Understanding how employers determine salary


show more Understanding how employers determine salary provides you with in-depth training on Business. Taught by Valerie Sutton as part of the Negotiating Your Salary show less
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Understanding how employers determine salary

You know understanding your worth to the market is the first step to successful negotiations. Knowing how salary ranges are determined will help you to understand how to best negotiate. Many organizations have a compensation policy that sets rules for how employees will be paid, how salary reviews are handled, as well as how the company will calculate bonuses. Employers determine this policy based on three considerations. The first consideration you may think of is individual equity.

This is based on your unique talents and potential as an individual. Individual equity is where your advantage lies in the negotiation process, which we will cover later in this course. You have to remember though, it is not what you think you're worth, but what the employer thinks the job position is worth. Which is why we need to look at two other considerations. The second consideration is internal equity, which looks inside the company. It is a measure of how your salary compares to othe...

Understanding how employers determine salary
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Understanding how employers determine salary provides you with in-depth training on Business. Taught by Valerie Sutton as part of the Negotiating Your Salary

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