MSN Careers had a great article called, “Everything You Should Know About Your Salary“. Here is my favorite part:
“Wages and salaries are set according to a unique blend of external market competitiveness and internal equity considerations at each employer, Brennan says. Every organization has its own way of paying people, and many variables — such as organization revenue size, number of employees, profitability, pay history, corporate culture, geographic location, competitive labor analysis, benefits and perks, and ease of commute — are factors.”
In my experience, people tend to think, “I work harder” or “I do a better job than the guy next to me, so I should get more money”. First of all, that is your perception. It may not be your supervisor’s. Second, the truth is that the market determines our salaries. Sure, there are other factors, like seniority, that are involved. But mostly it is the market. Third, I have a pretty good idea of what the market averages and medians are. Because my employer spends an awful lot of money paying experts to survey our industry, our geographical area and our positions. So don’t quote salary.com to me.
Hm. I didn’t mean that to be a rant.