Factors Affecting the Choice of Occupation

Exam code: 2281

Written by: Ashika|Reviewed by: Caroline Carroll|Updated 2 July 2026

Wage factors

Wage factors

The occupational choices of workers are influenced by a range of wage and non-wage factors, which are often held in balance when making decisions about where to work
Wage factors are financial payments that workers receive for their labour
Non-wage factors incorporate a range of influences that are meaningful to a worker

Wage factors that influence occupational choices

Factor	Explanation
Wages	An agreed amount of money per hour E.g., if a student works in a restaurant for 6 hours, 5 days a week and she gets paid $10/hour, her weekly wage is $300 (6x5x$10)
Salary	Employment contracts often state the agreed annual salary the employee will receive This is then divided by 12 and paid monthly (in the USA it is divided by 24 and paid every 2 weeks) The hours worked monthly may vary but the pay received is always the same
Commission	Often used as payment to salespeople It is typically a percentage of the value of the transaction involved, e.g., estate agents receive 3-7% of the selling price of any property they sell This can motivate employees to maximise sales
Bonus	Money paid in addition to a salary and is usually a single annual payment Often paid when the company earns high levels of profits, or as a reward for exceptional worker performance
Piece rate pay	A fixed amount paid to the employee for each completed item produced e.g., 25 Rupees paid to workers in India for each pair of socks they produce
Performance-related pay (PRP)	Payment based on how well the worker performs Workers doing exactly the same job may receive different compensation based on different outcomes they achieve
Share options	Payment through the issuing of shares in the company the employee works for This is usually in addition to a monthly salary The monetary value of the shares provided to the employee can be calculated on any given day as: number of shares x share price

Non-wage factors

Non-wage factors

Many different non-wage factors influence a worker's choice of occupation

Circular diagram of non-wage factors: fringe benefits, education/training length, job security, satisfaction, career prospects, and challenge level. — Non-wage factors that can influence the choice of occupation

Fringe benefits

Benefits provided in addition to a normal salary, such as:
- Childcare
- Free lunches
- Gym membership
- Company car
These can be a significant influence on a person’s choice of occupation

Length of training or level of education required

Longer training or study requirements may discourage people from entering the occupation
Fewer workers are willing to invest the time and cost needed for lengthy qualifications.
- For example, becoming a lawyer usually takes seven years of study and training

Job security

Stability of employment can be an important deciding factor
Some industries offer permanent contracts; others have short‑term contracts (e.g. 1–4 years)
Workers may avoid jobs in industries with high redundancy risk

Job satisfaction (enjoyment of work)

Enjoying work is a major contributor to overall job satisfaction
Workers often change jobs or careers to improve enjoyment and fulfilment

Career prospects

Occupations with clear pathways for promotion and skill development are more attractive
Opportunities for salary increases and advancement encourage workers to stay in or choose certain careers

Level of challenge

Some workers choose roles for the challenge and variety they offer
- For example, firefighters often value the physical and mental challenges of their work

Status

Certain jobs carry high social recognition, which can be appealing.
- For example, doctors, surgeons, and lawyers are often seen as prestigious professions

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