3 ms·
The 4% difference compounds reasonably well. Suppose you start at $80k and work at the company for 5 years. After five years the strict 8-5 eng in your exampl
by hgh 13y ago
The 4% difference compounds reasonably well.
Suppose you start at $80k and work at the company for 5 years. After five years the strict 8-5 eng in your example is making $87k--barely keeping up with inflation--and the hard worker is making $101k. The total compensation difference over 5 years is $35k.
Unfortunately, real world compensation schemes often don't even work out as well as your example...
- comrade_ogilvy 13y agoIndeed, a 4% difference compounds quite well. Unfortunately many people imagine they might get a 3% or 4% net bump, when they are really going to get 1% extra. Working an extra 20% so that you are paid appropriately larger salary 19 years down the line is not a terrible choice if you really need the money. It is also possible you will earn true grade improvement along the way and get a one time additional bump of 5% for your effort. Of course, if we reverse the equation, things might look differently. I have about 3 potential free hour per workday and 12 free hours per weekend day, for a net 39 hours of "my own time", earned by showing up to work. Giving 10 hours of those to the employer is a "pay cut" of 25%.