Salary Factor

Possible Reasons Why Your Salary Isnt Higher

Forget about working hard for the money.  Sometimes some factors that influence salary are beyond our control.

Who wouldnt like to make a bit (or a boatload) more money each year?  Its not that we didnt try; we all worked hard, right?.  We endeavour to boost our performance – and it seemed to follow suit ie. our pay – with training programmes, and career coaches and workplace mentors, etc.  We even schedule weekly with our bosses to measure our progress and reassess benchmarks.

From the Human Resource Program Evaluation Handbook (by Jack E.Edwards, John Carlson Scott & Nambury S Raju)  which I read, it indicated that the most important determinants of an employee’s pay are the level and type of work performed, to which of course relevant paper scrolls are definitely requisite credentials.

Other factors include :-

  • Geographical location – high cost of living cities offer higher pay.
  • Compensation Philosophy – some organizations commit to the philosophy of paying higher than market demand simply to attract and retain the best pool of skilled and experienced employee (but sadly, nowadays chronyism takes charge and an unskilled relative maybe a disaster to an empire)
  • Profitability of a Company – those working for a highly profitable organizations usually have a greater chance of receiving higher salaries.
  • Gender Difference – often, it is difficult to determine if wage discrimination was intentional.  Women may earn less becoz of fewer years of sustained work experience, or lower level of education.  However, great strides have been made in assuring that “equal pay for equal work” are adhered to.
  • Employee Tenure & Performance – Traditionally, an employee’s pay increases with years of service.  Through experience, employees should become more effective problem solvers and more dependable.  Now, as the global economy demands for ongoing business change and higher levels of productivity, many organizations are looking at how to improve their employee’s pay and reward systems.

So, dont be alarmed or surprised to learn the occurance of salary difference for individuals holding the same position and tasks.

Another interesting article I captioned stated that married men tend to make more than men who have never been married.  For one thing, employers may have a bias in favour of married men because maybe they felt that marital status signifies a man’s stability or responsibility.  Putting aside of course, the womanisers or alcoholics.

Another research suggested that the most potential control over pay has to do with the total number of hours logged.  Of course there is plenty to explain this, such as illness, old age and disability.


2 Responses

  1. The cartoon correctly depicts the reality, that an employee may need to ask for more if he/she knows that he/she performs well as compared to peers.

    Just adding on a bit, salaries paid to employees could be due to supply and demand for specific skills. From the employer’s perspectives, merit increment should be given to performing employees to retain talents, and not to take advantage of good performers by counter offering better compensation when a resignation letter is received.

    I personally do not think that being married has a pay advantage, though in fact, I had a disadvange during my early career when there as such an allowance called marriage allowance. So being single at that time, I did get less than my married colleague who joined the same time as me. But that type of allowance was abolished later with the allowance amount added to those singles.

  2. Way to go TG!!! You know the topics better than I do ….. so are you joining me at the launching of my Club next month?

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