Pay equity as a measure of a person’s worth

January 7th, 2014 → 6:22 am @

Entrepreneurs tend to measure their worth through their achievements.  They see close links between their actions and outcomes… “I work more, and I get more”, “I find a new product/sales model/market and I make more sales.”  They also spend a lot of time negotiating and fulfilling contracts, so the link between agreement and delivery is also clear.  In the entrepreneur’s world, “I eat what I kill” or “I stand by the deal I made” often sums up his/her view.  And the ultimate measure of performance (and often self-worth) is the value of the company which is created.

The employee often does not have such clear measures.  Individual performance is often hard to measure in a team, and the employee seldom gets the satisfaction of being able to say “I built this company.”  So entrepreneurs should not be surprised to find that employee self-worth may be tied to quite different factors, with “relativity” being one of the commonest. (more…)