Where Does Your Salary Come From?
I found this pic on LinkedIn. It illustrates why the person at the bottom (or end) of the food chain gets the least.
If you’d like more money, why not position yourself in front, instead of at the end of the salary funnel?
Some people like being self employed. They are their own boss. No one decides how much they’re worth.
When a company goes about cutting costs, those in top management are often not affected. If they cut managers jobs as well, this could make the others nervous. Morale may drop.
Management decide to cut down on the number of staff that they consider as `dispensable’ or don’t re-hire when an employee leaves. Wages can be the biggest expense. Or they hire contractors instead of permanent staff to save money.
Then they allocate that person’s work to the rest of the team. This has predictable consequences, as shown below.
Some managers care about their staff and try to save their jobs. If that doesn’t work, then it may be a matter of time before more jobs are let go.
How can you protect your job? By making sure that you are indispensable to the company.
Are you a Key Person of your team or company?
Point out your achievements like:
- How you help the company to save money or
- How you bring in additional revenue or new clients
- How big clients like you and acknowledge your work for them
to your managers and management’s attention at the appropriate time. Don’t wait until the annual review time. This could also help you when you ask for a raise or promotion. Your achievements are fresh in their minds.
So now that you know where your salary comes from, what are you going to do to get more? At the very least, you can protect the income that you have now.
Live Long & Prosper. Peace.