How do companies decide how much to pay their employees?

imported_Tomato

Diamond Member
Sep 11, 2002
7,608
0
0
Is there some sort of set equation or general rule?

Individually, I'd say I personally generated approximately $300,000 (pure profit, minus expenses) for my particular department last year. I got paid a little over $30,000 (before taxes). My department brought in $1.3 million last year, and I'd guesstimate our combined income is no more than $150,000.

*sigh*
 

LordJezo

Banned
May 16, 2001
8,140
1
0
They say..

White male = x.

black male = x - y

white female = x - y - z

black female = x - y - z - a

asian = x + b

mexican = x - x
 

bunker

Lifer
Apr 23, 2001
10,578
0
71
Don't forget to subtract your salary from that profit, oh and the extra taxes they have to pay for you, oh and any benefits you may recieve, oh and unemployment insurance, and equipment expenses, and lease payments and insurance on the building you work in...etc..
 

DurocShark

Lifer
Apr 18, 2001
15,708
5
56
There's no formula. They pay as little as they can get away with and still retain you as an employee.

In my case, they knew I was being approached by another company, so I got offered more. :D
 

atom

Diamond Member
Oct 18, 1999
4,722
0
0
If you think that's bad try working at a job in the investment sector.
 

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
salary is based on the posistion but is generally negotiable.

Any other compensation in the form of commision or bonus can be any made up figure or based on performance.
 

Stark

Diamond Member
Jun 16, 2000
7,735
0
0
where it work, it's something like what comparable positions in the area pay and subtract 10-20%.

They pay here is not great, but it's stable and has good benefits (and we get a nice year end bonus).
 

Feldenak

Lifer
Jan 31, 2003
14,093
1
0
Originally posted by: Dezign
Is there some sort of set equation or general rule?

Individually, I'd say I personally generated approximately $300,000 (pure profit, minus expenses) for my particular department last year. I got paid a little over $30,000 (before taxes). My department brought in $1.3 million last year, and I'd guesstimate our combined income is no more than $150,000.

*sigh*
I supervise the most profitable contract my company has and I am one of the lowest paid people in my position. In addition, according to salary.com, for my region I'm underpaid by over 10k/year. There is no formula, companies will pay you the lowest they can get away with; they are in business to make money you know.
 

Yax

Platinum Member
Feb 11, 2003
2,866
0
0
Originally posted by: Dezign
Is there some sort of set equation or general rule?

Individually, I'd say I personally generated approximately $300,000 (pure profit, minus expenses) for my particular department last year. I got paid a little over $30,000 (before taxes). My department brought in $1.3 million last year, and I'd guesstimate our combined income is no more than $150,000.

*sigh*
So you get paid 10% of what you generated, your boss gets paid 10% of what the department generated, and so on. Boss gets $130,000 and you get $30,000. You should change jobs and get into a company that pays commission. You'd be alot happier and richer.
 

TravisT

Golden Member
Sep 6, 2002
1,427
0
0
It depends. Most government employers (such as mine) usually look at the Department of Labor on how much their employee's should be paid. The DOL gets those wages by looking at other jobs that are similar to yours and viewing how much they are getting paid as well as the cost of living.
 

Originally posted by: LordJezo
They say..

White male = x.

black male = x - y

white female = x - y - z

black female = x - y - z - a

asian = x + b

mexican = x - x
LMAO
Thats just wrong......
 

freebee

Diamond Member
Dec 30, 2000
4,043
0
0
I'm always ready to "self-compensate" when I feel I'm not being paid enough. Certain feilds one can more easily liberate funds, such as retail, cash-only business, etc. And there are certain fields such as banking and insurance (which I happen to be involved in)...that liberating funds gets you a long term in poundmeintheass prison.
 

crumpet19

Platinum Member
Feb 10, 2002
2,189
1
0
Originally posted by: Phocas
Originally posted by: LordJezo
They say..

White male = x.

black male = x - y

white female = x - y - z

black female = x - y - z - a

asian = x + b

mexican = x - x
LMAO
Thats just wrong......


hilarious

EDI:: this is the first JEZO post I aprove of
 

DurocShark

Lifer
Apr 18, 2001
15,708
5
56
Originally posted by: freebee
I'm always ready to "self-compensate" when I feel I'm not being paid enough. Certain feilds one can more easily liberate funds, such as retail, cash-only business, etc. And there are certain fields such as banking and insurance (which I happen to be involved in)...that liberating funds gets you a long term in poundmeintheass prison.
True. Banking as a rule way underpays. Every banking job I looked at was at least 20% below the same IT position in other companies.

The company I'm at now is hiring like mad and pays relatively well (actually pretty good).
 

00Jones

Banned
Jul 15, 2001
800
0
0
Originally posted by: LordJezo
They say..

White male = x.

black male = x - y

white female = x - y - z

black female = x - y - z - a

asian = x + b

mexican = x - x
mexicans get more then I thought :Q















j/k
 

CaseTragedy

Platinum Member
Oct 24, 2000
2,690
0
0
my supervisors look at whats left in the coffee jar--and give it to me.
last month i made $14.73.
($7.54 after taxes)
 

Yax

Platinum Member
Feb 11, 2003
2,866
0
0
Originally posted by: 00Jones
Originally posted by: LordJezo
They say..

White male = x.

black male = x - y

white female = x - y - z

black female = x - y - z - a

asian = x + b

mexican = x - x
mexicans get more then I thought :Q















j/k

x-x because its all under the table duuuhha! This is why they don't have to pay any taxes.

Edit: b < 0
 

BooGiMaN

Diamond Member
Jul 5, 2001
7,955
0
0
why would you think you should get compensated based on the revenue you brought in instead of the experience and knowledge to do the job for the position you were hired for?

if that was the case i should be paid a percentage each time a system i designed gets sold...id be rich!

 

Vic

Elite Member
Jun 12, 2001
49,603
12,167
136
Originally posted by: DurocShark
There's no formula. They pay as little as they can get away with and still retain you as an employee.
This is true.
Originally posted by: DurocShark
Banking as a rule way underpays. Every banking job I looked at was at least 20% below the same IT position in other companies.
This is not.
I work in "banking" and know exactly how much I am paid compared to how much revenue I personally generate. A very high ratio, is all I will say.
There was a time when IT was ridiculously overpaid. That time is now gone forever.
 

CPA

Elite Member
Nov 19, 2001
30,322
4
0
Most large companies look at industry averages, geographical averages and other economic factors. Then they design wage scales/grades and attempt to have all employees wages within a given grade average the middle of the grade when combined. Generally noone assigned a grade is paid below the grade floor or above the grade ceiling.

Most small and mid-size companies wing it and pay as little as possible.
 

Toasthead

Diamond Member
Aug 27, 2001
6,621
0
0
THey say to themselves:

"What's the lowest amount we can offer to get them to accept the job?"

Then they cut 5-!0% off of that and offer it. That way when you counter with a 5-10% higher number they have you right where they want you.

At least thats how I negotiated pay for my employees when I used to do hiring's.

 

ASK THE COMMUNITY