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There are some economic theories about non-monetary compensation that try to explain this. Basically: Total Compensation = Salary + Benefits + Intangibles Tho
by pbronez 6y ago
There are some economic theories about non-monetary compensation that try to explain this. Basically:
Total Compensation = Salary + Benefits + Intangibles
Those Intangibles can be things like working environment or commute, but they can also include your affinity for the organization’s mission. People are willing to take smaller salaries when they’re working on something they love & respect. It takes more money to convince people to work on boring or undesirable things. It’s the exception to be paid well for something you like.
- amscanne 6y agoI think the word you’re looking for is “utility”. People maximize for utility, which includes all of the terms above. Utility of money also has diminishing returns, etc.
- Kronen 6y agoI disagree, one of those intangibles is the easiness to learn, so most of the time you get paid less for working on boring or undesirable but easy to learn things like one CRUD app after another. And you get paid better for more difficult and interesting things, because there are less people able to do it.
- convolvatron 6y agoi find the contrary to be true, largely without exception. the boring useless stuff that no one wants to touch generally pays alot better. work that I actualy care about is difficult to get paid for
- lostcolony 6y agoI think you need to call out bonus and RSUs/long term incentive plan here, too. Many places don't have them; talks of salary invariably leave them out, but they are what makes the FAANGs TC particularly compelling. And other companies do have them, but oftentimes it's hard to figure out which do, and for what roles (since it sometimes is dependent on seniority and perceived importance).