Why List Salary

Salary information is critical in a resume. You may have read books or articles that advocate leaving current salary off the resume for purposes of negotiating the highest possible offer.

Such advice is ill-founded. Few companies will put you on an airplane for an interview without knowing your present salary. As a rule, when an applicant refuses to divulge his or her salary, all discussions terminate.

Most employers have a formalized wage and salary administration system. In such a system, each job is rated and a salary range established. A company typically attempts to hire in the middle of this range in order to provide room for future merit increases.

If a company has an open position with a salary range of $50,000 - $60,000 a year, they will aim to fill this position at $55,000, which is the midpoint. If the company goes through the expense of bringing someone in from out of town for an interview without knowing their present salary, it can be embarrassing and frustrating if an offer of $55,000 is turned down because the candidate is currently making $62,000.

You should state current base salary exclusive of benefits. Any extras, such as stock options or cash profit-sharing bonuses, should be shown separately. If you have a merit increase promised, it is a good idea to include a note, such as "expecting 7% raise in August." Whatever you do, never misstate your salary. Individuals have been known to exaggerate their current salary in hopes of getting a higher offer.

Companies do, however, frequently ask for salary verification after an offer is accepted, but before the actual start date.

Where to List Salary

Many candidates wish to leave their salary off the resume and put it in a cover letter instead. This is fine, especially if you feel that your current salary requires
an explanation.

Salaries that are unusually high or low should be addressed. An abnormally high salary may raise questions as to the applicant's honesty, while a lower-than-normal salary raises questions as to the individual's quality.

Here is a sample cover letter explanation for a low figure, "I know that my salary is unusually low for my education and experience. My current employer has been losing money, resulting in austerity programs and salary freezes. I don't expect to catch up in one giant leap, but I do want to work for a company with a better compensation program."

And for the high-salaried individual, "I know that my salary is on the high side. My employer gave me a 20% increase when I was transferred to Sydney three years ago. I've also been rated in the top 10% in every performance review I've ever received."

Contractor's salaries will tend to be very high as well, because of the short term work and lack of benefits. You would need to explain your compensation and indicate your flexibility for a permanent position.

Salary Increases

Minimum expected salaries should only be included with your resume if you require a big salary increase to change jobs. You should note, however, that increases of more than 10% are uncommon; 15% is very unusual; 20% is extremely rare; and 25% isn't a possibility except under very unusual conditions.

Conversely, if you were moving from Sydney to Melbourne, you should probably expect a salary decrease, due to the lower cost of living. If you are going for big numbers, it's a waste of everyone's time, including yours, not to let the employer know up front.

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