3 Factors That Can Determine Your Earning Power in Any Career.
Most of us are led to believe that the higher our level of education, the higher our income will be. While it's true that academic qualifications are very important, it does not determine your earning potential. In this century, there is no longer the case where a long service employee gets paid between $2000 to $5000 more than a 22 year old graduate. It is also not uncommon for a 32 year old to earn 2 to 3 more than his 45 year old colleague who has the same qualification and 13 years more experience.
So what can you do to increase your earning power? There are 3 factors that differentiate you from the other replaceable employees.
Factor 1: Time
One thing we all know is that time is money. Question is how do you apply this concept in your career? Time here does not necessarily mean putting in 24 hours of work in a day. What it means is spending more of your time only on activities that creates the greatest value, thus generating more profits for your company. Most employees spend their work hours doing things that do not create value. An example would be checking of emails. Data entry, filing of paperwork, chit chatting, waiting, complaining and researching on materials are also things that do nothing to help the company generate more profits. As much as possible, these things should be done after office hours. The hours of 9am to 6pm are the most critical. It is the time that must be optimized and when your actions should be generating high profits. This is when you should be spending your time doing things that are productive like closing sales, generating leads, implementing new business developments, market strategizing, follow-up on clients, etc. We all get the same amount of 24 hours a day. It is how smart you are at tasking your time that makes all the difference.
Factor 2: Value
Creating value is doing a lot more than what is expected of you. Most of you as employees do exactly as you are expected. While there is nothing wrong with this, it does not make you a valuable asset to the company. As an example, let's look at the job scope of an administrative assistant. Employee 1 is required to do data entry, filing, maintain proper circulation of forms, answering phone-calls, stock replenishment and maintaining general housekeeping. She does exactly what is expected of her as stated in her job scope. Employee 2 is given the same job scope but puts in a lot more value on top of what is expected of her. Besides maintaining proper forms circulation, she comes up with new forms, designs them herself and suggests useful modifications that would facilitate the company's work flow system. She helps the company to save cost by sourcing for reliable office suppliers that can offer cheaper rates without compromising quality. Instead of just answering phone calls, she goes all out to help clients with their enquiries, giving them an experience no other company can give, thus, converting them into long term clients. Long term clients are very vital to the success of a company. If these clients are happy with the service of the company, they will most likely recommend their friends through word of mouth. The company gets more leads without spending money on expensive advertisements. It also means higher conversion and higher profits. She makes cold-calls and follow-up on existing clients on a constant basis, although she knows that this is something which is not within her job scope. Apart from putting in more value into her job scope she also comes up with new ideas to create more value. She comes up with her own set of marketing proposals on how to increase sales. After typing them out, she prints and files them and presents it to the Director. There is a good chance that one of her proposal may be good enough to be used by the company. If this happens she can request to work together with the marketing team to execute the plan. If she continues her pace, the company can easily see a significant increase in gross profit. Always upgrade your skills, adopt a proactive mindset and do things to create high value. We are all capable of creating value for ourselves and the company we work for. All it takes is a bit of thinking and taking action on our ideas.
Factor 3: Likability
This factor is often overlooked. You should always be conscious of the impression you exude to others. If you are arrogant, selfish and self-centered, you will not get too far even if you are the most capable person. When I was in school, I was part of the Military Band and English Cultural Club. Because of my hectic schedule in the Military Band, I missed a lot of practices for the English Cultural Club. Despite my poor attendance, I actually got picked to be a secretary in the committee. The decision was determined by some of the senior members in the club. I did not understand how I was picked but it dawned on me that my likability factor played an influence in their decision. I was also chosen as the Band Major in my final year with the support of my teacher and a lot of my friends. I'm not saying being liked is enough but it is one of the factors that puts you at an advantage. Likability applies to everything from your social life to the real working. How do you make yourself more likeable to others? A great way to start is to smile more often. Frowning makes you less approachable. Make a point to greet your colleagues each time you see them. Be genuine. People can tell between a good morning' just for the sake of saying it and a good morning' like you really mean it. Work on being a people person. Be nice to everyone and treat them with respect regardless of age, experience or intellectual level. You never know who will help you climb up the corporate ladder and put in a good word for you.
Once you have mastered these 3 factors, you can be confident of asking for a double pay raise when the time comes. If you have created such high value for the company, there is no reason why you do not deserve a higher income. Individuals who posses these factors are highly sought after in many companies which are willing to pay them well. After all, the meager increase in income is nothing compared to the high profits they would create for the company in the long run.
So what can you do to increase your earning power? There are 3 factors that differentiate you from the other replaceable employees.
Factor 1: Time
One thing we all know is that time is money. Question is how do you apply this concept in your career? Time here does not necessarily mean putting in 24 hours of work in a day. What it means is spending more of your time only on activities that creates the greatest value, thus generating more profits for your company. Most employees spend their work hours doing things that do not create value. An example would be checking of emails. Data entry, filing of paperwork, chit chatting, waiting, complaining and researching on materials are also things that do nothing to help the company generate more profits. As much as possible, these things should be done after office hours. The hours of 9am to 6pm are the most critical. It is the time that must be optimized and when your actions should be generating high profits. This is when you should be spending your time doing things that are productive like closing sales, generating leads, implementing new business developments, market strategizing, follow-up on clients, etc. We all get the same amount of 24 hours a day. It is how smart you are at tasking your time that makes all the difference.
Factor 2: Value
Creating value is doing a lot more than what is expected of you. Most of you as employees do exactly as you are expected. While there is nothing wrong with this, it does not make you a valuable asset to the company. As an example, let's look at the job scope of an administrative assistant. Employee 1 is required to do data entry, filing, maintain proper circulation of forms, answering phone-calls, stock replenishment and maintaining general housekeeping. She does exactly what is expected of her as stated in her job scope. Employee 2 is given the same job scope but puts in a lot more value on top of what is expected of her. Besides maintaining proper forms circulation, she comes up with new forms, designs them herself and suggests useful modifications that would facilitate the company's work flow system. She helps the company to save cost by sourcing for reliable office suppliers that can offer cheaper rates without compromising quality. Instead of just answering phone calls, she goes all out to help clients with their enquiries, giving them an experience no other company can give, thus, converting them into long term clients. Long term clients are very vital to the success of a company. If these clients are happy with the service of the company, they will most likely recommend their friends through word of mouth. The company gets more leads without spending money on expensive advertisements. It also means higher conversion and higher profits. She makes cold-calls and follow-up on existing clients on a constant basis, although she knows that this is something which is not within her job scope. Apart from putting in more value into her job scope she also comes up with new ideas to create more value. She comes up with her own set of marketing proposals on how to increase sales. After typing them out, she prints and files them and presents it to the Director. There is a good chance that one of her proposal may be good enough to be used by the company. If this happens she can request to work together with the marketing team to execute the plan. If she continues her pace, the company can easily see a significant increase in gross profit. Always upgrade your skills, adopt a proactive mindset and do things to create high value. We are all capable of creating value for ourselves and the company we work for. All it takes is a bit of thinking and taking action on our ideas.
Factor 3: Likability
This factor is often overlooked. You should always be conscious of the impression you exude to others. If you are arrogant, selfish and self-centered, you will not get too far even if you are the most capable person. When I was in school, I was part of the Military Band and English Cultural Club. Because of my hectic schedule in the Military Band, I missed a lot of practices for the English Cultural Club. Despite my poor attendance, I actually got picked to be a secretary in the committee. The decision was determined by some of the senior members in the club. I did not understand how I was picked but it dawned on me that my likability factor played an influence in their decision. I was also chosen as the Band Major in my final year with the support of my teacher and a lot of my friends. I'm not saying being liked is enough but it is one of the factors that puts you at an advantage. Likability applies to everything from your social life to the real working. How do you make yourself more likeable to others? A great way to start is to smile more often. Frowning makes you less approachable. Make a point to greet your colleagues each time you see them. Be genuine. People can tell between a good morning' just for the sake of saying it and a good morning' like you really mean it. Work on being a people person. Be nice to everyone and treat them with respect regardless of age, experience or intellectual level. You never know who will help you climb up the corporate ladder and put in a good word for you.
Once you have mastered these 3 factors, you can be confident of asking for a double pay raise when the time comes. If you have created such high value for the company, there is no reason why you do not deserve a higher income. Individuals who posses these factors are highly sought after in many companies which are willing to pay them well. After all, the meager increase in income is nothing compared to the high profits they would create for the company in the long run.
