Why do companies have income differences?

Same job, lower salary: where does the difference in income come from?

What are salaries based on?

Many assume that income is primarily determined by industry and region. That is basically correct, but the company's influence usually has a much stronger impact: Is it a small one? Commercial enterprise or a Large corporations? Is the operation in the Profit zone or is he making losses? Is it a local one Private company or the sales subsidiary of one international group?

So how are salaries now determined?

By two logical factors: by the person on the one hand and by the employer on the other. For the person, it is training and experience that count. With employers, it's corporate success and size too: We see very clearly in the data that successful companies pay significantly better than less successful companies. And the Company size also has a clear connection with income.

Bruno Gangel, C2X

Should employees pay particular attention to the industry, size and internationality of the employer when looking for a job?

Yes and no! An internationally active freight forwarder pays good salaries, a local freight forwarder significantly worse. However, both are recorded in the same branch.

Internationality: With the same number of employees, an Austrian commercial enterprise will generally offer lower incomes than a branch of an international company. And a manufacturing company with as many employees as possible can often pay less than a small sales office of a well-known brand. Ultimately, it also depends a lot on where the individual feels comfortable, where he / she can find opportunities for development and development.

What about regional employment opportunities: Is the employer in the neighboring town preferable to the job in the metropolitan area?

The availability of jobs and job seekers determines income. There is a very strong one here City-country effect. This obviously serves both sides well: Employees are often satisfied with significantly lower salaries if they save themselves long commuting. Costs play a role, the stress of traffic jams and the loss of life on the way to and from work. This salary effect is of course reversed when it comes to executives or specialists. If there is no SAP FiCo project manager in the Waldviertel, then he just has to be "imported" from a metropolitan area - and that costs!

In principle, however, the following applies: regional wage differences continue to wear off in Austria, but the region's economic level is still important. Well-developed regions are distributed: at the top are the Vienna area, the Upper Austrian central area, the Salzburg-Hallein area as well as the Lake Constance area.

Determine Demand and supply really still the job market?

Definitely yes! Just as accounting specialists with knowledge of modern systems are rare today, they used to be specialists for mainframe operating systems and, many years ago, technical college plastics technicians. Wherever there are more companies looking than candidates are available, it becomes a provider market and salaries suddenly get a mobility allowance. This can only be the case to a limited extent in one region.

But how high is the influence of the person, so what do the training, skills and mobility of the employee weigh?

Quite strong actually! You have to see yourself as a product - especially as a job seeker: only one product, not changeable at short notice, no evasion is possible and a huge, but unfortunately opaque market all around. Count in this situation Mobility, attractiveness and distinctiveness. I differentiate myself and am therefore more attractive on the market, also through the skills I have acquired - practice as well as training - and through my behavior: How actively do I approach problems, can I play in a team, am I the problem solver or cause. And through regional or international mobility, I can multiply my opportunities in the job market.

Is there really “fraudulent labeling” in the item names?

This happens very often: suddenly everyone is a manager, even without personnel responsibility; the secretary is called an assistant, but does not do this job quality; and so on. The reason for this is different: Sometimes you just want to have a strong presence towards business partners, sometimes international job titles are adopted in an Austrian organization that does not even have these positions; and sometimes you want to save yourself the raise with a pompous title. In any case, it makes comparing earnings difficult and sets up traps for employees.

What is the working atmosphere in euros worth of salary?

Obviously a lot! I know income in companies - every employee could earn 20 to 30% more if he / she would just change the side of the street; nevertheless nobody does it. We all simply have a basic need to be able to do a good job in a good team with good success. And let's be honest: Going home after a day at work in such an environment is really priceless!

Examples of salary differences in the same occupational fields:

More articles from the series salary 2011:

Salary 2011 - Production: Training and company size determine the wage level

Salary 2011 - Finance and Accounting: Money, Money, Money

Salary 2011 - assistance, secretariat, administration: often underpaid despite specialist knowledge

Salary 2011 - IT and EDP: If you learn, you earn

Your salary in 2011: more on the wage slip, less in your wallet