Employees may be surprised to learn that their job performance is not the only deciding factor in determining their salary. In fact, the job performance is not even the main deciding factor of your monthly pay. Here are six factors that decide the sum of your pay check.
It is argued that while merit is an overall important factor in deciding an employee salary, the first and the most important condition may actually be the job market. Slow economic times may reduce the pay and salaries for hourly workers and full time employees. Therefore, an employee is more likely to accept a lower pay when the job market is tight.
The second factor determining your salary may be the job location. If the job location is situation in an area where the cost of living is high, the salary is expected be higher than in areas where the cost of living is lower. However, this aspect may change over time as many jobs move online and millions of people around the world can work from home.
Next comes your years of service and the time you have spent with the company. Historically speaking, the longer you have worked for the company the higher you salary. However, these days as the business demands quickly change, this may change too, and older employees have the right to go to their employer and ask for at least par in payment if the junior employee's pay is higher than his or her's for the same job.
The size of the company in which the employee works also matters in determining the salaries. It is said that bigger organizations and companies are able or inclined to offer higher salaries than the smaller companies. Perhaps this is why they are called larger organizations due to their bigger market share and financial capacity.
Then, of course, comes the employee's educational level. Normally the better educated the employee is, the higher the salary and advancement prospects. While the experience matters too, it always helps to advance an employee education and secure career enhancements and future job prospects. It is for this reason that many companies invest in the continuing education of their employees.
Last, but not the least comes the job performance. This factor is less likely to be a deciding condition when someone is just being hired because the employer does not know the performance of the new employee in the new company. Job performance, in determining worker's pay may glowingly become a deciding factor as the employee spends longer time with the company. However, if the above-mentioned factors, such as economic conditions and job location change, they may take over on the job performance factor as a determining condition of an employee pay.
Written by Armen Hareyan
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