Five Determinants of Salary

Our children are in the teen years... where they think about life. Especially No. 1, she has been putting serious thoughts into her choice of career. Amazingly, this pandemic encourages her to work even harder since she believe it would be harder for her generation.

So, recently one of our dinner table conversation was what determine a person salary. This topic has been on my mind of years, every time I screen through job openings. Remuneration package is always linked to:

1. Number of hours to put in

To professional, this may include travelling, being away from your family

2. Sheer good old talents and capability

Unique or strong talent, can spend lesser time at work while earning similar pay

3. Responsibility

In short of two above, if you are willing to take responsibility, definitely it is valued and paid accordingly

4. Risk

Simple supply and demand of work force. Without lucrative pay, we won’t have anyone willing to put themselves in danger. Physically or legally or ...

5. ... Connection...

Originally I only had 4 above. Then this came up. This does not include nepotism perse. But more of people skill. One aspect is if you are closer to the correct people, another aspect is your network in relation to job needs. Personal relationships do influence professionals.

What’s your dinner table conversation topic? :)