16 Feb The Reality Of Entry Level Salary
The advancement of Technology and rise of workplace specializations have spiralled many changes in employment trends, career diversity, job descriptions and even salaries. Talentmine carried out a survey of the salary expectations of entry-level applicants on social media cutting across different professions, skill-set, industries and from all valid responses gotten from the survey, we have been able to generate knowledge of salary expectations of entry-level applicants in Nigeria. The poll results however showed that the average expectation level of the entry-level employees is on the high side and this prompted us to discuss in details the factors that determine a salary because fresh graduates often put starting salaries at the top of their priority and sometimes overlook total compensation, such as paid health insurance, career training and retirement plans. In deciding the salary, many factors come into play, including the performance of the organization, its future plans, the availability of talent, the importance of the role, the reputation of the organization, location etc.
Industry, or type of employer, strongly affects starting salaries. Accountants and auditors who work in the securities and accounting/bookkeeping services industries earn more while the medical and traveller accommodation industries tend to pay accountants less. Your employer’s financial status may also affect your starting salary, larger companies with more resources might be able to afford more pay and benefits than a smaller organization. Some companies structure the responsibilities of a position differently than others. If you have more decision-making responsibilities, you are likely to earn more.
Position Salary range
This is the range of pay established by employers to pay to employees performing a particular job or function. Corporate institutions follow a Salary range which generally has a minimum pay rate, a maximum pay rate, and a series of mid-range opportunities for pay increases for employees. It is determined by market pay rates, established through market pay studies, for people doing similar work in similar industries in the same region of the country. The salary range for executive level positions are normally the largest and the salary size trickles down as the position narrows down.
Competitive Labor Markets
Organizations understand that overpaying or underpaying employees will always come back to haunt them either way so they offer a competition fair, the market-driven salary range for highly needed skills and competent individuals so as to keep them happy, loyal and working for them. In periods of high unemployment, many skilled people may be available for employment and highly skilled people will be employed for less money.
Experience and Education
Although this may not be explicitly discussed, the number of years of experience and education, especially if you have outstanding grades from a credible institution can have an influence on your starting salary. If your previous experience in the position shows good results, your salary may be reconsidered to get you closer to the higher end of the range, while a low or non-experience may start on the low end of the range. Similarly, if the company is doing well and has a profit-sharing model, employees may reap benefits from the company’s performance.
Starting salaries varies widely for the same position in different locations due to how the difference in the labour market and cost of living may influence pay for some careers i.e. rural areas and smaller cities tend to have smaller starting salaries than large metropolitan areas due to the level of industrialization.
Size of salary depends absolutely on the above-mentioned factors and so should expectations. To earn more, be better positioned, better skilled, more experienced and vast in your industry. For further information, please visit our career center and take our courses to help build your career and earn what you deserve.