Sin-Yaw Wang: A Theory in Compensation
Learning new skills pays off
Sin-Yaw Wang put up a nice Theory in Compensation:
Your earned pay reflects the improvements of your skills. Companies do this in a zig-zag way: sometime over-paying and sometime under. The gap between these two lines cannot be too wide for too long. Either you will find a new job that pays your market rate, or the company will fire you for not giving your money's worth.
He concludes:
Ask first, when you are thinking of a new job, if you will be learning new skills. Don't ask if it pays better. You compensation will keep up with your skills, sooner or later. If you are not learning new skills, then you are simply being harvested.
Well said. I guess many companies out there just find it easier to pay more than to make sure their employees gain a real chance to develop their skills.
My experience is that even if they deploy formal processes for career planning, they often miss the point in what really matters to increase the value of their employees.
References
- Sin-Yaw Wang: A Theory in Compensation