salaries in your country ? What are the highest and lowest
According to '2015 Korea Job Information', a recent survey of 24,288 incumbents in 736 occupations by the Korea Employment Information Service, the average annual salary of incumbents last year was 39.32 million won.
The average income of the top 75% was 48 million won, and the bottom 25% had 25 million won, widening the gap.
Among these, the occupational group with the lowest income was the artist. The average annual income of theater and musical actors was 9.8 million won, and the bottom 25% earned only 4 million won.
Next was a nun with an annual income of 12.6 million won, a housekeeper 14.04 million won, and a cleaning lady 14.38 million won. Other low-income occupations include cashiers, ticket clerks, security guards, nursing assistants, and caregivers.
Most of the low-wage occupations were found to be concentrated in non-regular workers or in the service sector,
The highest -paying jobs and lowest-paying jobs are listed from 1st to 10th .
10. Psychiatrist (97.21 million won)
9. Aircraft pilot (98.45 million won)
8. Financial asset manager (98.73 million won)
7. M&A expert (99.41 million won)
6. Physician (12.27 million won)
5. Ophthalmologist (17.2 million won)
4. University president and dean (115 million won)
3. Member of Parliament (12.127 million won)
2. Pilot ( 133.1 million won)
1. Corporate senior executives (160.4 million won)
salary among domestic occupations Lowest ↓ Top 10 occupations
10. Childcare assistant (babysitter) (16.77 million won)
9. Evangelist (16.63 million won)
8. Shoe Cleaner (16.53 million won)
7. Kitchen assistant (16.49 million won)
6. Parking attendant and receptionist (KRW 10.6 million)
5. Assistant performer (15.57 million won)
4. Cleaning staff (14.38 million won)
3. Housekeeper (1.44 million won)
2. Nun (12.6 million won)
1. Theater and musical actors ( 9.8 million won)
The highest-paid job in Korea was 'Corporate Senior Executive' with 16.04 million won , and the lowest-paid job was ' Theatrical/Musical Actor' with 9.8 million won .
salaries between the two occupations was 154.24 The difference in million won , a huge difference.
Is salary really based on ability?
In this article, I would like to write a little about 'salary', which is the crystallization of all the pain and remorse of office workers.
It's a long and complex story, so it's probably going to be written over several chapters.
What kind of work is the salary really worth?
1. In the case of performing a fixed task at a fixed time
This is the case in convenience stores or cafes. If you do a set amount of work for a set amount of time, you get a paycheck in return. This is the amount of money you get if you negotiate well or meet a shopkeeper who spends a little more, with the minimum wage set by the government as the lower limit.
However, this kind of work does not actually recognize the difference in the quality of work. Even a part-timer who can't work gets the minimum wage, and even a part-timer who works very well doesn't pay 2-3 times that of other part-timers.
2. When the quality of work is important
If you want to be paid much more than the minimum wage, you have to do a job where 'quality of work' is important. For freelance developers, for example, the quality of the developed product is far more important than the labor time itself, and that determines the size of the salary. In the same vein, the quality of work for professional baseball players is that they score high in indicators such as batting average, RBI, and home runs, or have a low ERA.
But something is a bit strange.
The quality and level of work can only be confirmed when the work is finished and the results come out. However, freelancers and professional baseball players are paid before the results are released. Freelancers indicate how much they will pay in the contract before performing their duties, and baseball players set their annual salary in advance at the beginning of the year. In this case, the pay is precisely the price for the value that labor is 'predicted to create' rather than the price for the value it 'creates'.
Setting wages based on future prospects can lead to dissatisfaction between the giver and the receiver if done incorrectly. In baseball, although older veterans have done well for the past two or three years, there are many cases where the result of salary negotiations is unfavorable because of their old age.
3. When work results or performance are important
the results of work, that is, performance, among the quality of work . Therefore, in order to prevent this risk, the salary is set by focusing only on
People in sales jobs are often this way. For most people in this job, incentives based on sales performance make up a large part of their salaries. There are some people who receive a lot of money because of their excellent performance, but this type of contract is usually unfavorable to workers. This is the so-called Pareto Principle, because it is very common for the top 20% of performers to take 80% of the total salary. There are some who like this as the true level of ability.
Broadly speaking, most large incentive contracts, such as attorney's success fees, fall into this category. In summary, this method is a method of paying only the price of labor, especially labor that produces results.
In summary, wages are clearly the price of labor. However, depending on whether you view labor as the time invested, the quality of the work expected to be produced, or focus solely on the results you produce, the way you set your pay will change.
Most workers' salaries are a mix of first and second. First of all, it is a mixture of the cost of spending time in our office and the cost of the expected outcome of that labor. (To this, profit sharing is added, in which the company divides a portion of the profits earned in the year, but this is not easy to predict, and there are not many companies that make a lot of money to share this.)
How is the salary amount determined?
Now that you understand the payroll logic, let's think about how to size your payroll.
If you do a set job at a set time, the amount of your pay is set by law.
As I mentioned earlier, although there is a clear difference in the quality of work even for the same part-timer, most of them do not acknowledge this difference greatly. For this reason, it is a form of taking the minimum wage as a base and adding a small amount depending on various conditions.
When a salary is based on expected outcomes, the size of the salary is strictly based on two factors. One is 'negotiation' and the other is 'salary of comparison group'.
If you look at the amount of free agents in professional baseball, the salary varies greatly depending on whether the position is in high demand or not, and whether or not there are many teams that need the role that the player plays that year. The reason why there is a double difference in salary even though it is only a slight difference in performance or the difference between last year and this year is because it is the result of 'negotiation'.
However, no matter how important the negotiation is, the size of the domestic professional baseball market, the salaries that similar players have received, and the perspective on the salaries of each team are also evident. In this way, the 'Reference Pricing method' is a case in which negotiations are conducted based on the player's individual value as well as the surrounding circumstances, especially the salary of an existing similar player.
Therefore, even if there is a pitcher who throws as much as Kershaw in Korea, it is impossible for his annual salary to be 30 billion won. Because the comparison group is not MLB. (Of course, players who have been to MLB often sign contracts that are significantly higher than domestic FAs, even if they fail there. In this case, it is correct to understand that they led the negotiations to an advantage because of the power of the negotiation, that is, the star, rather than the issue of the comparison group. Well, among baseball fans, there are people who just say that each team went crazy and made excessive contracts with players who failed, but professional baseball teams are also companies, so they will give them a lot because they have their own calculations.)
In the case of receiving a salary based on performance alone, there is usually a cost table for each product within the company, and it is often the case that the company determines how much it can be used as a salary. If sales increase a lot, you might think that you are paying too much for one salesperson, but in fact, the overall profit also increases with the increase in sales, so deducting a certain percentage of this is not detrimental to the company.
So how is my salary determined?
So, how is the salary of a regular employee determined? Does it depend on what the CEO decides to do?
Will wages go up if the union is strong? Let's look a little further.
I mentioned earlier that workers are paid as a function of time input and the value they are expected to create.
The input time function is relatively easy. Currently, it is around 2 million won in Korea. The problem is the value expected to be created by the office worker. It's really hard to measure or predict. Moreover, it is different depending on whether they are new or experienced, and the expected value of the employees who are put into the production line and the expected value of the employees who do the marketing strategy are different.
Calculating all these expected values in companies is close to a waste of time, if not in an industry where the value of each player is very high, such as in professional baseball, and there are severe restrictions on the number of people. So I write another way.
I mentioned earlier that workers are paid as a function of time input and the value they are expected to create.
The input time function is relatively easy. Currently, it is around 2 million won in Korea. The problem is the value expected to be created by the office worker. It's really hard to measure or predict. Moreover, it is different depending on whether they are new or experienced, and the expected value of the employees who are put into the production line and the expected value of the employees who do the marketing strategy are different.
Calculating all these expected values in companies is close to a waste of time, if not in an industry where the value of each player is very high, such as in professional baseball, and there are severe restrictions on the number of people. So I write another way.
The first method is 'Reference pricing' .
This is the logic of “In the industry our company belongs to, other companies give a marketer with 3 years of experience roughly how much, so we should give it that much.” The reason that this logic works is that it comes from the logic that the people who do the job get paid roughly rather than the specifications of each individual employee.
Inclusion in the comparison group is based on 'different companies within the same industry' . However, it is not only within the same industry that employees change jobs. It crosses industries. (The company competes for recruitment just like employees compete for a job. This means that they decide how much they will pay in consideration of their competitors in the recruitment market. In the case of Hyundai Motor, Samsung Electronics will also consider the salaries of employees. It's a competitor when it comes to that.) So, we also consider whether the job seems to receive a certain amount by industry. And it decides the position the company wants for the industry and the job.
For example, when it comes to automobile production, the comparative forces within the industry are companies such as Hyundai Motor, Kia Motors, Renault Samsung, and Ssangyong. Here, I am Hyundai Motor Company and I am the overwhelming number one in the industry, so if I decide to treat my employees first, I will choose the one that gives the most in the same industry, and if I choose to give only enough so that a company that does a good job will not be taken away by a company bigger than us The salary table will be decided by 80-90% of the top companies.
Even if we are a really small start-up, if we make a finished car, the gap with Hyundai or Kia's salary table will be huge, but it should be taken into consideration. Otherwise, talented employees might want to move to a large company. So, the fixed salary is small, but at the very least, the amount of compensation is increased in the same way as stock options.
As you can see , in reference pricing, the salary table is set according to the average value of the industry and the size and status within the industry rather than the individual value of each employee. Therefore, if this tendency is strong, employees who do well will express dissatisfaction with their salary, and employees who do not work will be told that it is a salary lupine. Because there is not much consideration for each employee.
So , secondly, we try to reflect individual differences in the basic table .
Well, in Korea, there is not much difference in the amount of this item, and there are many controversies about the fairness of individual work evaluation, so it does not seem to be done properly. And in the case of experienced workers, the previous salary is also a reference. However, rather than affecting the company's salary table, it serves as a basis for negotiating salary at the time of joining the company. In many cases, experienced workers are required to submit salary statements and health insurance details from their previous job when they change jobs.
Then, what logic is followed by the disparity in salaries by industry? It is a function of the ratio of fixed and labor costs by industry and company, and the rate of return. This story will be told in the next article.
Why is my salary low?
Let's do some tidying up. Most of the salaries of office workers are determined according to certain criteria, regardless of whether I am good at it or not.
The most basic is the salary based on 'the fact that working hours are invested', and it is approximately 20 million won. If I'm getting a salary like this, I'm working hard and doing well, but the company is paying the price assuming that, for whatever reason, I'm getting similar results no matter who I use instead of the individual value of my labor.
The second factor is industry-specific and job-specific references, i.e. the salaries of people similar to you in the comparison group . If I make a lot of contributions to the company and the pay is too low, it often means that the average salary for my job in my industry is low, or that my company has decided to take a slack position within the industry. It is difficult to expect a large change in salary if you go through a promotion very quickly or if you change jobs unless you leave the industry. (The salary for a job within the industry is, in a way, a kind of collusion among companies. Reference pricing is when a competent employee does not decide to leave the company and go to a competitor.)
And there are cases where the demand for a specific job within an industry suddenly arises, and the price of the job itself soars. This applies mainly to personnel in the technical field. Industry external shocks – whether Chinese semiconductor companies made large-scale investments and needed manpower, or AI and big data programming personnel were rapidly running out as AI received attention. What happens when - is given.
The third factor is the difference in salary according to my personal performance. Since this is related to evaluation and a lot of other issues such as corporate culture, I will pass it in this article. In general, however, it can be seen that the lower the rank and the lower the age, the greater the influence of the preceding two factors is, the higher the rank, the greater the difference in salaries according to individual abilities.
Combining the stories so far, the reason my salary is low may be because I am not good at my job. But rather than that, it seems more likely that I have chosen the wrong industry, job, and company. So, both of you must be tying up your hair to go to a large company. (Of course, it is a story when the age is low, and when it is more than 10 years old, individual abilities and achievements become much more important.)
In the next article, we'll talk about individual job performance and evaluations that make the difference in pay.
※ Salary and compensation are complex fields that there are researchers who specialize in this field only. Since I'm writing this short, there are a lot of parts that I didn't mention.
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