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"It's not about the money"

Salaries are Only part of what Makes a Good Compensation Package

Jack Keough, Editor/Associate Publisher -- Industrial Distribution, 5/1/2006

Over the winter, a number of free agent baseball players signed enormous contracts with new teams. It was tiring, as you heard time and time again that the player had signed the contract with a new team, "because his old team disrespected him" (with an outrageous offer of only $8 million a year), and he wasn't doing it for the money.

Bull.

It's always about the money. Just think, in your own personal life when someone tells you, "it's not about the money." Trust me, when you hear that statement, remember one thing: "it's about the money."

Money is the overriding concern when deciding on a job offer. In fact, our annual compensation study (p. 32), shows that 33 percent of the respondents said that higher pay would be the number one reason they would leave their present employer for another company. Salary is important, of course, but a closer examination of the results of this year's study identifies other factors that make employees satisfied with their company and their career choice.

This year, we based our findings on more than 570 responses, making it one of the largest compensation studies we've ever done. We were told that while salaries are an aspect of a good compensation package, other factors, such as job flexibility, benefits, and opportunities for career advancement, are important drivers in job satisfaction.

The study shows that across all job titles, the respondents' average salary, including bonuses and commissions, is $80,000. That's a good salary, and it's not surprising that 86 percent of the respondents said they were "somewhat satisfied" or "very satisfied" with their jobs.

But why else do employees like their jobs so much? Forty-two percent said they liked the work itself, and 7 percent identified the camaraderie that exists between themselves and their colleagues. Salary was a distant third.

What do they like the least about their jobs? Lack of management support was listed by 24 percent of the respondents. That also isn't surprising. A study we did last year of salespeople said their biggest problem was lack of managerial support.

We're also happy to report that 75 percent of the respondents would recommend to others that they pursue a career choice in distribution. We wholeheartedly agree.

jkeough@reedbusiness.com

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