Why do people find it difficult to understand their value on the marketplace?

[Khaza-R]

Ignorance of economic systems.

Because most people don't view the job market as an exchange of goods and services. You're quite literally selling your labour to someone that's willing to pay for it. Therefore just like any other goods/service there is value attached to it based on what makes it unique when compared to other's on the market. And also the demand for good/service.

I largely blame primary education for this. They regularly spread the myth that all college degrees are created equal and going to college will get you more money. Which isn't true, specialization is what will get you more money.

[Spectral]

I think there are two major factors at play. The first is flatly not understanding the simplest of economic ideas. The second is that acknowledging that their low pay is, in fact, in line with their skills and value added means acknowledging that they don't really do much of value. This isn't an idea that people generally deal well with, especially if they're in a career that they were told has great value.

[Themius]

Maybe it's because people don't know how much everyone else is making and according to that topic a couple weeks ago one should be in the dark about salaries around them.

[Spectral]

Maybe it's because people don't know how much everyone else is making and according to that topic a couple weeks ago one should be in the dark about salaries around them.

They're too ignorant to use GlassDoor? I guess that's possible.

[Orlong]

Because when you ask for too much they just hire the other person who asked for less

[Deleted]

Something I personally never understood is how peolpe don't seem to understand that their "value" on the marketplace/workplace is the key to how much they earn.

I oftenly hear people say that they work the same amount of hours as someone else (-or more) and they make less money than them which in their mind isn't fair. I often ask them in response what value they themselves and the other person bring to the marketplace, job or company and people usually just lock up right there.

Also, people don''t seem to want to think beyond what they are doing right now. If you would say to a person that we arent paid for the time but for the value we give to it (or put i it) they almost always say that they can't get more out of their current job and that's why my reasoning is wrong.
I would think that it actually means that my reasoning is spot on because that person isnt earning more because he/she cant give more value to the hour, which is why they arent earning as much as they would want in the first place.

Maybe people don't want to acknowledge this this or maybe they really can't comprehend it, I'm not sure.
What do you think? And what are your views on this?

I suppose you are correct in some respects but it's my experience that interpersonal relationships is a much more significant factor regarding your salary and potential upward mobility within the corporation. Competence will only get you so far and truth be told, nobody even notices or gives a shit about the extra mile you went and rarely does the quality of the work "speak for itself".

[Themius]

They're too ignorant to use GlassDoor? I guess that's possible.

Not every company has a comprehensive list of salaries on glass door.

[Polar1]

There's millions of words typed a day about this. Check the LinkedIn Pulse section.

First, the psychology of employees is such that everyone, even the most humble person, has a very good opinion of himself. Of course there's exceptions to the rule and there may be a case of depression involved. But most people think they deserve more. They might be getting something balanced between what they sold their time and skills for, and the value they bring to the group. But still, there is this little voice in the head that says that since the work is being performed right then there should be a promotion ahead! The idea of a "career" is created. So people want more and to get more they need to progress.

Only that, when people do their job right, and they keep improving at it, there is no reason to promote or adjust their roles. This leads to frustration and the feeling that they are not getting their worth.

If I have a friend in this situation - it was a lot more usual in my 30s, when I worked in a big corporation and was surrounded by ambitious types - I usually tell them to list what they want, and find out what he needs to do to get it. Once in a while you would get the "I want to become a partner here!" and ten minutes later they would say "yeah, no... what I really want is to open a diving school in Asia." There's where they will get full value for their time and that's where they will be happy.

The pictures the diving instructor posts... guys, I am thinking of asking him for a job now. And he makes three times what he made as a suit.

[jazen]

Because when you ask for too much they just hire the other person who asked for less

expanding on this, when labor market has little to no bargaining power, there are many others willing to work for less. I find it ironic in America that the vast majority of blue collar workers are against unionization when unions truly are the best way to bargain for better benefits and wages. As a lone worker, you have almost no power in relation to the 'boss.'

[Deleted]

Because when you ask for too much they just hire the other person who asked for less

Yes, if you aren't very valuable on the marketplace this is exactly what will happen.
That's also why so many people don't get paid much: they are easily replaceable.

So if someone wants to earn more try to be more valuable or be prepared to be cheap labour in low demand

[Independent voter]

I just keep asking for raises, eventually I stop getting raises so I start looking for a new job. That's the only way I know of to find your value.

[Daelak]

I think there are two major factors at play. The first is flatly not understanding the simplest of economic ideas. The second is that acknowledging that their low pay is, in fact, in line with their skills and value added means acknowledging that they don't really do much of value. This isn't an idea that people generally deal well with, especially if they're in a career that they were told has great value.

I want to emphasize on the word "ideas" in your quote. In reality, assumptions like efficient markets and true value accounted for by supply of labor and what you bring to the employer "value" are the opposite of clear and instantaneous. I don't think wages reflect the value of a worker because there is way too much distortion preceding the measurement of value of an employee. Consider the fact we don't really account for carbon pollution, let alone other types of pollution in any price for any good sold on the marketplace, so in reality we haven't been paying the true cost of said good, so why would we be paying the full cost of one's value?

[Cthulhu 2020]

expanding on this, when labor market has little to no bargaining power, there are many others willing to work for less. I find it ironic in America that the vast majority of blue collar workers are against unionization when unions truly are the best way to bargain for better benefits and wages. As a lone worker, you have almost no power in relation to the 'boss.'

Indeed, and it's primarily due to the fact that the only thing people see is money leaving their pockets. They didn't see the working conditions of the early 20th century, when no unions meant you were worthless except for a few pennies an hour. These days the simple minded will trust that their employers are going to be fair to them and look out for them. They take for granted the very things that unions brought about, and somehow believe we don't need unions any more.

It's the same with the anti-vaxxers, they didn't see diseases take children (and adults) all the time that are now practically non-existent due to vaccines. They take a healthy society, brought about by vaccines as something that just "is" and doesn't need to be maintained.

But I find that people in general are very short sighted, especially when it comes to things like a paltry amount of money leaving their pocket for union fees. Those unions that maintain their worker rights and salaries.

[Johnkie]

we live in a society where its rude to want to earn money, its rude to value yourself above others, and its rude to discuss finances

seems pretty simple to me

its wrong to value yourself above others... You can strive to be better then you were yesterday, but fuck that other shit.
Other, pretty much spot on.

[Orlong]

Yes, if you aren't very valuable on the marketplace this is exactly what will happen.
That's also why so many people don't get paid much: they are easily replaceable.

So if someone wants to earn more try to be more valuable or be prepared to be cheap labour in low demand

There is always someone else that can do your job just as good as you no matter how good you think you are, and often there is someone willing to do it for less than money than you want

[Annoying]

Yes, if you aren't very valuable on the marketplace this is exactly what will happen.
That's also why so many people don't get paid much: they are easily replaceable.

So if someone wants to earn more try to be more valuable or be prepared to be cheap labour in low demand

The real secret is planting a ton of code into the codebases that can't be easily inferred. That way, when they hire new people, the new people will have to ask you for help, and you'll seem more valuable.

Don't actually do that, but what Orlong is saying has merit. Many jobs just don't have a "more valuable" status. They have a "can or cannot do the work" status, and that's it. When hiring for any given job, the recruiter's duty to the shareholders is to hire the best person for a given amount of money. Once you're hired, there's no point at all to trying to be more valuable, as no one really gives promotions or raises past a certain point. I have a fantastic job that took me a chunk of schooling to be able to get, and I already know that if I feel I'm earning less than I'm worth, my only option for a "raise" in salary is to find a job willing to pay me more.

[Khaza-R]

Not every company has a comprehensive list of salaries on glass door.

Most companies have a list of salary ranges for a given position if you request them from HR. Some even openly post it.