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Research how to prepare for an interview - Essay Example

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The employment contract specifies the frequency and amount (Bebchuk, 2005). This paper will discuss how employers determine appropriate salaries, and…
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Research how to prepare for an interview
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How to Prepare for an Interview How to Prepare for an Interview A salary is an agreed and fixed form of payment received periodically by an employee from an employer in exchange for work. The employment contract specifies the frequency and amount (Bebchuk, 2005). This paper will discuss how employers determine appropriate salaries, and whether it is proper for employees in the same position to earn different salaries and also discuss what they earn with their co-workers. It will further look at the appropriate time to ask for a pay rise.
The minimum wage low dictates the lowest salary payable to an employee. However, on the upper limit, an employer is at liberty to pay as much as he wants and can so long as he remains in business. Several factors used to reach a salary level include the supply and demand of labor, education level and experience of employees, competition, geographic location and the organization offering the job (Krugman, 2007).
When certain job markets demand a high supply of labor, but there is a shortage of enough qualified individuals to take them up, employers will offer the few available higher salary tags in a bid to attract and retain them. Those who possess the necessary knowledge, skills and experience, stand to receive a higher salary offer (Krugman, 2007).
Another factor determining salary is the geographic location of the employees’ posting. For example, an organization may be having branches in various states, and a new employee is to be posted to a state different than the one the interview occurred. Such an employee will receive a higher salary to compensate his moving away from his home state (Krugman, 2007). Furthermore, geographically different regions have different living costs; thus different regions will offer different salaries for the same job and experience (Krugman, 2007). There are some states whose minimum wages exceed the federal minimum rate, and in those states, the employer pays whichever is higher.
Employers also base their salary rates on what their competitors are paying. After running searches and getting an idea of what the competition pay, most employers will offer higher salaries in order to outbid them in acquiring the best skilled employees available. In cases where the government is the employer, government guidelines determine salaries. For example, the price of the bid or tender placed on the project for which the employee, or subcontractor, is being hired will play a part in determining their pay.
Factors that cause salaries to differ within the same position include the industry, responsibilities, education and experience (Bebchuk, 2005). Depending on the industry, it is possible, and appropriate, for employees with the same title and position to earn different salaries. Industries that generate higher profits and monetary turnovers are capable of offering higher salaries than those offered for the same position in industries that do not generate as many profits. For example, the technology and healthcare industries pay higher salaries than the rest (Krugman, 2007). Responsibility among peers in employment can also cause salary discrepancies. An employee vested with more responsibilities will earn higher than those with fewer responsibilities. For example, a supervisor who travels to remote locations while on duty will earn higher than a supervisor stationed at a single site. On education and experience, one organization may require a technical manager to have a master’s degree and five years of experience while another may require a bachelor’s degree with seven years of experience for the same post. Based on these credentials, the two managers will earn different salaries (Bebchuk, 2005).
It is not appropriate for colleagues to discuss what they are earning (Bebchuk, 2005). It is confidential information between an individual and the management. If colleagues found out that a peer earns more than them, they may end up resenting him, or possibly despising him if he earns less. Furthermore, friendships can be broken and feelings hurt, causing unnecessary friction in the workplace (Bebchuk, 2005).
The best time to ask for a pay raise is at the time an individual’s performance is at its peak, warranting the raise (Anderson, 2011). On top of this, employees who have served one organization for long and taken up on additional responsibilities stand better chances to ask for a raise. A common mistake committed by employees is to wait for the periodic performance review meetings to ask for a raise. By that time, budgets will already have been planned and raises allocated. It makes sense to initiate the raise talks early enough in order to be considered in the upcoming budget (Anderson, 2011).
Anderson, R. (2011). Time to ask for a raise. Retrieved from
Bebchuk, L. (2005). The growth of executive pay. New York: Harvard University.
Krugman, P. (2007). The Conscience of a Liberal. New York: Routledge. Read More
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