When you decide to discuss your paycheck with a fellow co-worker, keep in mind that you might ruin the atmosphere at the office. The one thing that won’t ruin it is equal pay, unless everybody thinks this job is underpaid in the first place. Money has been an object of discussion since one clever mind invented another way of trading some 75.000 years ago, and we do not yet agree. What is it with our money that is so important?
All the differences.
There are many considerations to be accounted for when deciding on a pay settlement; age, experience, efficiency, moral, values, energy and influence are just some of the factors that need to be analyzed. Even if you work at a assembly line or do the absolute exact same work load as a co-worker it still does not qualify for a equal pay. Two people cannot do the exact same job in the exact same way. If one is more important for the good spirit at the floor, she should be rewarded. If one is more on time he should be rewarded. If one is faster, if one is more clever, if one produce with a higher quality it all qualifies for different salaries. There is one pit here, and that is to say, what does it take to make you stay?
Make more money.
Watch out for the need to make more money. All employees do have a value, but make sure that you as a manager set the value on the job done by other factors than the employees need for a positive cash flow. Be careful if you have an employee that says that he does not make enough money to make ends meet. If you increase your wage budget only based on this you will end up getting employees that want to quit all the time, unless they get more money. If you are an employee do not involve your personal economy when asking for a higher salary.
Finding the break-even point.
As an employee you’ll need to find out where your income meets your expenses. When those two are balanced you’ve got your break-even point. The trick is to make sure that you got more income than expenses. There are basically two options here; make more money or cut expenses. I challenge everybody who has a profit to detach themselves from the paycheck. But if you have more expenses than income you are doomed to get in trouble if you do not act. A bigger paycheck might do the magic trick or you need to be happy with a cutback on consume. The keyword here is happy.
Pay Raise or quit your job?
A lot of people might end up with this hard choice. As a manager, if someone asks you for a pay raise, you’ll need to consider productivity, influence, age, long term commitment and experience. If you mean that this person do deserve a higher salary, give it based on these grounds. Is this person to valuable for the company to lose? Or can someone replace her? At what impact? Would other people deserve a pay raise? As an employee you need to know why you should make more money than your co-workers. Start by reading this about true motivation and adding value to you.
Underpaid equals unhappy employees.
If your employees can’t make ends meet, you might be in trouble. Those that do not make ends meet have a lot of focus on this issue, and it drains them from energy. Financial trouble is getting more and more common these days as interest rates are flying high. As a business manager you need to be aware of this as it might suddenly bring down the mood at your office, and you’ll not know why unless you address this problem. Acting as a financial advisor might suddenly become a part of your job. But be careful. Challenge your employees to find solutions that will bring expenses down, but do keep in mind that it might make them unhappy when things get tight.
How does the world’s economic situation impact your job?