Have you ever wondered what goes into determining how much money you make? Most companies map roles and descriptions with similar organizations using tools like our annual salary guide. But each employer has their own compensation philosophy. Employers consider responsibilities, complexity, importance of the role and market availability, among other components, to arrive at a range for each position. Here are a few other salary factors that determine your pay. Location Wages for employees in the same occupation and position can vary drastically from one state or city to another. This is typically a function of the cost of living.