In a recent lawsuit in Amsterdam, a verdict was reached that an employer may not halve an employee’s salary because of the coronavirus crisis. The employer in question had done so because the compensation received through the NOW scheme was too low to pay the full salary.
The employer involved in the lawsuit, who runs a restaurant in Amsterdam, found himself in financial trouble as a result of the coronavirus crisis. In March, he applied for compensation through the NOW scheme and received 60% of the wage bill of January 2020 as monthly compensation. He responded by paying all of his employees 50% of their salary. During the lawsuit, one of his employees demanded the employer paid all of the overdue salary. The judge acknowledged that the exceptional circumstances were cause for unforeseen economic emergency action, but nonetheless proceeded to compel the employer to pay the overdue salary until the termination of the employee’s (temporary) contract.
New employees lead to payment problems
The restaurant is primarily dependent on tourists and therefore saw hardly any business in January and February. The arrival of tourists in March would under normal circumstances have signalled the start of a more lucrative period. For this...
Last year, the news buzzed with articles about economic discrimination between women and men. The Dutch News Broadcast NOS wrote a short article on why women are less successful when it comes down to salary negotiations. According to the article, women use insecure language more often; they downplay their own qualities and results; they have less confidence during the negotiations.
The article used the discrepancy between the salary of men and women as its topic to focus on the pitfalls of women, but it applies to anyone who wishes to tackle their salary. When it comes to negotiating, it is important to be prepared. Without decent preparations, the outcome will be poor, or worse, the impression made will not be one in your favour.
Check your market value
First, it is important to determine what the average salary of the potential job you seek might be. Sometimes, the job description gives an indication, but this is not always the case. To get an impression what the job will pay, check the company’s CAO. The major trade unions often provide these.
Unfortunately, not all companies have a CAO, when this is the case some additional research is necessary. The...
Determining how much you are worth in your profession is often a difficult question, especially in industries where there are no fixed salary scales. For such industries, the amount you earn is largely based on negotiations between you and your employer. Here employers often have the advantage of experience, and it can be a daunting task to go up against them as a starter, without the knowledge of how you can get the salary you deserve.
The first thing you should do to determine how much you are worth is to carry out some research. Salary calculators are a dime a dozen, and the best ones take into account your position, employment history, and skill set. Some examples include Payscale, LiveCareer, and Salary.com. Every industry has its specific desired set of skills and experience which are necessary in order to fill certain roles. Your worth depends on how well you can put a price on each of these.
Although salary calculators are useful, they are limited in the sense that the range they offer is rather broad. How to determine where in the range to place yourself is an open question. You should factor in your experience in this situation....
The debate about whether money can buy you happiness is an old one, and the answer (if indeed, there is one) to a large extent depends upon the person asking the question. Most people probably want to be in a job which pays well. But at what point does the size of your paycheck no longer result in a greater feeling of happiness? Recent studies offer some clues.
One of the most widely cited of such studies was done by the Scottish-American Nobel Prize winning economist Angus Deaton, in a 2010 paper (with Daniel Kahneman) which looked at the relationship between income and wellbeing. In the paper they distinguished between two types of subjective well-being. The first concerned the emotional quality of the day-to-day life of an individual. The second was concerned with what he termed “life evaluation”: the general view that people have on their life when they stop to consider it. They found that a high salary improves people’s positive analysis in the latter case, but not in the former case. Furthermore, they did find a correlation between income and happiness, but only up to about $75,000 (€61,000).
Whatever study you cite it is clear that, while having...
You are looking forward to start working or you are currently working, but do not feel at ease and want a job change. What should you search for? Generally speaking, motivation to look for a particular kind of job depends on each individual, but we can agree on the fact that a decent salary, the one that supports your personal lifestyle and includes social benefits and holidays, would be the basis to start thinking about a company. However, this is far from being the most important and only issue to consider.
When you are looking for your first job, or a job change, key questions to ask yourself and investigate within a company are, for example: What activities are you truly passionate about? What are your ambitions? Do you see a clear career path for you in a given organization? Will they help you be more marketable by exposing you to a diversity of roles and responsibilities? Are they willing to support you with ongoing education? These questions prioritize the focus of the search on your personal growth and development, and whether valuable skills and experience can be acquired and deepened throughout your working life.
But targeting the right place...
Successful companies are starting to realise that increasing wages can help to increase profits and growth by boosting productivity; companies such as Costco, a US warehouse company, have seen a rise in profits compared to its competitors, and they owe their success to increased employee morale through better pay. However, as an employee, it can be difficult to persuade employers that you deserve more money when the company grows. Even if your argument is that employees hard work should be rewarded and it would help further boost working incentives.
When a company’s success can be confidently attributed to one’s hard work, then it is a reasonable request to ask for a raise based on self-value. For example, if someone works in sales and has had a successful sales year, which he or she feels has benefited the company, then they should quote their figures and how their work has influenced the company’s success. In other words, it is best to negotiate a salary that reflects one’s value within a company. To do this sufficiently requires researching a reasonable salary compared to what rival companies provide, and to explore the salary range within an industry.
Another factor is if a company’s...
After years of wage moderation, it must be over, thinks the trade union movement. Companies make healthy profits and benefit from their employees. Prior to Prince’s Day, the unions traditionally establish their wages. By 2018 there must be a minimum of 3.5% higher wages.
The FNV (The Netherlands Trade Union Confederation), the Dutch largest trade union, will set the next decade for a minimum wage of 3.5%. People who earn little can even get up to 5%, because FNV also demands that everybody would get a minimum of 1000 euros a year extra. Trade union CNV (Christian Trade Union Federation) is usually somewhat moderate with wage demands. But CNV professionals also set for wage increases of 3 to 4% per year or 10% for three-year period.
FNV Job Coordinator Zakaria Boufangacha argues that real-time investment needs to be invested in workers. "It's going to be economically good and the majority of businesses deserve good money, but it's getting less and less crowded. We therefore want to catch up, so that workers get more fair profit."
According to FNV, the Dutch labour market has ended in a race. Competition on labour prices is huge and workers pay the bill. Wages...
It is almost a given that when offered a pay rise, you should accept it. Indeed, it would appear to be madness to reject it. After all, why would anyone refuse to have more money at the end of the month? However, there are some situations where it might be sensible to refuse a wage increase. For instance, there might be a situation in which the amount offered is so low that it is taken as insulting. Another example could involve an offer in which you are made to take on more responsibilities than are worth the increase in pay. Whatever the reason, it is best not to make a rash decision.
One of the main reasons to turn down a pay rise is if the offer is much too low to justify the increase in responsibilities. If you feel like you will have much more work to do without the commensurate increase in pay, then you should think about turning down the offer. Another reason is that having a disproportionately high salary for your job title can mean that you are more likely to be laid off during an economic downturn. There are anecdotal cases of corporate lawyers being...
You have finally done it. After many searches and applications, difficult interviews with questions like: ‘Would you choose this job over your own biological mother?’ you have finally reached the end of your long journey and received a job offer.
However, after straining through all the fine print and the listed salary, you have to wonder to yourself: ‘How much is my job worth?’ The offer has been made, the hiring manager is interested, and now the ball is in your court. What is the next step? Negotiation.
Many online resources have cropped up recently to help gauge your price on the market. In one of the most popular, Payscale.com, you can search your job title and compare your offered job salary to that of employees that have anonymously reported their earnings and bonuses, according to their location and years of experience. Other options include WageIndicator.org, which shows the median monthly salary by country for different jobs, with other relevant demographics such as the age and sex distribution of employees. For more specialised insider information, Glassdoor.nl may offer you valuable insights into the company you are about to join from anonymous staff and interviewed candidates.
If you want...
If there is something Dutch people are good at, it is at combining work and free time, and being able to enjoy both. The Dutch work the least hours of any other nation in the European Union. The average number of working hours of other countries in Europe is 37.5 hours a week. In the Netherlands, by comparison, Dutch people work an average of 30.6 hours per week, which results in 364 hours less in a year.
We could go even further and compare those working hours to other countries around the globe. The people in North America work on average 44 to 52 hours per week, and an average American works up to 25% more than an average European citizen. Nevertheless, this does not affect the productivity of the Dutch; in fact the Netherlands is the fifth most productive country in the world, according to rankings by Business Insider in 2016.
The reason is that the Dutch economy is especially flexible, and it allows for such a type of workforce. Working hours in the Netherlands for a full-time (voltijd) job are between 36-40 hours a week. If someone works less than 36 hours, but more than 12 hours, they...
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