April, 2013 - Riga, Latvia - Evita Lune, Partner & Country Manager for Latvia at Pedersen & Partners, was recently interviewed by “Biznesa Psihologija,” where she engaged in an in-depth conversation on executive salaries.
The theme for this issue of the magazine was “The Great Power of Money,” therefore, staying on topic, Ms. Lune expressed her opinions about defining a fair salary and where the border is when salary moves from a hygiene factor to a motivator. “Often salary does not have a crucial importance for higher level executives, but there is a salary level under which candidates do not come to interviews.” Ms. Lune continued: “if one has to continuously think about money, then he cannot be happy and satisfied. But when all basic needs have been fulfilled then other motivating elements appear, such as atmosphere in the workplace, relationships with clients, and success in general.”
When Ms. Lune was asked, if she feels there are executives that feel under-valued at their companies, Ms. Lune replied; “There are many of them, though mostly the candidates we interview are looking for something new, they want to achieve more or change industries. Of course, there are cases when candidates come with expectations of higher salary, but they do not emphasize that, as companies do not prefer such candidates, because after few months, a salary increase of 20% will not be a good enough motivator.”
“The market in Latvia is rather unsettled when it comes to defining a fair salary.” She explained further that she has met some very talented and successful people who earn less than other, similar executives, with less experience. “The situation is better in large international companies with highly professional HR procedures, but there is still a larger gap between the salary of a General Manager and any other manager that is one level lower.”
In regards to the reductions companies started during the crisis that continue today Ms. Lune commented that “In each company there are key employees whose contribution is greater than others; it is very important to keep the best performing employees, no matter what the circumstances. As for increasing salaries, employers should take into account the situation on the market and within the company, while employees should find a ways to talk about salary and point out their achievements to management.”
“It is all in our hands,” Ms. Lune concludes the interview by explaining “I have often met people of similar ages, opportunities but with radically different careers and achievements. People should never rest with current achievements, they should continue lifelong learning and find their own niche and take full advantage of the opportunities that life gives.”
Written by Elga Zegele for Biznesa Psihologija