Salary indicates how much you are paid but also shows how much your job is worth in the job market. Your salary is usually based on a number of different factors. In this article, we will dig deeper into the factors that affect your salary.
Your salary is defined on your employment contract when you start working. In some fields, salary is largely based on the collective bargaining agreement for that field, which makes determining the salary easier.
Collective bargaining agreements for different industries usually include minimum wages as part of the terms for setting salaries. The internet makes it easy to find information about the normal salaries on your line of work.
Nevertheless, only some businesses use collective bargaining agreements. Remember that the law says you should get at least a fair wage for your work, which is about the same as what you would make in similar jobs.
How Hard the Job Is and Your Skills Affect Your Salary
Minimum salary doesn't mean that you couldn't earn more. For instance, in expert industries, the collective agreement salary is the bare minimum, and it is often negotiated to be higher.
Before you start your new job, you may be asked about your salary expectations. By answering this question, you can affect the amount of your salary right from the start. Employers decide how much to pay you by looking at how difficult the work is, how much education you have, and how much experience and knowledge you have. These things affect how much money you make.
Companies usually set their internal pay scales to make sure that salaries with similar requirements and complexities are comparable.
Job market situation and industry affect salaries
Even though companies work hard to make sure pay equity is right, there may still be differences in how much different companies pay for the same work. In this case, it doesn't necessarily mean that you would be more productive at another job.
The business that the company is in often has an effect on this. When a business is in a competitive field with narrow margins, staff salaries are a bigger factor in how well it can compete.
What's going on in the job market, or the demand and supply of workers, also affects pay, at least while people are looking for work. Pay can also depend on how well the company is doing financially and on whether you work for a big or small company, especially if you work in a specialized field. For the same work, the pay may be less in a small town than in a big city.
Extra pay adds to the base salary
Even though collective bargaining agreements set the general wage level in certain industries, as an employee, you may get extra money on top of your base salary. For example, you usually get more money for working late, on the weekend, or on a public holiday. Supplements are often specific to the industry and are based on the employment contract or how the company normally does things.
You might also get extra help based on how knowledgeable you are or how many years of experience you have. Employee experience year supplements are based on collective agreements and say that your pay will go up automatically after a certain amount of time working for the company.
Depending on the business you work for and the type of work you do, your salary may include commissions or bonuses. In this case, your pay might change from one pay period to the next.
You can ask for a pay raise
Taking the initiative can help with getting a larger salary. You can ask for and justify a pay raise by proving that you've learned new skills or done a good job with your current duties.
But remember that salary talks are not always the same. In fields where pay is based on collective agreements, it might not be possible to negotiate as much as in specialized roles where pay is based on a number of factors.
When the economy is unstable, businesses look at all of their costs and expenses very carefully. It means that talks about pay can end quickly, even if your work is appreciated and you've done a good job.
So, it's important to find other ways to stay motivated, like enjoying your job, liking the way the company works, and having great coworkers.