Unit no 4 company wage policy

Unit No: 4

Company Wage Policy: National Wage Policy: Objectives, Concepts; Labour Market: Concept, broad
types; Wage Determination; Pay Grades, Economic Principles; External Equity: Wage Surveys.

Wage Policy – National Commission on Labour on Wage Policy 

According to the NCL, “The main aim of a wage policy, as we envisage it, is to bring wages into
conformity with the expectation of the working class and in the process seek to maximum wage
employment”.

Objectives of National Wage Policy:

The importance are of wage policy is obvious as it forms a highly sensitive and complex dimension of
labour policy and influences employee’s level of motivation, morale, productivity and standard of
living. Its importance has been recognized by the Constitution of India. The provisions in the Indian
constitution and the policy statements in successive five-year plan documents provide useful insights
into the Government’s approach towards wage policy.

The second National Commission on labour recommended the appointment of a high-level committee
with technically competent people including economists, trade unionists, entrepreneurs and consumers
to formulate a national wage policy.

Despite several theoretical guidelines for the formulation of a wage policy, there are various concrete
facts that must be taken into account in designing a wage policy. Accordingly, in view of the realities
of the situation, there are several hurdles in the formulation of a wage policy in a developing economy
like India’s which adheres in a democratic system. Ideally, wage revision should be higher than the rate
of growth in gross domestic product (GDP) and lower than the rate of inflation. This ensures that real
wages are maintained.

The term “Wage Policy” refers to the legislation or Government action undertaken to regulate the level
or structure of wages or both, for the purpose of achieving specific objectives of social and economic
policy. According to ILO, the wage policy means “legislation or government action calculated to affect
the level or structure of wages, or both for the purpose of attaining specific objectives of social and
economic policy”.

The ILO has enumerated the following objectives of a wage policy in developing countries:

a. To abolish malpractices and abuses in wage payment.

b. To set minimum wages for workers whose bargaining power is weak because they are unorganized
or inefficiently organized, accompanied by separate measures to promote the growth of trade unions
and collective bargaining.

c. To obtain for the workers adjust share in the fruits of economic development, supplemented by
appropriate measures to keep workers’ expenditure on consumption goods in step with available
supplies so as to minimize inflationary pressure.

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d. To bring about a more efficient allocation and utilization of manpower through wage differentials
and, where appropriate, systems of payment by results.

In India, the objectives of a national wage policy may be stated thus:

a. To provide a minimum wages to workers employed in sweated industries.

b. To improve the existing wage-structure.

c. To fix wage ceilings.

d. To accelerate export promotion.

e. To control inflationary tendencies.

f. Other objectives.

a. Provision of Minimum Wages in Sweated Industries:

In a country like India, where in sweated industries employers exploit laborers, the basic need is to
provide for “safety net” – wages to prevent their exploitation. According to Turnover, “the protection
of workers against exploitation or unduly low wages remains the wage policy’s major pre-occupation
in under-developed areas”.

The fixing of a minimum wage is also necessary to boost industrial employment, partly to smooth the
flow of labor from the farm to expanding modem industries; and partly to cover the differentials in
wage rates so that wages paid to employees doing identical work are rationalized. The wage policy
should therefore aim at a minimum wage in sweated occupations as well as a floor for entry to
industrial employment.

b. Improvement in Existing Wage Structure:

A rational wage structure facilitates the acquisition of productive skills, serves as an incentive to higher
productivity and wage income, and encourages the allocation of labor to the expanding sectors of the
economy in which labor is in great demand. Justice and fairness demand that a sound relationship
should exists between rates of pay for different groups in similar occupations.

The jobs that are hazardous or demand a higher degree of skill, training, experience, responsibility,
mental and physical effort should be paid more than the others. According to Clark Kerr, “Improving
worker efficiency and performance, encouraging the acquisition of skills and providing an incentive for
labor mobility should be the real purpose of a wage policy in a developing economy”.

c. Fixation of Wage Ceilings:

Ceilings on wages need to be fixed to save employees from the pinch of the inflationary tendencies that
flow from uncontrolled price rise. The workers should get a just share in the fruits of economic
development and increased productivity. Productivity and efficiency can be boosted by giving
incentives to them and by improving the investment capacity of industries, which can be done when
they plough back a part of the profits in the industry.

d. Acceleration or Export Promotion:

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To get imports of essential capital goods, technical know-how, trained manpower and raw materials,
foreign exchange has to be earned by promoting exports through increased productivity of exportable
goods and price stability or price reduction, wherever possible. A wage policy should help to accelerate
a nation’s developmental process.

e. Control over Inflationary Tendencies:

Controlling inflationary pressures should be an essential element of wage policy, for increasing prices
erode workers’ real income, lower their standard of living, and ultimately cause industrial unrest. A
wage policy should, therefore, aim at stabilizing prices by tying wage increases to productivity.

Other Objectives:

Other objectives of a wage structure are:

i. To bring social justice to workers and equal opportunities of personal development-through the
development of the socialistic pattern of society as laid down in Directive Principles of State Policy in
the Constitution.

ii. To maintain industrial peace, which cannot be achieved only through statutory measures and ban on
strikes and lock-outs and compulsory arbitration.

iii. To provide guidance to various authorities charged with the task of wage fixation and revision.

iv. To develop the skill of newly-recruited industrial labor and other manpower resources.

What is Labor Market?

The labor market or job market is a platform where the demand for (by employers) and supply of (by
workers) employment meet. It assists in creating a skilled workforce that flourishes with competition,
development, and economic expansion. Also, the labor market graph is useful to comprehend its
definition and get information on tight or equilibrium job markets. 

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Please note that the market ascertains labor allocation and its income. The labor demand is inversely
proportional to labor costs, while the labor supply is directly proportional to labor costs. Moreover, it is
a major component of an economic system. 

DIFFERENT TYPE OF LABOUR MARKET (Labor Markets segregation)

In labor markets, labor is supplied by households and demanded by firms. A typical

organization is drawing members from several different labor markets. The labour market

can be divided or segregated in different form, such as-

i) National and local labor markets;

ii) Internal and external labour markets;

iii) Primary and secondary labor markets;

iv) Different sociological labor market;

National and local labor markets

A national labor market is one in which most job search by employers and firms takes place on a
national level. Most job search takes place at a local level in a local labor market. The markets for
college professors, top management positions in large corporations, and similar occupations are
national labor markets. Secretaries, carpenters, truck drivers, electricians, and lathe operators are
employed through local labor markets. A national labor markets exists only when there are few
employers and employees in most geographical regions. Local labor markets exist when there are many
employers and employees in most geographical regions.

Internal and External labor markets

An internal labor market is said to exist within a firm if the firm fills higher level positions in the firm
primarily by promotion from within the firm. Firms often rely on internal labor markets because:

o this reduces hiring and training costs,

o it improves employee morale and motivation, and

o it reduces the effect of uncertainty (since the firm has already observed worker productivity.

Internal labor markets are those where workers are hired into entry level jobs and higher levels are
filled from within. Wages are determined internally and may be quite free of market pressure.

External labor market refers to the market from where company hires an external person to take over a
position within their organization. Examples include some directorships, CEOs, some marketing
positions, consulting and contractual appointment in government services.

External labor markets imply that workers move somewhat fluidly between firms and wages are
determined by some aggregate process where firms do not have significant discretion over wage
setting. Positions are filled by hiring outsiders at all levels of the typical firm.

Many analysts believe that job mobility is limited by institutional factors, external forces limit firms’
ability to set wages. The external forces are likely to reflect both centralized wage bargaining and
market factors that take the form of substitute workers available outside the firm.

Primary and secondary labor markets

Another distinction that is often used to categorize jobs is that between the primary and secondary
labor market. Jobs in the primary labor market are characterized by high wages and stable employment
relationships. Workers employed in the secondary labor market receive low wages and experience
unstable employment relationships. Examples of jobs in the primary labor market include: accountant,
lawyer, teacher, carpenter, and plumber.

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Workers in restaurants, gas station attendants, construction workers, private tutor, short term consultant
etc. are employed in the secondary labor market. While primary labor market jobs have obvious
advantages, the secondary labor market offers job opportunities that would not be available in the
primary labor market to college and university students, adults engaged in extensive child-care
activities, and retired individuals. students are not likely to find primary labor market jobs during
vacations or for part-time work during the academic year. Those adults who are "stuck" in secondary
labor market occupations because of limited job skills and education, however, are not as pleased with
finding their only employment prospects in this sector.

Sociological Division of labour Market

Sociologists study labor markets and occupations in order to show the different expectations of
different occupational groups and the social forces that create these expectations.

Bureaucratic Labor Market:

The bureaucratic labor market is a useful benchmark in comparing sociological labor markets because
bureaucracies are assumed to fill all jobs but the entry one from within the organization. A bureaucracy
is a rationally organized hierarchy of positions designed without reference to the individuals who
occupy the positions. It is insulated from external labor markets because its labor supply is recruited at

the bottom of the hierarchy and promoted from within through training and experience. The labor-
supply problems in bureaucracies involve primarily the individuals it cannot train itself – professionals,
for example. Labor demand is also controlled by the bureaucracy.

Professional Labor Market:

Once it becomes apparent that few organizations can operate as closed bureaucracies, the
characteristics of sociological labor markets from which the organization must recruit members
become important. Perhaps the market that differs the most from the bureaucratic labor market is the
market for professional services. In theory, each professional is unique and the value of his or her
service is immeasurable. Supply is fixed in the short run and may decrease with increased demand if
professional societies increase admission standards. Demand is highly variable. This fixed supply and
varying demand permit professionals to fix their price and determine its basis.

Craft Labor Market:

Next to the professional market, the labor market least within th econtrol of the organization is the craft
labor market. In theory, the labor supply of a craft is fixed and the demand is variable. Identification is
with the craft rather than the employer.

Because fluctuating labor demand and a fixed labor supply could mean fluctuating wages and
aggressive competition, craft unions emerge to distribute work, control labor supply, and bargain the
price. Craft control of the conditions of sale of craft labor serves to preserve the system of selling labor
in standardized units and to prevent the employer from modifying either the system or the
attractiveness of work. The crafts determine the contents of craftwork, decide who is qualified to do it,
and try to collect a standard rate for all levels of it.

Craft markets are essentially local, and craft controls operate locally. This feature of the craft labor
market is the most useful distinction between it and professional labor markets. The building trades,
with their tradition of apprenticeship and often a highly homogeneous membership in terms of ethnic,
racial, and religious backgrounds, represent the best fit with the craft model.

Semiskilled Labor Market:

The market for semiskilled labor, in theory, is a close fit with the bureaucratic model. Labor supply
depends on the local labor force. Demand and competition for workers are determined by employers,
who design the jobs, provide training, and promote from within. In practice, however, many
semiskilled workers are represented by unions, and thus labor supply and wages are determined by
collective bargaining.

Unskilled Labor Market:

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The market for unskilled labor, if such labor is defined as requiring no skill or training, has almost
disappeared. But casual labor is still employed. The supply of unskilled labor is highly variable.
Demand is fairly constant in the long run but highly variable in the short run. Minimum wage laws and
public opinion prohibit the wide range of wages that could be possible in this labor market. The
secondary labor market is analogous to the unskilled labor market

White–Collar Labor Market:

The market for white–collar workers has some similarities to the bureaucratic model. The organization
designs the job, often hires at the bottom, and promotes from within. Workers are typically affiliated
with the employer. But the requirement for impersonal and organizationally rational decisions is no
more likely here than it is with semiskilled workers. In fact, many clerical workers today have jobs
hardly distinguishable from semiskilled factory jobs. They run machines to produce a product, and

their contacts are limited to other employees and supervisors. One possible difference for these workers
is that a good portion of their basic skills are acquired in school.

A second type of white–collar worker – receptionists and salespeople – have contacts with customers
and clients. This seems to be the type that is expanding. Because social interaction is a large part of
these jobs and success or failure depends on the way the interaction is handled, such jobs are difficult
to standardize.

Managerial Labor Market:

The market for managers is the most diverse of the sociological labor markets. In some ways, it is a
close fit with the bureaucratic model.

Affiliation is with the organization, and success is defined by the organization. There is a strong
tendency to hire at the bottom and promote from within. Pay is geared to status in the organization. But
the rational–impersonal dimension of the bureaucratic model is not met, especially at higher levels of
the organization. Although the organization designs low–level managerial jobs, above this level the
manager is expected to have a voice. Like the second type of white–collar worker, managers must
interact with various publics.

Interactions with superiors, peers, and subordinates also influence the definition of managerial work.

Unique Services Labor Market:

Although there is a strong tendency to fill managerial positions by hiring at the bottom and promoting
from within, higher levels of management may be treated as a market for unique services. In such
markets the supply is one individual and the value of the service is difficult to measure. This market is
only partially like the market for free professionals, in that the price is set by individual bargaining.

Sociological analysis of various labor markets emphasizes the different forces operating in each. The
typical large employer deals with all these markets and must reconcile their various forces in designing
compensation policies and programs.

Wage Determination

Wage determination is a complex process.

The steps involved in determining wage rates involves performing job analysis,

wage surveys, analysis of relevant organisational problems, forming wage

structure, framing rules of wage administration, explaining these to employees,

assigning grades and price to each job and paying the guaranteed wage.

The process of determining wages involves a series of interrelated steps.

Wage Determination Process:

The wage determination process includes the following:

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1. Job Analysis:

It involves the identification and precisely identifying the required tasks, the

knowledge and skills necessary for performing them and the conditions under

which they must be performed. It is the basic technical procedure that is used to

define the duties, responsibilities and accountabilities of a job. It involves

determination of methods and equipments used and the skills and attitude required

for successful performance of the job.

2. Job Evaluation:

It is the formal process used to assign wage and salary rates to job. A variety of

systems and products exist to guide this process, each different from the other in

packaging, pricing, philosophy, procedures and utility. It is a systematic technique

determining the worth of a job. Once the worth is determined, it becomes easier to

fix the wage structure that will be fair and remunerative.

3. Conduct the Salary Survey:

Once the process of job evaluation has determined the relative worth of jobs, the

actual amounts to be paid must be determined. This is done by making wage or

salary surveys in the area concerned.

Employers use these surveys in three ways:

(i) They use survey data to price ‘benchmark jobs’, which are usually known as

good indicators on the basis of this, the firm then slots its other jobs, based on their

relative worth to the firm.

(ii) The employers typically price 20% or more of their positions directly in the

market place based on a formal or informal survey of what comparable firms are

paying for comparable jobs.

(iii) The surveys also collect data on benefits like insurance, sick leave and

vacations to provide a basis for decisions regarding employee benefits.

There are various ways to make such a survey. Most firms either use the results of

‘packaged surveys’ available from the research bodies, employers’ association,

Government Labour Bureaus etc. Also many employers use surveys published by

consulting firms or professional associations. Around 200 annual area wage

surveys provide data for a variety of clerical and manual occupations ranging from

secretary to messengers to office clerk.

These surveys may be carried out by mailed questionnaires, telephone, and

personal interviews with other managers and personnel agencies and Internet sites.

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Some of the private consulting or executive recruiting companies are Hay

Associates, Hewitt Associates, Hedrick and Struggles etc. In addition to the

average wage level for specific job, other information frequently requested

includes entry- level and maximum wage rates, shift differentials, overtime pay

practices, vacation and holiday allowances, the number of pay periods and the

length of the normal work-day and work-week.

4. Grouping of Similar Jobs into Similar Grades – Pay Grades:

Once the relative worth of each job is determined, the task of assigning pay rate to

each job is done which is possible only by first grouping jobs into pay grades. It

comprises of jobs of approximately equal nature or importance, as established by

job evaluation. The committee used various techniques for pay grades such as

point method (Job falling within a range of points), Ranking method, where the

grade consists of all jobs that fall within two or three ranks and the classification

method categorises jobs into classes or grades.

5. Preparation of Wage Structure – Wage Curves:

The next step is to determine the wage structure.

For this, several decisions need to be taken, such as:

(a) Whether wage ranges should provide for merit increases or whether there

should be single rates.

(b) Whether the organization pays around above, below or equal to the averages in

the community or industry.

(c) The number and width of the ‘pay grades” and the extent of overlap.

(d) The jobs placed in each of the pay grade and the actual money value to be

assigned to various pay grades.

(e) Differentials between pay plans.

For this purpose, ‘wage curve’ is used to help assign pay rates to each pay grade

(or to each job). It shows the relationship between the value of the job and the

average wage paid for this job. It is a two- dimensional graph on which job

evaluation points for key jobs are plotted against actual amounts paid or against

desired level. It shows pay rates on the vertical axis, and pay grades (in terms of

points) along the horizontal axis.

Principles of Wage Determination

As the major production cost, wages affect profits, business investment, competitiveness, and are a cost
push inflationary factor. As the major income in the economy, wages affect standard of living, income
distribution and poverty, and demand pull inflation.

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At the source of wage disputes is the employer treating wages as their major cost, and the employee
viewing wages as their major income.

The following principles have always been the bases of the wage determination process.

All are economically valid. At different stages they have collectively, and singularly, been used to
determine wage increases.

1. Preserving real income: This is the argument used by employees and Unions viewing wages as an
income. Following this principle usually results in wages being indexed to inflation. In periods of rising
inflation, indexation becomes a problem of an institutionalised wage-price spiral. Underlying aspects
that have also impacted on real wage preservation arguments have been a "basic" minimum wage, and
comparative wage justice.

2. Labour productivity: A valid economic theory connects wages to labour productivity. Conflict arises
over the measurement of productivity. Rewarding labour with a wage increase when technology, and/or
capital investment, increases labour efficiency, may not be justified.

3. The capacity of business to afford wage increases: This emphasises wages as a cost of production,
and the threat of wage increases to squeeze profits. This "capacity" argument is that followed by
business owners.

4. The capacity of the Economy to absorb wage increases: This "capacity" argument views the macro
impact of wage increases on inflation, competitiveness, and other aspects of internal and external
balance; as well as the affect on business profits and investment from 3. This is the main argument of
the Federal Government recognising the macro policy potential of an Incomes Policy to address
external and internal balance goals to supplement demand management policies, and the effects on
income distribution.

External Pay Equity

External Pay Equity is precisely what the name suggests: pay equality compared to the people in
similar positions external to the organizations. This ensures that you have an equal opportunity to hire
the best talent. Without external pay equity, all the applicants would go to the organizations paying
them a standard rate.

When the organization offers equal pay to their prospective employees, they are more likely to revert
this gesture by giving their best to the organization.

However, it should be kept in mind that the standards of payment among the industries may depend on
numerous factors besides the employee’s position. These factors include the location of the business,
the scale of the business, the level of the jobs, the functions that the employee needs to perform, etc.
Due to this reason, the external equity pay can be a little inconsistent.

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Pros Of External Equity: This type of pay equity maintains the competitiveness of the organizations
to get the best talent in the market.

Cons Of External Equity: The only disadvantage is the expenses incurred to maintain this type of pay
equity.

Wage Surveys.

A salary survey is a tool specifically for remuneration specialists and managers to define a fair and
competitive salary for the employees of a company. The survey output is data on
the average or median salary for a specific position, taking into consideration the region, industry,
company size, etc. Input data is aggregated directly from an employer or employee.[1]

Types of salary surveys by data source[edit]

Salary surveys are differentiated based on their data source into those that

obtain data from companies,

obtain data from employees.

Salary survey operators strive to obtain the most relevant input data possible. There is no way to
generalize which approach is correct. The first option may satisfy large companies, while the second is
largely for smaller companies.

Salary surveys based on data from companies[edit]

This is the traditional approach where consulting companies obtain survey input data from specific
companies. Companies are provided with a wide-ranging questionnaire to gather information about the
company and its employees.

Advantages of salary surveys using data from companies[edit]

Long-term experience - these are global companies with long histories in the vast majority of cases.

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Brand recognition - these companies are well-established on the market and have already created a
reputation.

Consulting activities - given that salary surveys are one of the primary lines of business for these
companies, they have consultants on staff who can deliver their consulting expertise in obtaining input
data (ensuring data is aggregated using the correct method) and other more wide-ranging consulting
activities. Such consulting may include job descriptions, evaluating specific jobs and even the creation
of a salary system.

Detailed catalogue of positions - jobs must be assigned to the correct position during the survey to
ensure the compared salary corresponds to the work performed. Positions are described in detail in the
survey given the long-term experience and direct connection to parent companies. The same is true of
responsibilities, powers and subordination, and superiority structures, in addition to the actual job
description itself.

They facilitate international salary comparison - international salary comparisons for individual
positions are possible given that the operators of these salary surveys are companies with international
know-how, and identical methods are applied in dozens of countries around the world.

Disadvantages of salary surveys using data from companies[edit]

Lengthy process of completing the form - time demands are high given the detailed nature of the form
used to obtain input data. The questionnaire includes questions that require answers from multiple
departments: financial (company profits) and human resources (salaries, numbers of employees,
training and education costs, etc.). A company may not answer some questions clearly if it monitors
specific indicators in a different structure and if estimates are provided in the questionnaire, which
deform the results.

Partial coverage of the entire market - the goal of any salary survey is to include all types of
companies, big and small, domestic and foreign, in various industries, etc. Given that only the
companies that buy such a survey are involved, these surveys do not cover the entire labour market.
Often they only include large and wealthy industries such as IT, telecommunications, pharmaceuticals,
banking, cars, electronics, etc. Other industries such as sales, other industry, construction, etc. are
composed of companies that cannot afford such a salary survey, which means their industries are not
completely covered.

Sensitive data - not every company wants to disclose sensitive data on profitability, fluctuations, and
employee salaries in any specific form. Survey participants cannot avoid these questions.

Non-current data - salary surveys based on data from employers aggregate input information over a
matter of months. The standard data aggregation period is 3 to 4 months. Processing follows, which
may take another 2 months. Companies may only receive the data they need after a half-year delay.
The labour market changes over this time, in particular in times of economic growth, and the data is no
longer up-to-date after aggregation, processing and evaluation.

High price - salary surveys based on this approach are expensive. Prices are in the thousands of euros,
depending on if the company is actively involved in the survey or does not participate and only
purchases the survey results (more expensive in this case).

Salary surveys based on data from employees[edit]

Aggregating data from employees, primarily refers to the aggregation of data using the Internet. Such
methods have long been established in the US and Western Europe, and are now establishing
themselves in Central and Eastern Europe, Asia and the Middle East.

Advantages of salary surveys aggregating data from employees[edit]

Large sample of respondents - salaries are of interest to every employee, and providing information
about themselves gives the opportunity to compare their current situation with others on the labour
market. It is no surprise that these types of salary surveys have a large sample of respondents. Surveys
are equipped with technical resources to expose duplicate records, thereby rendering fears of misuse
unjustified.[2]

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All types of companies - employees in all types of companies are interested in salaries, regardless of
the type of work, region, industry, size, company ownership, etc. Such surveys aggregate data from a
multitude of different companies.

Transparency of results - this method provides fast access to the most in-demand information to
support decision-making; the information is also transparently depicted and easy to understand.

Results without providing company data - companies use the results of such surveys without actually
providing their own data. This provides an opportunity to exploit information about the market without
concerns over a loss of sensitive data.

Easy access to the required data - salary surveys of this type are accessible over the Internet.
Companies have access to them anywhere with Internet connection: in offices, cafés, hotels, at home,
etc.

Currentness - data is continuously added to this type of survey; the database is propagated with new
data on a daily basis with old (year-old) data automatically replaced.

Financial accessibility - the survey method based on data from employees does not incur the same costs
as surveys based on data from employers. These surveys are at a much more accessible price point for
this reason. Small and medium enterprises primarily use this type of survey.

Real employee salaries and benefits - surveys based on data from employee are directly connected to
the specific positions in which the employees work. The resulting data describes the situation of a
specific employee and not the general situation in the company. Companies often declare benefits such
as company mobile phones, but in practice an employee may actually only be eligible for such benefit
in select positions and after working for the company for at least one year.

Disadvantages of salary surveys aggregating data from employees[edit]

Temporary mistrust in this method - a lack of confidence occurs in undeveloped countries based on the
argument that "people lie on the Internet". Experience has shown that people do not lie but rather
complete questionnaires accurately if they want to obtain reliable information from a website.
Respondents provide details of their own salary because they are motivated to compare their salary
with others. An attempt to provide misleading information is basically lying to oneself.

Less brand awareness - these salary surveys do not enjoy the same brand recognition as traditional
salary surveys, and companies are only starting to have confidence in their results. Experience from
abroad shows that it is only a matter of time until this type of surveys finds users.

Internet population - this type of survey requires that respondents are computer literate and have
Internet access. This leads to an assumption that the structure of respondents correlates to the structure
of the Internet population. This population has a lower share of employees with lower levels of
education and from smaller communities. This effect is mitigated by the increasing levels of computer
literacy and Internet coverage.

Level of detail of results - survey output data is a reflection of the data provided by the respondents, i.e.
company employees. They cannot be asked specific details concerning remuneration as they are asked
in surveys using data from companies. The average employee does not know how much education and
training activities cost, company revenues, etc. As such, the survey outputs do not provide such
detailed data. They are based on the most basic indicators on which salaries depend: position, region,
industry, previous experience, education, etc. – all questions the respondents can answer.

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