Should Core Operations Staff Earn More Than Their Peers in Other Departments?

Is It Right for Core Operations Staff to Earn More?

Is it right for staff in the core operation of a business to earn more than other staff in other departments? For example, in a software business solutions company, is it right for software developers and analysts to earn more than HR professionals or accountants who are on the same level?

Earnings, or rather more accurately, remunerations, are entirely governed by the perceived value of the individual to the company and market forces. Also, one has to consider the potential of the employee to generate revenue for the company; a software developer, by the nature of their work, will earn profits while an HR professional or accountant will be a cost to the company. This cost is met by the work of the developer.

The only exception is the owner; their earnings are whatever is left over after all costs are met. Sometimes these can be high and sometimes very low, if not nil; but that is the risk the owner takes for their investment. Therefore, I ask you to reconsider your own question.

Regards,
Harsh

Of course, this is a basic concept. Generally, organizations are based on two functions: key functions (sales, marketing, operations, production, etc.) and support functions (accounts, HR, admin, IT, etc.).

Business naturally runs on key functions to earn money. Therefore, if you observe, many senior management personnel are more focused on key functions rather than support functions, except for accounts or finance, as they can gather information from them about the financial health of the organization. This helps them in making investment decisions. However, this investment is not blind; it is a smart investment. If they provide higher salaries to sales and marketing, they can achieve targeted business goals. Have you ever seen any business setting targets for HR, admin, or IT? Obviously not.

Where to Focus and Invest in Business

My simple question for you is: if you were to start your own business, where would you focus and invest more? I believe that focusing on sales and operations is essential for growing a business, at least initially.

I hope this helps clarify the importance of different functions in organizations.

Best regards

Of course, this is a basic concept. Generally, organizations are based on two functions: key functions (sales, marketing, operation, production, etc.) and support functions (accounts, HR, Admin, IT, etc.).

So, businesses naturally run on key functions to earn money. If you see, many senior management people are more focused on key functions rather than support, except for accounting or finance, as they can get a clear picture from them about the financial health of the organization. Therefore, they want to invest, but the investment is not blind; it is a smart investment. If they provide higher salaries to sales and marketing, they set targets for the business as well. Have you ever seen any business target for HR, Admin, accounting, or IT? Obviously not.

My simple question for you is, if you were to start your own business, where would you focus more and invest? I believe definitely in sales and operations for growing the business, at least.

I hope this helps clarify the importance of focusing on key functions for business growth.

Best regards

As an Admin & HR Manager, I would like to convey my simple message to you. There are two things - Billable and Non-billable. Admin, HR, and Account people are non-billable; others are billable employees. They earn for the company, which is why they are paid more than non-billable employees.

With regards,
Bapi Mondal

Dear Bapi, whatever concept you are talking about regarding "Billable & Non-billable" is used in Contract Staff Management or staffing services. Here we are discussing a general concept.

I am inclined to think that the questioner should reconsider his question, as pointed out by Mr. Harsh Shukla. When you yourself have added an element of distinction to the so-called section of the personnel by using the adjective "core" before their function in the business venture, what's the use of lamentation regarding disparity in compensation? There can be no comparison among the incomparables.