Factors affecting salary and wage level

Factors affecting salary and wage level

I/ Based on work:

Work is the deciding factor that affects the salary level. Most of the companies pay attention to the significance of a specific work. There are many methods for evaluating work, but how to use methods such as job description table to analyze and evaluate work should be in a scientific and effective way. The work factors that need to be analyzed are:

1. Skills and abilities:

a) The demand of mental labor.
b) The complexity level of the work.
c) Individual necessary qualifications.
d) Making decision skill.
e) Management skill.
f) Social knowledge necessary for the work.
g) Harmonization skill.
h) Ability to perform work details.
i) The level of Craftsmanship.
j) Creativity ability.
k) Innate ability.
l) Experience.

2 – Responsibility to the following matters:

a) Money.
b) Loyalty.
c) Decision making.
d) Work management.
e) Public relation.
f) The quality of work performance.
g) Operating assets.
h) Information secret.
i) Policy making.

3. Effort in working:

a) Mental work requirement
b) Physical work requirement.
c) The pressure of work.
d) The level of work detail required.

4. Working conditions:

1. Working environment.
2. Risks.

II/ Based on each employee.

1. Their working productivity in working to meet the rate of progress.
2. Experience.
3. Seniority.
4. Ability to get promotion.
5. Individual preferences.
6. Other factors…

III/ Company organizational environment:

1. The business policy, strategy of the company.
2. Company culture: for example: some companies emphasize on creativity, they are willing to offer a high salary for creativity work.
3. Company financial status.
4. Company organizational structure: companies with many intermediate department levels normally have many correlative levels of salary.

IV/ Labor market:

1. Official laws on wage and salary, labor contract, payment time, wage payment delay, working insurance, and so on.
2. People’s standard of living in the areas where the offices of the company are.
3. People’s living and consuming customary
4. The average wage rate in the labor market of similar work.

Related docs to Salary & Wage

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2 Responses to “Factors affecting salary and wage level”

  1. name says:

    What about the possible factors that influence drive’s wages?

  2. belinda says:

    thi is execellent

    Factors affecting salary and wage level

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