Write a Compensation History

Employers sometimes request compensation histories along with a job resume or as part of the interview process for a new position. Because this information is often considered confidential, you may have trouble crafting a compensation history because you do not know what to include and in what form. Just remember that compensation is different from salary, in that it includes all the monetary benefits you receive from a company.

Steps

Creating a Separate Compensation Page

  1. Match it to your resume. If you've already have a resume set up, just match your compensation page to the same style. You can even just save your resume as a new document (Compensation history), then start working from that document.[1]
    • To save your resume as a new document, click "Save As" under the file menu.
    • When the save document screen comes up, give the document a new name, so it will be a separate document from the original.
  2. Leave your contact information. You need the same header at the top that your resume has. That means you include your name and your contact information in the same format as your resume. Also, add a title in the same format, such as "Compensation History."[2]
  3. Erase most of your resume information, leaving your work history. Now, take out the majority of your resume information. The exception is your work history. You need to leave that to work from, so you won't need to recreate it for your compensation history. There's no sense in doing work you've already done. Just like your resume, your most recent job should be first.[3]
    • Don't forget to take out the job description. You really just need the basics for your compensation page, as you've already included that information on your resume.
    • If you prefer, you can include an accomplishment or two, so that the interviewer knows why you've received that compensation.
  4. Decide how you want to include your compensation. You have two choices for including compensation. You can either include both your starting and final compensation at a company, or you can include a range. The range can give you more wiggle room when it comes to negotiating, but some companies may demand an exact number. You should be able to tell from the request which your interviewer prefers, but if you can't, it's fine to ask which they prefer.[4]
    • With a range, it's fine to add in a little wiggle room. For instance, if your compensation was $40,000, you could say your compensation range was "$37,000 – $43,000."
    • Your best option for a range is to include the max and minimum of what you were paid, rounded to the nearest $1,000, as employers can check up on your past salaries.
  5. Add in your compensation. For each job, add in a line for compensation. You can label it "Compensation" to clear up any confusion. Place your compensation next to the label, then move on to the next job to add in the compensation.[5]
    • Don't forget to add a label. Make it clear whether the compensation was per year or per hour.[6]
  6. Include the compensation with your resume. Your cover letter should always be the first page, followed by your resume. If you're including a compensation history, it can come after your resume as the third page you include.[7]
  7. Qualify your compensation. That is, you can add a note about why you are willing to take a lower salary or why you think you deserve a higher one at the bottom of your compensation page. That way, your employer can better understand what salary you're looking for and why.[8]
    • For instance, you could say you took less in the past because you didn't have the experience. Now that you have the experience, you expect to be paid more. You could write, "The salary I am currently asking for is proportionate to my experience." Or, "My compensation is at the low end of the industry standard for this position, which is one reason I am seeking employment at this time."
    • On the other hand, you may be willing to take a cut because the economy is bad. You could write, "I have been paid higher in the past, but I am willing to take a salary that is below what I was previously paid due to the downturn in the economy."
  8. Avoid writing one. Another option is to avoid writing one all together. While some employers may request one, most will still look at you for the job if you skip it; however, you should address it in some way, such as saying you would love to discuss a salary range once you established that you are both interested in each other.[9]

Figuring Out Your Total Compensation

  1. Start with your salary. Your salary is simply what you're paid, whether you are a salaried employee or paid by the hour. Your compensation, on the other hand, is what you're paid in total, including other benefits such as health insurance, as that is part of your benefit package.[10] Don't forget that tips are a part of your salary, and they should be included in compensation.[11]
    • Don't forget to include any paid time off, or PTO. The trend now is for employers to lump all of your time off for the year together, and let you decide how and when to use it. This will include all vacation, personal and sick days, and is a negotiating point when it comes to making and accepting job offers.
  2. Add in your health insurance. If your employer contributes to your health insurance, you need to figure out what part your employer paid. Take the amount your employer paid for the year, and add it to your original salary. Your health insurance, salary, and PTO make up the main part of your compensation package, though you may have additional items.[12]
    • Don't forget to include any dental or vision insurance your employer pays for in this part of your compensation.
  3. Calculate your retirement matching. Another benefit some employees offer is retirement matching. That is, for every amount you take out of your check to go to your retirement, the employer puts in a certain amount. Some employers match dollar-for-dollar, while others only match a certain percentage.[13]
    • Check to see how much your employer contributed per year on your behalf. It's fine to do an average per year if you and your employer contributed different amounts each year.
    • Add the final number into your compensation number.
  4. Add in bonuses and stocks. Employers also compensate employees with bonuses and stock. These perks can be easier to forget, since they aren't as regular as your salary. If your employer provides these benefits, figure out what you received per year. Add that into your compensation for that company.[14]
  5. Include discounts and perks. Another part of compensation is what perks you get from your company. For example, if you get discounts at certain places, those perks add up. Maybe your employer pays part of a gym membership or provides meals for free. Add up what you can from these perks, then add it to make your grand total for your compensation package.[15]
  6. List them together or separately. You can add up all the figures and list your compensation as one number. However, listing them separately is far more helpful to a prospective employer. Employers can often offer different combinations of benefits and perks to suit a person's individual needs, and seeing the details of your compensation from previous positions will be helpful.[16]
    • For instance, you could put your compensation as a dollar amount, and below that you could include the major perks you received, such as retirement matching, paid travel expenses, and free meals while at work.

Tips

  • The main reason employers solicit compensation histories is to ascertain whether an applicant's salary expectations are commensurate with what the employer is willing to offer.

Warnings

  • Always be honest and exact about your salary history and compensation details. Employers are often able to double-check your claims using third-party sources, so untruthful statements or attempts to hide facts will only hurt you in the application process.

References

  1. ↑ http://www.monster.com/career-advice/article/create-a-salary-history
  2. ↑ http://www.monster.com/career-advice/article/create-a-salary-history
  3. ↑ http://www.monster.com/career-advice/article/create-a-salary-history
  4. ↑ https://www.livecareer.com/quintessential/salary-history-samples
  5. ↑ https://www.livecareer.com/quintessential/salary-history-samples
  6. ↑ http://www.monster.com/career-advice/article/create-a-salary-history
  7. ↑ http://www.monster.com/career-advice/article/create-a-salary-history
  8. ↑ http://money.usnews.com/money/blogs/outside-voices-careers/2014/01/15/dont-make-these-8-mistakes-when-negotiating-salary
  9. ↑ http://www.monster.com/career-advice/article/create-a-salary-history
  10. ↑ http://www.workcoachcafe.com/2015/04/14/what-is-your-total-compensation/
  11. ↑ http://www.monster.com/career-advice/article/create-a-salary-history
  12. ↑ https://www.wisconsin.edu/ohrwd/benefits/totalcomp/
  13. ↑ http://freefrombroke.com/how-much-is-your-total-compensation/
  14. ↑ http://www.monster.com/career-advice/article/create-a-salary-history
  15. ↑ http://freefrombroke.com/how-much-is-your-total-compensation/
  16. ↑ http://www.1st-writer.com/Salary.htm
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