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Some employees may go to the negotiation
table or come out of a performance review confident of success. And yet
others, although well prepared, come out empty-handed. Let's get into
the head of the employer.
How Your Employers Decide to Pay Your Salary?
In an environment where more companies
are becoming performance-driven, forget about seniority or
qualifications - it is often those who perform best who get the most.
Performance, attitude and reliability are what an employer looks for
most, say the experts.
Based on Business Trends' experience, the
most sought-after criteria are:
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multitasking or multifunctional
capabilities
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a positive attitude
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sense of commitment and accountability
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ability to work effectively and
efficiently
If you possess the above criteria, it is
very likely your employer may decide to pay you an attractive salary.
Many employees may know 'what to do' -
they have a job description or they have the technical skills learnt
through qualification and training. But it is the 'how to do' that is
most difficult and for which employers are willing to pay more. It's
not just the experience but having the right attitude, skill set and
the ability to manage change.
Keep in mind that it is never just about the individual's performance
but the company's performance as well. It is wise to be realistic about
the company's ability to pay the salary before you broach the subject
of negotiation. How well the company is doing and the forecast results
would affect the budget as well. Most companies also have some form of
internal salary structure. That would be one factor taken into
consideration when employers come up with their budget for increments.
For some industries, when it comes to increments or promotions, there
is a percentage that has been allocated for the organization on a
yearly basis. This allocation varies from year to year, depending not
only on individual performance but also on the organization's
performance. After performance reviews, the pie is broken down - those
who perform better get a bigger chunk of the pie.
How much a company is willing to pay, at which end of the industry
range, also depends on the company's philosophy and its perceived value
of its employees. Some organizations may make it a practice to pay,
say, 30 per cent above the market rate because it believes in
recruiting the cream of the crop and that it needs to pay more to
attract such people.
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