7 factors that determine how much we can earn

13 May 2019

Now it is easier than ever to compare your salary with others, as salary or its range is stated in job advertisements. Paylab works in Latvia as salary information database Algas.lv administered by CV-Online and for more than 10 years has gathered information about wages and has made a list of 7 main factors that explain why we earn more or less than the average in the market.

Now it is easier than ever to compare your salary with others, as salary or its range is stated in job advertisements. Paylab works in Latvia as salary information database Algas.lv administered by CV-Online and for more than 10 years has gathered information about wages and has made a list of 7 main factors that explain why we earn more or less than the average in the market.

Job in most demanded fields

Those companies that work in the most demanded fields can offer better salary across all levels. Higher salary consists of generous salary system and financial bonuses. Areas that are demanded long-term: IT, energy industry, telecommunications, banking, as well as other industry fields. A situation when an office administrator in a big energy company can earn up to 30% more than an office administrator in, for example, a tourism company is nothing unusual.

Job in big companies

The amount we earn depends on the size of a company. Larger corporations offer higher salary and other advantages to their employees, when compared to smaller employers. According to analysis results provided by Paylab, companies with more than 250 employees have up to 14% higher pay than those with up to 50.

In large companies the system is structured and carefully organised allowing employees to specialize and improve in a specific working field, which can in turn ensure higher pay. Meanwhile, structure in small companies can be unclear and employees need to do a wide variety of work tasks and have to be versatile.

Foreign companies in private sector pay more

Private sector has higher salary when compared to public sector. Even if companies in public sector can compete with private companies locally, it is harder to compete with foreign private companies. According to Paylab analysis, average pay in foreign companies is up to 12-50% higher than the average wage in the local private sector.

Main reason for it is that foreign companies can ensure higher capital, more attractive corporative culture and different standards for professional growth of employees. The employees pay in the public sector is influenced by certain law restrictions.

Pay according to experience

One can say that pay gets higher according to years worked and experience gained. According to data collected by Paylab, employee, who has worked in the same position for more than 6 years, earns up to 20% more than a newly employed. When an employer is seeking a worker with experience, it will understandably cost more than one without it. Experience doesn’t come for free. One, that has invested time, resources and energy to attain adequate knowledge and skills, earns more.