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Why the same level of Designation earns different rates of Salaries

Equal pay for equal work. That sounds so “Fair and Square”. People doing the same job or work of equal value should get fair and equal amounts of payments, but in many cases, they don’t, even though the law says they should. However, not all discrimination is illegal; an employer can choose to pay some employees less than others or pay some employees more, even for the same exact job.

picture taken from Milwaukee Area Technical College

So, how do we specify the situations in which the company may pay different salaries to its employees under the same job title?

Payment may correlate with your Credentials and Field of Expertise

In some cases, employees with the same job role or description may possess very different qualifications, credentials, previous job experience or even areas of expertise. In these situations, the possibilities of the job applicants to be hired at a high salary rate may remain as a competitive matter. An employee with in-demand credentials, such as IT, soft-skill and foreign exchange certificates, often has more job options than an employee without these credentials. As a result, employers may end up raising the payment rate for the better-qualified employees so as to keep them from moving to another company offering higher salary levels at a seductive amount.

Payment may correlate with your Performance

Most of the employers provide economic incentives as expectations for their employees’ productive performances. Two employees with similar backgrounds, job experience, and seniority may still perform at different levels of work. While both may meet the standards set by the employer, an employee who is more likely to make fewer errors, gets along with co-workers better, have stronger concentration on the working environment and consistently strive to meet and exceed challenges is far more valuable and impressive in the employer’s eyes than someone with average or normal work ethics and personal skills. In this way, the manager will probably recognize your greater value and contribution to the company and might think about rewarding this value by agreeing to pay you a higher salary than before.

Payment may correlate with Employer-Employee Negotiation

This might sound strange and weird, but it is true that some employees demand more than their colleges simply because they are more assertive in requesting salary increases and can make a good impression on the employer just on the first day they meet. Some people reported that many employees begin working for companies at a high salary rate than the colleges because they negotiated a higher level of compensation during their interview assessment.

However, it’s also true that employee compensation is not always measured in terms of the take-home pay. It may come out in different patterns; an employer may allow one employee to work fewer hours each week so that the employee can take up college courses if he or she is a college student, or an employer may also provide employees with additional vacation days on special occasions instead of a high salary.

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