Income Level Factors



Income Level Factors

✓ There are many factors that affect a persons’ level of income

✓ Some factors are related to the person, and others are related to the business

Factors Affecting Employee

Education

✓ Higher education doesn’t always translate into more money, but it drastically increases the chances of success

✓ The average starting salary increases an average of 15% each level of education you obtain

✓ Most jobs currently require a minimum of a post secondary (college, university) degree

Experience

✓ The more experience you have, the more valuable you are to an employer

✓ People who have experience in a field often begin at a higher salary

✓ The phrase “salary commensurate with experience” in an advertisement means if you have experience you can expect a higher salary

Personal Performance

✓ Promotions usually occur from personal performance

✓ Emotional quotient is a factor in personal performance

✓ It includes self-awareness, altruism, personal motivation, empathy and the ability to love and be loved

✓ Higher EQ people usually have more rewarding and successful careers

Uniqueness of Abilities

✓ If you have a unique ability, you have an opportunity to make more money

✓ Professional athletes make more because of their abilities

✓ Entertainers make more as well because of their abilities

Factors Related to Business

Type of Business

✓ Some people doing the same job may earn more because of the company they work for

✓ It may also depend on the area people live in

✓ Big city jobs tend to make more than smaller city jobs because of the standard of living

Success of Business

✓ You income is usually directly related to the success of your business

✓ The better your business does, the more money you can earn

Economic Conditions

✓ Depends on where the economy is in the business cycle

✓ Supply and demand also affect earnings

Other Job Benefits

Self-Fulfillment

✓ Not true for all jobs, but if you find a job you love, it makes work easier

Skill Development

✓ You need to continually improve in life to succeed

✓ Different jobs allow you to learn different skills that are relevant to life

Employer Benefits

✓ Pension – CPP or job related pension

✓ Health Insurance – dentistry, eyeglasses, prescriptions

✓ Other Benefits – Christmas bonus, extended holidays for experience

Stock Options

✓ Companies may give employees the ability to purchase stock in company on top of salary

✓ Gives them the ability to make more at year end

✓ May also improve employee motivation

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