By Shuki Stauber
Regarding how pay levels are determined, large companies generally have a pay policy and pay scales for various professions according to the type of job and the skills needed to carry it out. For instance, the pay scale for a senior software engineer can be NIS 12,000-15,000. A salary beyond this range is only given in isolated cases, e.g. if the company wants to hire someone with unique skills or an exceptional reputation, and it generally requires obtaining approval from the board of directors. Within this range the salary level is affected by a variety of factors: the negotiating abilities of the job candidate and the person doing the hiring, the way the job candidate sells himself and of course how urgent it is for the company to fill the job quickly.
At well-organized workplaces where employees are represented by workers’ organizations that discuss salary level with the management, the base salary is set primarily through collective negotiations. At such workplaces seniority also carries weight. Considering seniority a significant element in setting salary rates has also penetrated companies that don’t have unions both because it’s a longstanding tradition that has taken root in the Israel job market and because of the assumption that with seniority comes experience, so the employee’s skills improve.
At well-organized workplaces where employees are represented by workers’ organizations that discuss salary level with the management, the base salary is set primarily through collective negotiations. At such workplaces seniority also carries weight. Considering seniority a significant element in setting salary rates has also penetrated companies that don’t have unions both because it’s a longstanding tradition that has taken root in the Israel job market and because of the assumption that with seniority comes experience, so the employee’s skills improve.
In certain cases the pay policy can differ from one group of workers to the next. For example, if an organization draws a distinction between what it views as core skills and other types of work. A communications company, for example, might determine that the minimum salary for its high-tech experts would be higher than the average monthly salary in the job market, while the salary for customer service workers would be about the same as the average monthly wage.
Another organization might decide to pay bonuses only to workers in certain fields, e.g. if that year a gap formed between the average wages at the company in this field and the average wages for that field in the market for that same field of enterprise. For example, in the 1990s, when the large wave of immigration arrived from the FSU and drove a massive wave of construction across the country, real-estate companies were finding it difficult to hire a construction engineer. As a result of rising demand their pay went up accordingly. A similar phenomenon occurred in the high-tech market during the same period, when programmers were in high demand. When the bubble burst at the beginning of the present decade many projects were shut down and their pay decreased substantially.
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