How Business Decide What to Pay Their Employees

Updated on June 3, 2020

Now more than ever, the workforce is getting sizably more competitive with employers looking for highly capable employees that will ultimately bring benefits to the company. Hiring new employees is a time-consuming and expensive process for most businesses. Paying employees comes at a large expense, so it is important for businesses to ensure they are hiring the right person.

One aspect that holds high importance is an academic degree, which can allow a person to start at a higher level in the company right from the start. Although this holds high importance, there are other factors that are just as if not more important including experience, long-term potential, and skills.

With the majority of high school graduates continuing their education to receive academic degrees, it is becoming increasingly evident that having a degree largely increases the potential for getting hired. Of course, having a degree, in general, will add extra qualifications to the job application, it is important to consider which degrees hold higher significance for certain jobs.

If wanting to get hired in a company involving research, the company will seek staff with scientific degrees. In this instance, for example, a neuroscience major has more weight than an English major.

Often, computer science majors end up being the most sought after by companies because of the versatility and potential that this skill brings to the company. Marketing is also highly sought after by companies because it enables their business to grow through branding and targeting specific demographics to encourage growth. The importance of an academic degree is ultimately determined by the skill set needed for the company.

Although academic degrees are an important aspect when looking to get hired, there are other factors that employers look for that are just as, if not more important. Employers looking to hire someone with a certain skills often look at the experience of the applicant to see if their previous line of work matches the work required for a certain position. In fact, according to the NACE’s job outlook 2017 survey, 91% of employers stated that they prefer candidates to have had work experience. This experience can include co-ops, internships, or positions at past jobs. To employers, work experience shows that the applicant has a general business awareness and job-specific skills.

Not surprisingly, employers seek candidates that show long-term potential, and dependability. When an employee leaves or is fired, it disrupts the work environment, and the company has to seek a new candidate, which as previously mentioned, is expensive and time-consuming.

Employers also look for applicants that display traits such as hard-working, optimistic, curious, and a knack for problem-solving. Oftentimes in an interview, the employer will look to see if the candidate is able to speak succinctly, and easily get the point across. It is important that employees are able to effectively communicate to alleviate confusion and solve problems.

Sometimes, the employer will ask to share a certain experience, and if the candidate is able to keep the subject simple and engaging, it will make the candidate stand out.

Agility is another important trait that companies seek when hiring. Making important decisions on the fly is an important aspect of many companies, so employers will often ask the candidate what he or she would do in certain scenarios. It is crucial to give answers that will end up benefiting the company and falling in line with their values.

Overall, jobs look for many traits when hiring and it is important to be prepared to take all of this into consideration before applying for a job. Academics qualifications are important, but solely relying on that to get hired for a job won’t cut it. Employers want to see experience, skillset, dependability, and personality as well.

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