About Careers Internship MedBlogs Contact us
Medindia LOGIN REGISTER
Advertisement

Salary Affects Employees' Happiness And Job Performance

by Bidita Debnath on October 7, 2012 at 9:37 PM
Font : A-A+

 Salary Affects Employees' Happiness And Job Performance

According to a study, employees are happier at work if they are paid a good salary and also if they earn more than those of their peers with whom they compare themselves to.

The study that analyzes the relationship between happiness and income from work was carried out at Universidad Carlos III in Madrid (UC3M).

Advertisement

Published by Professor Eduardo Perez Asenjo of UC3M's Economics Department, it shows that relative earnings affect our happiness and our job performance.

In his analysis, Professor Perez Asenjo, found that if an individual's earnings are less than those of her/his peers, s/he will work more hours.
Advertisement

What causes this effect? "The most likely explanation lies in social comparisons, although it could also be due to the idea that if those around me earn more than I do, it might indicate that if I work hard I will end up earning as much as they do," explained Professor Perez Asenjo, who also works at the Banco de Espana (the National Bank of Spain).

The explanation derived from empirical analysis is the first one.

"Therefore, the effect of others' earnings on my happiness is negative, because I compare myself to them and it makes me unhappy to earn less than them; so I work more hours so that I can earn the same as or more than them," he said.

This finding can be applied to labor management or to human resource management in companies.

"It might be a relevant criterion to keep in mind, when setting salaries, that an employee is concerned not only with what s/he earns, but also with what those around her/him earn," stated Professor Perez Asenjo, whose perception is that a happy worker is much more productive than an unhappy one.

"My personal opinion is that employees' happiness is not really taken into account in work environments, from the company's perspective," he concluded.

Source: ANI
Advertisement

Advertisement
News A-Z
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
What's New on Medindia
Top 10 Vitamin B12 Foods for Vegetarians - Slideshow
Targeted Screening Program Beneficial for Prostate Cancer Screening
Are Menopause Symptoms Troubling You?: Try these Options
View all
Recommended Reading
News Archive
Date
Category
Advertisement
News Category

Medindia Newsletters Subscribe to our Free Newsletters!
Terms & Conditions and Privacy Policy.

More News on:
Celebrating Life: Positivity and Rejoicing Top Thirty Quick and Easy Health Tips Euphoria 

Most Popular on Medindia

How to Reduce School Bag Weight - Simple Tips Blood Pressure Calculator Iron Intake Calculator Indian Medical Journals Calculate Ideal Weight for Infants Hearing Loss Calculator Pregnancy Confirmation Calculator Sanatogen Daily Calorie Requirements Diaphragmatic Hernia

Disclaimer - All information and content on this site are for information and educational purposes only. The information should not be used for either diagnosis or treatment or both for any health related problem or disease. Always seek the advice of a qualified physician for medical diagnosis and treatment. Full Disclaimer

© All Rights Reserved 1997 - 2022

This site uses cookies to deliver our services. By using our site, you acknowledge that you have read and understand our Cookie Policy, Privacy Policy, and our Terms of Use