UNIT 17: CHOICE OF

OCCUPATION
 Factors that affect an individual’s choice of occupation
CHOICE OF can be divide into three categories:
OCCUPATION  Wage Factors
 Non-wage factors
 Limiting factors.
 o These include all the earnings a person receives for the job that is being
done.

Earnings: the total pay received by a worker.

1. Wages:

Def.: Can be defined as the standard payment for a worker’s labour.

 In general, the higher the wage rate on offer, the more attractive the
job.

WAGE FACTORS
 Salary is defined as a
payment made on monthly
basis, calculated on the
basis of a fixed annual
Some economists rate.
distinguish between
a salary and a wage.

Wage: a payment made

weekly, based on the number
Note: of hours worked in a week.

Workers can be paid

according to the time they
work – a time rate system. Or
according to the amount their
produce – a piece rate
system.
2. Overtime Pay
 It is normally paid to workers who work in excess of the standard working week. And it is usually paid
at a higher rate.
 Usually, overtime pay attracts individuals who are anxious to increase their pay.
 It can be beneficial both the employees as well as the employers.

3. Bonuses
Def.: Extra payment, normally paid to workers who produce above the standard amount, finish a project
ahead of time, secure a profitable contract or contribute to higher profits in some other way.
 Normally, individuals who welcome challenges and like some sort of competition, are the ones who find
themselves attracted to jobs which pay bonuses.
4. Commission
 It is normally paid to the sales people. It involves individuals receiving a proportion of the value of
sales they make.
 Sometimes it represents an addition to the individual’s standard wage; and sometimes it makes up their
total payment.
NON-WAGE FACTORS

o Wage is not always the main factor influencing an individual’s choice of occupation.
There are other important factors.

1. Job Satisfaction
 Many individuals may overlook low pay when choosing a job, and simply consider the level
of satisfaction (fulfillment) it brings to their lives.
E.g.: Nurses, teachers, firefighters, police officers, babysitters, etc.
2. Type of Work
 Many individuals would rather do non-manual than manual work (and vice-versa). Normally, non-
manual work tend to be both better paid and offer a high status.

3. Working Conditions
 Most individuals would choose to take a low pay job, due to the fact that it may offer a pleasant
surroundings, friendly colleagues and regular breaks.

4. Working Hours
 Some occupations offer workers, the opportunity to work part-time, for instance, 20 hours a week.
 Other occupations offer flexible working hours, where workers alter the hours they work.
E.g.: Nurses, catering staff, factory workers, etc.
5. Holidays
 The longer the length of holiday a particular job offers, the more attractive it will be to individuals.
 Many parents appreciate being on holidays at the same time as their children.

6. Pensions
Def.: Financial help post retirement.
 Major reason why many individuals would choose to work in the public sector.

7. Fringe Benefits
Def.: Extra benefits provided to workers by their employers. These may include free or subsidized meals,
health insurance, leisure facilities, etc.
E.g.: Playing for a major football club, such as FC Barcelona.
8. Job Security
o Security in reference to how easily an individual could be dismissed from the job.
 Individuals normally tend to choose occupations which offer them a high degree of job security.
E.g:

9. Career Prospects
o Many individuals are often willing to accept low wages at the start of their careers, mainly if they
believe there is a good possibility that they will gain promotion to a well paid and interesting post.
E.g.: Trainee accountants, doctors, etc.
10. Size of the Firms
o People are normally attracted to occupations in large firms and organizations. Multinational companies
such as Deloitte, KPMG (consulting companies),etc; tend to receive thousand of applicants yearly.

11. Location
o Individuals tend to choose occupations, which they can undertake close to their home.
LIMITING FACTORS

• These include:
 The individual’s qualifications
 The skills they possess
 Experience
 The place where they live.

The more occupationally mobile and the more geographically mobile people are, the wider
the choice of occupation available to them.