How Much Is Your Job Worth?

The good thing about being employed by a stable company is the assurance that every month, no matter what, there’s money coming in as long as you work for the company. However, if you ask most employees, they will probably tell you that they wish there was more.

Wishing for a higher salary is not necessarily a bad thing. Most of us need more of it so that we can afford everyday things like rent, food and the can’t-do-without cellphone load. More importantly, we want to be able to take care of our loved ones and move up in life. These are noble reasons and we all deserve to live a good, comfortable life. BUT, is asking for a pay raise justifiable?

Before barging in your boss’ door and demanding for a salary increase, it is important to ask critical questions that can give you a better chance of getting what you want. These are:
• Am I doing excellent work?
• Can the company afford an increase in my salary?
• How much is my job worth for my company?

JOB WORTH

Job worth is the value that your company places on each job position and function of each employee. To put it simply, it is the “price tag” of your job. The higher your contribution to the company, the higher pay you deserve. There are various factors that determine your job worth, but these are highly dependent on what the company values most. For instance, some companies put more credit on attitude over skill. Others look for performance and contribution over tenure. Hence, different job positions and functions will have a different job worth for each company. Different employees have and deserve different salaries.

How Salaries Are Determined

The truth is, salaries come in all shapes and sizes. The person sitting beside you in the office may be getting a bigger pay slip than you are (or he may be getting a smaller one) regardless of how long you have been working for the company or how many mouths you have to feed.

Not a lot of people know this, but structured companies go through a process called Job Evaluation to design a pay structure that is fair and reasonable for their employees. A pay structure is basically a charted guide that shows the ranges of salaries for each position level in a company. This helps companies determine the pay range for new hires. It guides them on pay increases and promotions.

In our highly attended Job Evaluation class, we thoroughly explain and apply several methodologies for job evaluation. Since one article is not enough to explain the process, let me just give you a birds-eye-view of the Job Evaluation Process. If you are an employee seeking to know more about salary negotiations, this will give you a good background for stating your case. If you are an HR practitioner or business owner, Job Evaluation is a worthy endeavor that you should learn and apply to provide a pay scale that is appropriate for your employees.

Why Salaries Sometimes Differ Among Same Level Employees

Although all employees are an important part of a company, not all job positions and functions are created equal. See, some jobs are critical to the existence of the company in the sense that the company cannot survive or will be in turmoil without it (ex. Sales, Accounting, etc.). Meanwhile, others are really not as vital because the company will still run without it or the function can be outsourced. Some jobs contribute directly to the company’s profits while others do not. Hence, it is important to adjust the payroll based on the importance of one’s job function.

Who Decides On How Much I Should Get Paid

For smaller companies, the owner usually decides. However, for growing companies and big establishments who conduct Job Evaluations, a panel is elected. The panel comprises of representatives from each sector or department. They go through several meetings where they evaluate, rate and deliberate various job positions and functions based on pre-determined factors important to the company. These meetings sometimes get heated as each representative defends the worth of their jobs and their colleague’s job. After going through the process, the panel with the help of HR, designs the Pay Structure of the company.

How Does the Pay Structure Affect Your Salary

Once HR comes up with the Pay Structure, they will seek the approval of top management. If approved, they will use it as a guide for determining your salary. So, let’s say you are a new employee and you applied for a certain position in their company, your salary will more or less conform to the salary range specified for your rank or level. If you are asking for a raise, the amount of your raise will fall within the range, otherwise you may get promoted.

JOB EVALUATION is a process and method that companies use to determine your pay. Your job worth is dependent on your functions and performance. So be sure to prove your worth by adding major contributions to your company. In other words, increase your job worth by being worth it.


Jhoanna O. Gan-So is president of Businessmaker Academy and the managing director for HR Club Philippines. They conduct seminars on HR Management, Job Evaluation, Labor Law and Trainers Training. Together with her team, she has recently launched the INSTANT HR TOOLKIT, a service that provides HR practitioners with over 100 ready-to-use downloadable, customizable and printable HR manuals, contract, letters forms and templates. To know more about HR seminars that they offer, you may visit www.businessmaker-academy.com or call (632)6874645. To know more about the Instant HR Toolkit, you may visit www.hrclubphilippines.com. You may email your comments and questions to: mbworklife@gmail.com