Scientists say how much a worker actually earns is just as important as how satisfied they are with their pay in determining their happiness.
Professor Amit Kramer, of the University of Illinois, said: ‘Pay, as you might expect, is a relative thing.
‘I think most people would agree that a certain level of pay that allows you to meet your needs is critical. However, beyond that level, relative pay becomes an issue and with it, perception of pay or pay satisfaction. The way individuals evaluate their pay is by comparing their pay relative to their co-workers’ pay, relative to the effort the put in, and relative to what they sacrifice in order to work.’
Professor Kramer believes that employers should understand the sacrifices their workers make and offer different work arrangements and policies to compensate :’In a time when the boundaries between work, life and family are so blurred with the increased use of technology that allows many employees to work everywhere, anytime, I think employers should consider offering flexible work arrangements to employees who can perform their work off-site and off-schedule,’ he said.
‘That type of a flexible policy that would allow all employees – not just those with families – to better balance work, family and life demands as they see fit.’
Read more: http://www.dailymail.co.uk/sciencetech/article-2226403/How-happiness-pay-rise-shortlived–working-home-really-improve-life.html#ixzz2B0w1BMjS