A question frequently asked is, “Why is that person paid more than I am when we both perform the same job?” The answer to this question lies in understanding the components of the wage mix as discussed in this chapter. While we may disapprove of the idea that someone is paid more or less than we are for similar work, nevertheless, factors both internal and external to the organization influence the final salary paid to a job or a specific person. Often we have little control over the wage mix factors. However, at other times, we can improve our wage by gaining additional job experience or seniority, or by obtaining increases in job knowledge or skills. This project is designed to give you experience in understanding why jobs are paid different salaries.

Assignment

Shown here are the annual median salaries paid to selected occupations listed in the 2004– 2005 edition of the Occupational Outlook Handbook. Study the salaries paid to these occupations and then answer the questions that follow as to why the differences in salaries exist. Relate these reasons to the internal and external factors of the wage mix that are discussed in the text.

Occupation                             Median Annual Salary

• Flight attendant ……………...............…       $43,140

• Librarian ……………………..................…       $43,090

• Construction laborer …………............       $24,270

• Computer systems administrator….      $54,810

• Police officer …………………..................      $42,270

• Motor coach operator ............……….       $29,008

• Lawyer ……………………....................….       $90,290

1. What factors may account for the wide differences among salaries for different occupations?

2. What factors may account for the differences among salaries for the identical occupation in the same organization?

3. What factors may account for the differences among salaries for the identical occupation in different organizations?