Can an Employee Ever be Paid Enough?

Job strikes, bargaining for a better wage, salary negotiations, labor union calls for action, and more; these are all headlines or topics that have been there ever since there was an employer and an employee. It might not end anytime soon and certainly might never end. The question I began to wonder about was  “Can an Employee Ever be Paid Enough“. Can we ever come to a point where we say, yes, the employee is now happy with the salary that they receive.

A job is an occupation?

A job is an occupation where you are paid not based on your living expenses but based on the value of your contribution.  The problem comes when the employee begins to think that the job is a business which must match their operating costs. Your living expenses could be your operating costs if you were a business. Let me break it down for you so that you understand. When you are hired you are hired and paid according to what is perceived as the value of the job. So if the company is looking for an accountant it will pay the accountant according to what the business perceives to be the value of the function and not what the person deserves to get. The company is not paying for a person it is paying for the service that the persons brings to the company based on their capability. That is why every company has a ceiling on their salaries, because they have to make a profit.

Perhaps the argument then is what is the perception of value between the two parties. The employee might view it at a higher price whilst the employer views it at the lower end. The more diverse the views the longer the rope hence the two ends of the salary negotiation never meet. Ultimately though, the performance of the business will determine the actual value of the function to the company at the local level. At a macro level the value in a country has a huge determination. If a company is performing well, it might meet the macro value of the function such that a salary of USD 2,500 is close to the average national salary of USD2,850 in a country.

The Company was not created to Cover the Living expenses?

The employee then makes the mistake of thinking that the company must cover his or her living expenses yet the company is paying for the value of the employees service. If the employee wants more money then they must either increase the value for their service or find a company that pays more for the service of the employee.  Now, it is up to the employee to match their income to their living expenses by either finding a way to increase their income or by reducing their living expense. As long as the value of the service an employee brings is lower than their living expenses they will always be poor.

Being able to match your income to your expenses is a function of different things. It is a function of size of family or responsibilities or number of people supported, education being pursued, transportation needs, food needs and much more. It is not easy to just wake up and say am living to my expenses.

However, You are a mini-business

You are a mini-business, if there is no demand for your services you cease to be relevant, and if your studies no longer apply you will not be relevant, if the economy changes there maybe no place for you to be hired, an employee is the riskiest mini-business because they are not in control of their product, their time, their place of operation, have no capital and no room to be creative when there is no business. When the job ends the employee starts looking for an employer, if there is competition they might never get a suitable employer if an employer at all. Most people are stuck in the same job for 20 years or more or are stuck with their degrees simply because they feel they have no room to change, they are not in it for the business but are in it for the occupation.

In an ideal world before assuming any responsibility one would be able to measure the level of expenses that they must meet hence will determine the level of income to aim for. However this is not always possible as responsibility is thrust on you before you even measure your expenses.