Did you know that your salary can vary dramatically from one company to the next, even when doing the same job? Also that you you can find yourself earning a dramatically different salary depending on whether you are working for a large or small company? Or that current market conditions can dramatically affect your remuneration? Also that there are those companies that offer a fixed salary, take it or leave it, and that there is no room for negotiation when hiring? And that there are those that will have job grading’s where there are very small margins when it comes to salary negotiations, while other companies have far bigger margins for negotiations?
There are a number of factors that affect what a specific employee will pay, including the following:
The better skilled you are, the more you can expect to earn and the more you can demand. This is especially true if you have sought after skills that are in demand. Those who have skills that are in demand have a tremendous amount of bargaining power when it comes to their remuneration.
Years of Experience
Generally the more years’ experience you have the more you can expect to get paid. Experience does count. Should you apply for a job that requires 15 years work experience and you only have 8, the chances are that you are not going to be offered the salary advertised for that particular role, and may find yourself on the lower end of the pay scale.
Current Market Conditions
When times are tough and companies are cash strapped, your remuneration can be adversely affected, and you may find that the company is just not in a position to be able to pay you as much as you would like them to, even if they want to. For this reason the state of the economy can dramatically affect your remuneration.
Responsibility, Position and Title
The more responsibility you have in your role, especially when it comes to managing employees, the more you can expect to earn. One does need to keep in mind that your level of success is also going to be based to a certain degree on the success and performance of those who work under you, and how you are managing them. However a higher rate of responsibility will normally go hand in hand with a higher compensation.
How much you earn can be influenced quite dramatically by a number of factors including the size of the company that you are working for. The size of the company, and how much its revenue is, can directly affect your salary. It seems the trend is that bigger is better, and that bigger companies generally pay better. Your benefits are often also better at bigger companies.
The educational requirements of a specific job are very important. If you are not a match so far as the required educational requirement goes, there is a good chance that this will negatively affect your remuneration. The quality of your education will also affect your remuneration, having a degree for example will probably dicate a higher remuneration,than a diploma. Where in the world you qualified will also affect your remuneration, with higher salaries being paid to those with qualifications from reputable first world institutions.
Hazardous work environment
In some jobs, particularly when it comes to mining, workers are expected to perform tasks under dangerous working conditions. Jobs that fall into this category are often better paid than those that are not dangerous. For example a laborer working in mining, may earn a lot more money than a laborer working in agriculture.
Private, public or government company
How much you will be paid can also vary tremendously as to whether you work for a private, public or government company. In some regions it can be that both public and government sector workers are supposedly more skilled, work shorter hours and earn more money than those in in private companies. However there are reports that if you have a degree you can earn more in the private sector. Generally though it appears that those working in public and government sectors make more in salary and benefits combined than those in the private sector.
Some industries are notoriously better paying than others. The mining and gas industries are two industries that generally pay very well. However a lot depends also on the economy and how the industry is performing, when for example the mining industry is not doing so well, then your remuneration can be very negatively affected.
The effectiveness and impact of unions on the negotiated wage can affect your remuneration dramatically. Unionized labor often increases the wages companies pay across the board to their employees. This is not always a good thing as star performing employees may be capped as to how much they can earn, and under performing employees are then paid more than what they may deserve to be paid.