When you look for a job or when you are responding to an offer for work, you must consider your hourly fee if you are a contractor or freelancer or you must consider your annual salary if you are to be come an employee of the company. Negotiating salaries and hourly rates is never easy, however, you can use national statistics to justify your request. For example, if you have five years of experience as a software tester, and the national average for software testers is $35,000 (US) per year, why should you accept a position for $25,000 (US), especially if you are good at your job? Even if you have worked for less than $35,000 (US) per year, in such a position, it is actually in the interest of the company to pay you the national average because later on you might find another job that pays the national average amount. So, you will end up leaving the company you are considering now. So, they will only benefit from your service for a short time and then they will have to hire and train another person. So, that ends up costing them.

So, many companies think they win when they hire somebody and give them a salary that is beneath the national average or what they are truly worth. The conclusion of this post is quite simple: companies underpaying employees are investing in a process that will be easily backfire. I am not saying that companies need to pay exorbitant salaries to people. No. Rather, companies need to find the national average and try to work with that figure. In this way, an individual will end up staying with a company and will be less likely to jump ship for a salary increase somewhere else. When individuals stay at companies, their work improves and they become greater and greater contributors toward the success of the company they are serving. It is in the long-term interest of employers and employees, and even contractors, that fair pay be experienced. Also, when a person is being paid fairly, he or she is more likely to turn around and give back to the economy by consuming goods and services that other business owners have vested their energy and time. This is called “win-win” by motivational speakers like Dr. Wayne Dyer and Tony Robbins.

All The Best,

Keith

Visit me at LinkedIn
Visit me at Facebook
Visit me at StumbleUpon