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.