Average Salary

What Other Factors Affect Salaries?

There's more to salary setting than just industry and region. Loads of different reasons can affect the average UK salary for full-time employees.

Below are some of the key criteria that influence the average wage across the corporate landscape.

Location

It won’t come as a surprise to learn that jobs in London, and other major cities, often command higher salaries than the equivalent positions in smaller cities or towns will.

However, it’s worth remembering that living in a big city, or indeed commuting into one, is very expensive. So, what looks like a great salary on paper, may not necessarily translate to more money in your pocket to spend.

Given the huge rise in home working and the reduced requirement for employees to work from an office, your location may start to have less and less impact on the average salary for your job or industry, but if you work in a physical workplace then it's still a factor to consider.

Age

It doesn't take a genius to work out that as we get older, we gain more and more experience, thus commanding higher salaries.

Recent school leavers entering the world of employment can expect to be some of the lowest paid employees, given their lack of any experience. University leavers can hope to earn more, due to their extensive education.

However, it’s not until we reach our 30s that we start to get into our earning stride, when we have both education and/or qualifications, plus some experience, behind us.

Employees aged 40-49 are some of the best paid as they have, by this age, racked up a good 15 years + experience.

Of course, there are always anomalies, and in some industries, if you're good at your job, you can reach your peak regular pay. Industries such as the financial sector can see employees realise huge earning potential at a young age, but this is generally the exception that proves the rule.

Gender

Whilst the gender pay gap has thankfully narrowed enormously over the last 20 years, sadly there is still a gap between men and women who perform the same job. This isn’t true in every industry and companies are becoming much better at paying a specified salary for a role, regardless of gender.

Still, in some sectors there's still a gender pay gap, so you need to be aware of this when you're negotiating your salary. The best way to understand if you're getting paid less than the average wage because of your gender is to communicate with your colleagues and be open about how much you make. You can then find out if your salary is lower simply because of your gender, then discuss it with your boss to ensure that you get paid a fair wage.

Skillsets / Education

As we touched on above, the more qualifications you have, or the more educated you are, then usually, the more you can expect to earn. Having a relevant degree for your industry may well be a prerequisite, or it may serve to enhance your CV and put you ahead of the competition.

Ensuring your skills are kept up to date and relevant should also ensure you maximise your earning potential. One of the most effective ways to ensure your salary increases steadily as you get older is to specialise within your industry. Having a ‘niche’ skillset will improve your salary prospects.

Occupation / Industry

Different industries will have different requirements when it comes to education and skills. Clearly, a job within the medical profession or in the legal industry will have very comprehensive requirements for job-seekers. However, a position within the retail industry may require a can-do attitude and good people skills rather than qualifications.

Certain industries like Construction, Energy, Information Technology and Digital Marketing have seen a boom over the last few years, so working in one of these growth areas may also provide you with the potential for higher earnings.