is reasonable. And make sure your range is realistic. I remember quite well the interview I conducted a few years back for a VP of Human Resources. The majority of candidates I brought in to interview were at the level of compensation the client was willing to offer. This was because of the scope of responsibilities, size of the company, and number of direct reports. In this particular case the salary was right around $130,000. One of the last candidates to come in had passed the screening because she had not been forthright about her salary history. I did my homework, and knew she was currently making $65,000. And her salary was right in line for the scope of responsibilities she had. I was curious when I asked her about her salary requirements to see what she would say. She didn’t hesitate to respond $130,000. I nicely explained that I had researched her current position and knew she was only making half of that amount currently. After an awkward silence, the interview abruptly ended.

The point is, her expectations compared to her skills were completely unrealistic. If you are not within the range they want to pay, either high or low, it’s probably not worth the time to apply. I have seen companies that ask for salary requirements and then state a range of compensation based on experience. The ranges can fluctuate substantially, for example $70,000 to $100,000 depending on skills and background. The reason they do this is because they have not completely decided what exactly they want the position to entail. By evaluating a pool of applicants, they may be able to hone in on candidates that possess qualities they feel would best fit the company. Sometimes that means they figure out candidates in the $70,000 to $75,000 range will suffice; other times the $90,000 to $100,000 applicants appear to be the best fit. Don’t automatically assume that you fall at the top end of the range. More often than not I see the applicants who believe they are at the high end are in reality the ones who are actually at the lower end. They eliminate themselves quickly.

So how do you present salary requirements when requested? Unless asked specifically to state your requirements on the cover letter, you will want to create a separate “Salary Requirements” addendum that lists your salary history and clearly states your desired salary. This can be submitted with the resume and cover letter when you apply. Some additional tips in this regard include:

• Stating that you expect competitive or fair compensation based on the position, particularly if you feel you are underpaid now
• Expressing your salary flexibility
• Stating that you would prefer to discuss salary in an interview, but also make sure to reinforce the fact that you do not believe the range offered will be an issue
• Stating that your salary requirements are negotiable based upon the position and the overall total compensation package, including benefits and perks - this includes bonuses, amounts paid by the employer toward medical premiums, 401k matching, stock grants or stock options, and paid time off. Evaluate the package as a whole

The last bit of advice is whenever possible, let the employer bring up compensation. In an interview setting, this will work wonders. I will talk more to this in another post, but to negotiate the best possible salary for yourself, let your skills, background and qualities do the talking; if you do your chances for a higher offer go up significantly. There is a psyche about the perception of actually being interested in the job versus only being interested in what it pays.

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