Video Interview: The importance of salary within your career

11/21/2018 The Pay Index

Interview between James Rust, Managing Director and Founder Partner of The Pay Index, and Anthony Harling, Founder and Director of Not Actively Looking, discussing the importance of salary within the different stages of your career.


Anthony:

How do you see the importance of salary changing as we go through the different stages of our careers?

James:

Salary is paramount at the beginning of your career – the importance of paying off student loans, getting on the housing ladder etc.

As you become more experienced it can play a lesser role – especially towards the latter part of your career when your fixed costs are lower.

However, you can never ignore it, especially as bonus is often paid in relation to salary.

But you will find that over time salary levels will cap out, so when you reach a salary ceiling the only way to continue to increase earnings is to look at the bonus element of your package.

Anthony:

How does compensation tend to look at the mid-stage of a career?

James:

That mid-stage is a crucial period of your career and should provide you with the platform to maximise your earnings throughout the second half of your career.

However, much will depend upon the relative maturity of the company you are working for; some businesses may offer you a part of an IPO, whilst others may even pay you in Bitcoin!

Anthony:

Are there times when salary should not be the primary driving force behind a potential career move?

James:

Absolutely. Any career move should be primarily driven by whether the company you are moving to has the ability to further your career, in the broadest possible sense.

Some moves may offer a short-term rise in salary, but may not offer long-term career opportunities. It is important to ask these questions before considering a move.

It’s important to assess the overall package: is work/life balance and flexible working important to you, is skill development important to you. Factors such as these can be more important than salary.

In summary, salary is one very important factor, but definitely should not be the only factor that drives a career move.

Learn more about Not Actively Looking via the following links below: