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by run4yourlives2 3977 days ago
>How does someone else earning more money hurt you?

It's not that simple. The employees were already working under conditions that job/person a was worth 2x and job/person b was worth 3x. That was established and everyone was content (or reasonably so).

All of a sudden, someone declared that job/person a is worth 3x too, with no corresponding change to the output or expectations of either job.

Job/Person b, having been previously told that their value was, at 3x, MORE than job/person a, is now told that their value is now equal.

That's a redefining of the previously established contract of understanding. To expect Job/person b to completely agree to that redefinition is rather naive, to say the least.

I'm more valuable to my company as their key software developer than the receptionist. I've got more knowledge of how the company works, contribute more to the bottom line and am harder to properly replace. I expect my compensation to reflect that.

If you suggest all of a sudden that I'm not any more valuable than the receptionist hired last month, you should rightly expect that I'd be a little pissed.

3 comments

How do you know how valuable you are? Or how much more valuable you are than the receptionist.

My assistant is ridiculously valuable. She's a multiplier for the team. Her presence means invoices get paid, visitor logistics are taken care of, contracts get renewed, the office is in order. I don't control her pay, but every hour she is present easily saves me a quarter hour, and probably saves my direct reports a similar amount of time.

Essentially that role for me is manufacturing an asset that I cannot buy -- time. If I could control her salary, I would double it.

Because in most cases he could learn to do her job in a few weeks, whereas it would take her years to learn his, if at all. Look what website you're on - people here write software to literally eliminate jobs in many cases, and to do so you have to understand that job even better than the person who does it, and then some. And this doesn't just apply to "menial" jobs - by the time a software developer is done implementing in a highly specialized field, they often fully understand the domain better than the experts.

Look, I understand the value of a really good personal assistant, at times they can be like magic, but let's be serious, all jobs are not equally difficult.

To elaborate a bit on this, the term economists like to use for this is "alternative choices". The minimum price of the assistant is somewhere around how much it would cost to hire and train someone to replace her - that is, her minimum price is set by the price of the alternative choices that the employer has. After all, it is irrational to hire an assistant at $2X who will produce Y output when you could hire an assistant at $X who will produce Y output.

On the other end of the scale, the maximum price is value of her productive output to the company - it is irrational to pay her more than she can generate.

Negotiation is the skill of convincing your employer that you're harder (ie, more expensive) to replace, thus propelling your pay closer to that maximum.

> If you suggest all of a sudden that I'm not any more valuable than the receptionist hired last month, you should rightly expect that I'd be a little pissed.

Then leave.

Seriously. If you are so upset then leave.

But when interviewing, you might want to come up with a different reason for leaving the job. The interviewer might not be so understanding.

Update: wow, a downvote. :-) I welcome the downvotes.

Just up and leave? Y'know, its possible to work these things out without something so extreme.
Sure there is... Don't be grumpy over someone else's good fortune.

Be happy for them.

Be happy that they can now afford to get married.

Be happy that they can now save money to buy a house.

Be happy that they can now save for their kid's college education.

Be happy that you work for someone who cares so deeply about his employees and will be there for you when you need help.

That's what they did. Point being that upsets the company more than the person leaving.
I understand that very human response and would probably feel it myself, but if your salary is 3x the receptionist's, you're still not technically getting paid 3x what he/she does, once you factor in a progressive tax rate and public services that are used disproportionately by lower-income people.

What this guy tried to do is in effect just raise the floor of the minimum wage, which is also unfair to you.