When working at a company you get paid whatever they see your value. This value is usually at a minimum pay, required by the government, otherwise, they would probably pay you less.
Working for a company and doing the work of two people should entitle you to be paid double, but it never works that way. From a mental standpoint, you need to understand what your value is.
The value you give yourself should be worth way more than that of minimum wage. In a desperate situation, you will work for any pay however, at some point, you need to realize how important your time is.
Time is not something you can get back. Is your time worth $15 an hour or is it much more? Once you understand your value, you can sell your time for more money.
For example, a lawyer could charge a flat fee for his services, regardless of how many hours it would take. The lawyer will charge based on the value of the services the client requires rather than how much time was spent.
Too many people underestimate their value and tend to compare it to others. Working for little money without knowing your value can be tricky, but there are ways to avoid being taken advantage of.
To avoid being underpaid, you must understand your true worth in the job market. This starts with a thorough self-assessment of your skills, experience, and unique strengths.
Researching salary data for comparable positions and networking with professionals in the same field can provide valuable benchmarks. Beyond technical skills, it is crucial to recognize the value of soft skills like communication, leadership, and problem-solving.
With this knowledge, you should have no problem getting paid for your value and avoid being taken advantage of.
Time is Precious
Time is our most finite resource, and once it is gone, you cannot get it back. This makes the concept of “selling your time” for an hourly wage inherently flawed.
Corporations are required by law to pay a minimum wage and it will never be enough for an hour of your time, especially after taxes. When asked if you would rather have more time or money, which would you choose?
If you pick money, then consider working half your life to buy things you do not have time to enjoy. Choosing time would allow you to value your choices more.
Does it make sense to work full time for $15 an hour to buy things you do not need, or to work fewer hours for four times the pay? The idea here is to work smart, not hard.
Everybody works subjectively hard, but very few work smart. For example, if somebody gave you $500 to dig a big hole, you could spend two full days digging (working hard), or hire two people to dig it, pay them each $100, and keep the remaining $300 (working smart).
Not only did you not do any work, but you also were able to keep your time.
We as a society put in our valuable time for material items that we barely spend time with. We spend a lot of our time working for little money to spend it right back on something that gives us temporary happiness. Expensive, hard-to-obtain items are just that, hard to obtain.
The point is your time is more valuable than you think and you deserve to be paid what you are valued at.
The saying “time is money” rings truer than ever. It is not just about the hours worked but the value created within those hours.
Hourly Pay vs Per Job
Most get paid based on the number of hours clocked in, which does not truly capture the real value they bring to the table. We need a new approach that goes beyond just counting hours and instead recognizes the full worth of each individual. This means considering their skills, experience, and the unique things they contribute to their work.
Imagine getting paid 40 hours a week for six months of work versus spending a couple of weeks to sell a house, but not selling it for six months. You could work a month out of the year and make enough money for the whole year from selling a couple of houses as a realtor.
So, would you rather work 40 hours a week for the same amount of money as working less, but charging more? Most people opt for a consistent income rather than a few huge paychecks yearly. Working hard is one thing, but it is all about working smart.
While providing a basic safety net, minimum wage often undervalue the time and effort that somebody puts into their job, especially in fields requiring specialized skills or demanding conditions.
For example:
- An experienced teacher does not just impart facts, they nurture minds and shape futures. Can an hourly wage truly capture the value of that impact?
- A skilled nurse does not just administer medication, they provide comfort and care during vulnerable moments. Is their time accurately reflected in an hourly rate?
- A creative entrepreneur does not ‘work’ set hours, they invest their time, energy, and passion into building something new. Should an hourly framework limit their compensation?
The video below gives a great example of why you should consider charging differently for your work.
Value Over Pay Equality
The idea of pay equality should not exist because it says that everybody, regardless of experience or education, should be paid the same. This ridiculous idea only applies to people currently unhappy with their income and need to play the blame game.
A prime example of this would be sales commission.
Imagine ‘person A’ getting more commission from their sales, but overall less money because they do not generate a high volume. Now imagine ‘person B’ getting a much less commission but generating way more sales.
How is it fair for ‘person A’ to get paid the same as ‘person B’ when they are generating way less sales? It makes no difference here of what gender a person is, but how much value they have as a salesperson or employee.
This alone says a lot about getting paid for your value, not just because of the opposite gender. Again, getting paid for your value should be from proper experience, knowledge, and overall ability.
Stop being so concerned with judgment from others that ‘you charge too much’ when the fact is you may be able to charge even more. There is always a price point that the market will set on its own.
People are willing to spend three times the price for an Apple computer because they are convinced it has more value and will justify paying more. The same can apply to your work value.
Avoid the idea of pay equality and maintain the notion of getting paid what you are valued at. It takes time to know what you are worth and is not as hard as you may think.
Moving Beyond Minimum Wage
The minimum wage debate often overlooks a crucial point where your time is your most valuable asset. Avoid falling into the trap of undervaluing it and instead, consider the minimum acceptable payment.
Think about what you bring to the table. What unique skills and experiences make you stand out?
Invest in yourself by learning new things, expanding your knowledge, and becoming indispensable. By demonstrating your worth and actively seeking opportunities that recognize your value, you can break free from the limitations of minimum wage and earn what you truly deserve.
While a minimum wage is crucial as a baseline, we need to explore alternative compensation models that acknowledge individual value. This could include:
- Performance-based pay. Rewarding individuals for exceeding expectations and achieving specific goals. This could motivate you to work harder knowing you will get a bonus.
- Skill-based pay. Getting proper compensation for the development of valuable skills and expertise. The more experience and knowledge you have, the more you should get paid.
- Profit-sharing. Allowing employees to share in the success of the company they contribute to. This will make you feel like you are a part of the company, not just an employee.
- Valuing ‘invisible’ labor. Recognizing the contributions of roles focused on emotional labor, caregiving, and community building, are often undervalued in traditional wage systems. Company morale is a huge problem in a lot of work environments.
Avoid taking a position within a company and expect to climb the ladder. Consider owning the ladder instead and paying yourself what you deserve. Learning to be your own boss is much easier than you think and will come with more freedom.
Taking Charge
Maria works as a cashier at a busy grocery store, earning minimum wage. She is a reliable employee who always shows up on time and handles transactions efficiently. However, she feels undervalued and wants to earn more.
Instead of accepting her current situation, Maria decides to take charge of her career path by considering the following:
- Skill enhancement. Maria notices the growing popularity of online grocery ordering and delivery. She enrolls in a free online course on inventory management and digital order fulfillment.
- Initiative. She approaches her manager with a proposal. Maria suggests implementing a system to improve online order accuracy and efficiency, utilizing her newfound knowledge.
- Demonstrated value. Her system is a success; leading to fewer errors, increased customer satisfaction, and cost savings for the store.
- Negotiation. Armed with this evidence of her contribution, Maria confidently negotiates a raise while highlighting her expanded role and the positive impact she made on the business.
By proactively increasing her skills and demonstrating her value, Maria breaks free from the minimum wage trap and secures a better future for herself. Learn to grow and advocate for fair compensation even in entry-level positions.
In a real-world situation, sadly, most bosses would laugh and think that if you get a raise, they should too. Just because you are the boss, does not mean you should make a more significant amount of money.
Determining Your Value
Determining your value in the workplace is a crucial step in your career journey. It empowers you to negotiate fair compensation, seek out opportunities, and feel confident in your contributions.
One of the hardest things to admit can be that you deserve more pay purely based on your prior experience. If a company you are applying for laughs at that idea, then use it as an obvious sign to start your own venture.
Consider your experience outside the workplace and what led you to be where you are today. Some people learn their skills before joining a company, whereas some learn at the company. Know what you are capable of before job searching or even entertain the idea of starting your own business.
You can determine your value by learning to:
- Identify hard skills. These are teachable, quantifiable skills like proficiency in specific software, data analysis, project management, or foreign languages.
- Recognize soft skills. Skills like communication, problem-solving, critical thinking, leadership, teamwork, and adaptability.
- Pinpoint your expertise. What specialized knowledge or experience do you have that sets you apart? This could be industry-specific knowledge, unique training, or a deep understanding of a particular market.
- Consider your accomplishments. Review past performance reviews, successful projects, and positive feedback. Highlight your achievements whenever possible (e.g., increased sales by 15%, or reduced costs by 10%).
Remember that getting paid for your value is a great goal to achieve and most never do. Instead, they continually work underpaid and never feel appreciated.
Related Article: “Making Money Fun: How to Embrace Financial Freedom“
Research Market Value & Set Your Price
Knowing what others in your field are getting paid is important so you have something to compare to. If somebody has no experience, yet they are making decent money, imagine what you could make already having prior exposure.
Factor in the following concepts:
- Industry standards. Look into salary surveys, industry reports, and online resources (glassdoor.com, salary.com, indeed.com) to see what others in similar roles with comparable experience are earning.
- Geographic location. Salaries can vary significantly based on where you live. Factor in the cost of living and local market demand for your skills.
- Company size and type. Larger, more established companies often have more structured salary ranges and benefits packages than smaller startups.
- Negotiation power. If you have in-demand skills, competing offers, or unique qualifications, these may increase your leverage.
The hardest thing to do is to set your price in comparison to others. Avoid comparing yourself directly to others and consider what you want to get paid for your time. Your time is more valuable than you think so take the proper steps to come up with your price.
You should be able to:
- Determine your salary range. Based on your research and self-assessment, set a realistic salary range with a minimum, target, and maximum.
- Factor in benefits. Consider the value of health insurance, retirement plans, paid time off, and other perks when evaluating an offer.
- Be prepared to negotiate. Practice articulating your value and justifying your salary expectations. Highlight your skills, accomplishments, and market data to support your position.
Focus on What Matters
If you plan on working your life away then you will miss out on what matters in life, enjoying it. If you enjoy working and it is the only thing you want, then congratulations, but most people want a proper balance.
There are ways to work less and get paid the same, or more, as your competitors, you just need to determine what exactly you want in life.
Understanding the potential for professional development, promotions, and skill-building within the company will lead to growth opportunities that most people will ignore. They have the job and that is all that matters to them.
They feel as long as they do the work, they will keep their job forever which is never the case. Learning to evaluate elements like flexible work arrangements, company culture, and work-life integration will put you ahead of the curve.
Ask yourself “How does this role align with my values and long-term career goals” and “Does the work itself provide a sense of purpose”?
By taking these steps, you can gain a clearer understanding of your worth in the workplace and confidently advocate for yourself throughout your career. You will also be able to decide whether you need a company or if they need you.
If they need you, then you can confidentially tell them your predetermined self-value. Otherwise, look elsewhere or create something on your own.
Regardless, getting paid for your value is something worth looking into because it will make you feel appreciated.
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