verify employment

Many businesses know salary ranges and pay bands for specific positions and plan accordingly. However, some do not. Unless you run a large business, it’s likely to be minor, and this means that hiring someone without a salary history will negatively affect your costs. Here are some benefits to asking a prospective employee for their salary history:

●    Indicates Growth in the Profession

The candidate’s performance, growth, and career trajectory are reflected in their compensation progression. And, because continuous performance improvement is a crucial selection and hiring criterion, a candidate who can demonstrate consistent compensation growth will be considered a top candidate.

●    Proof of Employment

It allows you to determine if an applicant is honest with you about their employment history and past salary. A salary history can be used to verify employment of potential and current employees. If you have a large number of applicants, a shortlist of their previous salaries will give you an indication of their honesty and work ethic.

●    Illustrates a Candidate’s Qualification Level

Asking for a candidate’s salary history can help you prevent hiring underqualified employees. Employers were unsure whether it was legal to request such information in the past.

Data from a salary history document can help you determine if a job applicant is worth paying. It also can help you determine whether a candidate is overqualified or underqualified based on their past salaries.

●    Gives you Insight on the Ideal Salary

According to the Equal Employment Opportunity Commission, every employer must ensure that employees receive their just wages. When you are hiring, salary history can help you decide on the correct salary.

As a result, you can avoid the problems of employment salary discrimination. The same principle applies to salary history. It may help narrow the pay gap when evaluating candidates.

●    Shows an Interviewee’s Negotiating Skills

Regardless of their position, good negotiators are extremely useful to a company. The most assertive negotiators, according to firms, will be able to keep their current and future salary aspirations hidden until the end of the hiring process.

As a result, the question shows whether a candidate is highly desirable since they managed to keep this decisive negotiating issue hidden until the very end of the recruiting process.

●    Helps You Evaluate What Your Business Can Afford to Pay

By providing your potential employee’s past pay history, you will determine whether you can afford them. It is also helpful to have a general idea of how much they earn since this will help you make the most educated decision about their abilities and skills.

It gives you a better idea of how many potential hires are worth, and it can save you from hiring someone who may not be worth as much as you think.

It tells whether a candidate is worth considering or too pricey if provided promptly.

A wage history or present compensation aspirations could lead to early rejection from the candidate’s standpoint.

However, on the other side, an applicant will not have to wait months to learn that they had no chance from the start. Additionally, some applicants may desire the opportunity to accept a pay cut.

However, from the firm’s standpoint, that may be an unwise risk to take when there are so many other competent candidates who do not have severe pay difficulties.

●    Saves on Time and Resources

A salary history can help you hire more people faster. For example, when a potential applicant is applying for a new job, knowing their previous salaries can help you make the best decision for the position.

It also helps you identify candidates who might be overqualified or underqualified for the position, and you can focus your recruiting efforts on those who are suitable for the job. If you’re a small business owner, having salary history information can help you save hiring costs.


A salary history can help employers determine if a prospective employee is worth hiring. Why asking about a past salary is not illegal is because it provides insight into the applicant’s salary expectations. This information can also help the employer determine if the applicant is eligible for the job. Hiring someone with a good compensation history is in your best interest if you have an open position.

By Anurag Rathod

Anurag Rathod is an Editor of, who is passionate for app-based startup solutions and on-demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.