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Kamaldeep
25 April, 2024
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Understanding the idea of the average salaries in any industry is necessary for both such as employees and employers. It’s very important for the employer to determine the average salary of every employee in his industry.
It is helpful to make the budget of the industry, to buy the remittance for the industry, and also helps us to decide the salary of the new employer. Calculating the average salary of any industry requires full attention for data collection and analysis of the budget of the industry.
In this blog, We will provide a complete guide to calculate the average salaries of employees in any industry with detailed steps.
Calculating average salaries can be a complex task for employers and administrative teams. This guide simplifies the process, ensuring you can determine mean salaries with ease.
Step 1: Collect Salary Data of Industry
In collecting the data of the industries there are multiple resources/departments where employees serve their duties. In the collection of the salary data make sure to collect the complete data of the salary of each employee of the whole industry from all departments such as HR department employees, internal affairs department employees, treasure department employees, etc.
Step 2: Compare and Analyze the Data
After collecting the data of the whole industry then compares the salaries of each employee with its duties hours, its working nature or time taken for completion of tasks, and also its designation. Also, take in mind one more important thing experience of the employees.
Step 3: Arrange the Data in Ascending Order
After collecting the data, arrange all data from least to greatest number for the ease of handling the complex and highest numbers of data.
Step 4: Calculate the Average Salary
Calculate the average salary by dividing the sum of all salaries by the total number of employees.
Its mathematical form can be stated as,
Average Salary = (Sum of all salaries) ÷ (Total number of salaries)
Average salary is also known as the mean salary/usual salary of the industry for new employees according to their designation and experience.
Here we provide mathematical examples to find the mean salary from the whole data of the industry with its complete steps by using some mathematical techniques to determine the complete value.
Find the Average salary of the industry while an annual sum of the salary of “76” employees working in the industry is “3,195,000 $”.
Solution:
Step 1:
Write the data from the given question.
Sum of salaries = 3,195,000 $,
total number of employees = 76
Step 2:
Put the values in the formula of mean salary.
Average salary = 3,195,000/76
Average salary = 42039.47 $
Find the Average salary of the employees having monthly salaries 2500$, 2700$, 2800$, 3000$, 3500$, and 4000$.
Solution:
Step 1:
Write the data from the given question.
Sum of salaries = 2500$ + 2700$ + 2800$ + 3000$ + 3500$ + 4000$ = 18500$
total number of employees = 6
Step 2:
Put the values in the formula of mean salary.
Average salary = 18500$/6
Average salary = 3083.33$
You can simply use an average calculator to quickly find the average of the given salaries.
Find the Average salary of the industry while the data of the industry are given in the table below.
| Grade | Annual Salary (one Person) | Number of Employees |
|
1 |
$20,000 |
10 |
|
2 |
$25,000 |
25 |
|
3 |
$30,000 |
22 |
|
4 |
$50,000 |
7 |
|
5 |
$80,000 |
4 |
Solution:
Step 1:
Find the total number of employees by adding the number of employees working in the industry.
Total number of employees = 10 + 25 + 22 + 7 + 4 = 68
Step 2:
Determine the sum of salaries with respect to the number of employees working on the same amount of salary.
It is found by multiplying the annual salary by the total number of employees.
Total salary of 10 employees = 10 × 20,000 = 200,000 $
Total salary of 25 employees = 25 × 25,000 = 625,000 $
Total salary of 22 employees = 22 × 30,000 = 660,000 $
Total salary of 7 employees = 7 × 50,000 = 350,000 $
Total salary of 4 employees = 4 × 80,000 = 320,000 $
Step 3:
Now, find the sum of all salaries by adding all the above salaries.
Sum of salaries = 200,000 + 625,000 + 660,000 + 350,000 + 320,000 = 2,155,000 $
Step 4:
Put all the above values in the average salary formula.
Sum of salaries = 2155000, total employees = 68
Average salary = sum of all salaries/total number of salaries(employees) = 2155000/68
Average salary = 31691.18 $
This guide provides a framework for calculating average salaries, but remember, salary is not the only factor to consider when evaluating a job offer or a company’s compensation plan. I hope by reading this article everyone can find the average salary of any industry.
