How can you figure out what you are worth? It seems there is a common misconception between what people think they are worth and what it is that their employers, clients, or customers value about them. With a sense of government dependency and self-entitlement increasing around the world, this article is meant to open your mind to the concept of value based on perception instead of assumption. You will meet the characters involved on both sides of the coin, and some of them may seem very familiar, but ultimately I hope this helps individuals get motivated to do what’s necessary to obtain what they’re after.
The Disgruntled Employee
“I break my back for this company! I work many long hard hours, and this is all you people are going to pay me?”
“I have been with the company for several months now and I think that my work ethic has proven to be an asset to the company. I think I deserve a raise for my efforts.”
“You have people that sit in an office all day that make way more than I do, when I’m the one moving these boxes all day.”
There are laws put in place by state legislators to protect employees from unfair wages. Those laws are based on inflation, cost of living, and some other factors that get reviewed annually. All businesses looking to hire employees must follow these laws. As long as an employer is following these laws, they are free to decide how much they pay their associates, and that is the end of that. As an employee you can sweet talk, request, negotiate, or demand, but it is solely up to the employer what you are paid. What is your pay based on exactly? Well that varies from company to company, but it is very rare that what you think you're worth and what your company thinks you're worth are the same. One of the most stressful jobs is being a fast food employee, but unfortunately for the employee that is not one of the factors involved with calculating their salary. Here’s what the employer considers when calculating salary:
1. How long is the training curve
2. How much does it cost to train one employee
3. What skills are needed to perform the job
4. What level of education is required for the position
5. What is the turnover rate for the position
6. How much business does the company get
7. How many qualified inquiries does the position receive
Understand that as an employee, you have to look at your hired position from the employer’s perspective and not your personal one. If you were a moving part in the machine of their business, how common is your part? Is there people lining up daily to apply for your position? Every company may have different grass roots policies when it comes to determining their employee’s salary. For instance a small mom and pop shop may value their kitchen cook highly, because he/she is the life blood of their business and keeps the small amount of business they receive coming back for more, whereas a cook for a huge established restaurant chain does not play as vital of a role with respect to the amount of business the company receives. So it’s not necessarily how good of a cook you are that matters, it’s WHO you are cooking for that matters.
The Clueless Customers
“…but you were only here for twenty minutes!”
“I don’t understand why I have to pay this much for a piece of plastic.”
“Well I could have done that myself.”
Who ever said the customer is always right? No seriously, because that has got to be one of the most misinterpreted phrases ever manifested in the world of commerce. As an individual customer/client there are several factors that contribute to the value of products and services, and it doesn’t necessarily involve the materials or the amount of time involved with the transaction. Most of the value behind a product or service is dictated by the size of the market driving it. So to say “the customer is always right” in order to get a deal of some sort, makes no sense in the eyes of the business selling it. It’s the customers, plural, that push business to one direction or the other. The amount of time it takes someone to provide a service is only one of a handful of factors considered in the value of that service. Usually a service’s value is based more on its level of convenience to the customer, the level of expertise needed to deliver, the size of the market driving the business, and what the market is willing to pay for their services. The same goes for a product, it’s all supply and demand 101. If you are wondering why no one is buying your homemade key-chains for twenty dollars, then maybe your perception of value is not parallel with your market. Conversely if as a customer you’re wondering why a homemade key-chain is selling for twenty dollars, then there is a strong possibility you are one of the few who are even wondering.
Your Perception is Not Reality Unless the Market Says So
So what are you worth? That is a loaded question in which has an ever changing answer based on the perception of value. To those who love you as a person, you are priceless. You need to understand that an employer is not saying you, as a person, are worth whatever they are willing to pay. A company is just an inanimate object filled with living parts, and hires solely for the purpose of keeping the machine running. Understand what the deciding factors of salary are for each particular company you apply for, and you will know where you will stand when bartering for that next raise. Before you berate someone’s business rates, try to understand that the factors deciding the value of what is sold has very little to do with what your individual opinion is, though it may help if the opinion is shared in a constructive manner.
“I break my back for this company! I work many long hard hours, and this is all you people are going to pay me?”
“I have been with the company for several months now and I think that my work ethic has proven to be an asset to the company. I think I deserve a raise for my efforts.”
“You have people that sit in an office all day that make way more than I do, when I’m the one moving these boxes all day.”
There are laws put in place by state legislators to protect employees from unfair wages. Those laws are based on inflation, cost of living, and some other factors that get reviewed annually. All businesses looking to hire employees must follow these laws. As long as an employer is following these laws, they are free to decide how much they pay their associates, and that is the end of that. As an employee you can sweet talk, request, negotiate, or demand, but it is solely up to the employer what you are paid. What is your pay based on exactly? Well that varies from company to company, but it is very rare that what you think you're worth and what your company thinks you're worth are the same. One of the most stressful jobs is being a fast food employee, but unfortunately for the employee that is not one of the factors involved with calculating their salary. Here’s what the employer considers when calculating salary:
1. How long is the training curve
2. How much does it cost to train one employee
3. What skills are needed to perform the job
4. What level of education is required for the position
5. What is the turnover rate for the position
6. How much business does the company get
7. How many qualified inquiries does the position receive
Understand that as an employee, you have to look at your hired position from the employer’s perspective and not your personal one. If you were a moving part in the machine of their business, how common is your part? Is there people lining up daily to apply for your position? Every company may have different grass roots policies when it comes to determining their employee’s salary. For instance a small mom and pop shop may value their kitchen cook highly, because he/she is the life blood of their business and keeps the small amount of business they receive coming back for more, whereas a cook for a huge established restaurant chain does not play as vital of a role with respect to the amount of business the company receives. So it’s not necessarily how good of a cook you are that matters, it’s WHO you are cooking for that matters.
The Clueless Customers
“…but you were only here for twenty minutes!”
“I don’t understand why I have to pay this much for a piece of plastic.”
“Well I could have done that myself.”
Who ever said the customer is always right? No seriously, because that has got to be one of the most misinterpreted phrases ever manifested in the world of commerce. As an individual customer/client there are several factors that contribute to the value of products and services, and it doesn’t necessarily involve the materials or the amount of time involved with the transaction. Most of the value behind a product or service is dictated by the size of the market driving it. So to say “the customer is always right” in order to get a deal of some sort, makes no sense in the eyes of the business selling it. It’s the customers, plural, that push business to one direction or the other. The amount of time it takes someone to provide a service is only one of a handful of factors considered in the value of that service. Usually a service’s value is based more on its level of convenience to the customer, the level of expertise needed to deliver, the size of the market driving the business, and what the market is willing to pay for their services. The same goes for a product, it’s all supply and demand 101. If you are wondering why no one is buying your homemade key-chains for twenty dollars, then maybe your perception of value is not parallel with your market. Conversely if as a customer you’re wondering why a homemade key-chain is selling for twenty dollars, then there is a strong possibility you are one of the few who are even wondering.
Your Perception is Not Reality Unless the Market Says So
So what are you worth? That is a loaded question in which has an ever changing answer based on the perception of value. To those who love you as a person, you are priceless. You need to understand that an employer is not saying you, as a person, are worth whatever they are willing to pay. A company is just an inanimate object filled with living parts, and hires solely for the purpose of keeping the machine running. Understand what the deciding factors of salary are for each particular company you apply for, and you will know where you will stand when bartering for that next raise. Before you berate someone’s business rates, try to understand that the factors deciding the value of what is sold has very little to do with what your individual opinion is, though it may help if the opinion is shared in a constructive manner.
