Tuesday, November 16, 2010

Everyone should know everyone's pay!

According to columnist Matthew Lynn, everyone should be open about their pay.

1) Everyone will benefit because we aren't sure if we are fairly paid unless we know what our colleagues and bosses are getting. Our bosses can easily hookwink us because we don't have enough information. Knowing everyone's pay will allow us to seal a better salary package.

2) We tend to feel insecure of our earnings if we do not know how much others are making. We are likely to assume that they earn more than us and feel lousy about it. Truth is, you are probably above average and your self esteem will improve upon knowing your commercial value.

3) It will make us financially responsible. How many times have people bought LV, BMW, Patek Philippe, condominiums on credit without being able to afford it? This is because people don't really know how much you earn and thus some people buy more than they can afford to create an illusion of being highly paid and successful. If everyone knows how much you earn, you don't need to buy anything to create any illusions. Everyone will be humbled and purchase goods that match their income (since it is no secret).

Thus disclosing one's income may be embarrassing in the short run but beneficial for all in the long run. How much do I have and earn? It's all in my blog! Now tell me yours....

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