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In the private sector, your salary comes from revenue, and your ability to negotiate your salary, that is, your leverage, comes from the impact you can have on
by geocar 7y ago
In the private sector, your salary comes from revenue, and your ability to negotiate your salary, that is, your leverage, comes from the impact you can have on that revenue.
In government, your salary comes from taxes, or absent sufficient tax revenue, from inflation (i.e. the government just prints more money).
- codingslave 7y agoThis is often a lie. It's common for revenue generators to make as low as the company will pay them, and management who is producing little value to extract the wealth
- geocar 7y agoJust because you make the donuts doesn't necessarily mean you're responsible for Dunkin' Donuts revenue: If I (management) can hire someone else to make as many donuts as you for less, then of course I will. That means you have little leverage to negotiate a higher salary. However if I can open and hire for ten donut shops per year, I've got their combined revenue as leverage for negotiating my salary. I'm not competing with you, but with my fellow executive who can only open and hire for six per year. What do you think the analogue is for government work?