Advantages & Disadvantages Of Sharing Your Salary Information

Conversations about money in our deeply rooted Asian culture needs to be handled delicately. You must discuss your earnings in a strategic manner. It does not matter if you are sharing your salary information to your closest friends or trusted parents!

Do take note of these advantages and disadvantages:

PROS

1. IT MAY AIDS IN EMPLOYEE RETENTION.

Whether you want to believe it or not, salary transparency is a valuable tool to have in the workplace dynamics. Employers are highly encouraged to open up about how the compensation and benefits are determined. This will make the employees feel that they are being paid fairly. Moreover, it boosts job satisfaction and aids in employee retention.

Salary is the most common reason why individuals leave their positions. However, you may feel underpaid when you are actually not! Employers can avoid this scenario by increasing the transparency when it comes to compensation practices.

2. IT MAY IGNITE USEFUL ADVICE.

Sharing your salary information to the people whom you trust the most (e.g., your spouse or parents) may be beneficial to your finances. More often than not, the conversation does not stop at sharing your monthly salary. Your family members or friends may grill you about your savings, negotiating skills, and the organization’s salary transparency. Thus, you must carefully select the people whom you will disclose these information to.

Your trusted confidant may point out the loopholes in your contract or the company’s wrongful practices. You can learn so much from the people who are genuinely concerned about your wellbeing. Make the necessary improvements afterwards.

CONS

1. IT MAY RESULT TO RESENTMENT.

When it comes to disclosing your salary information, you need to be wary about your co-workers. Imagine how uncomfortable your co-worker (i.e., who holds the same position) will feel if you make more than them! You may come across as boastful and arrogant. Remember that anything you say may be used against you.

2. IT MAY RESULT TO UNRELIABLE COMPARISONS.

The main reason why some Human Resource professionals suggest to keep your salary confidential is because of the inevitable diversity in the marketplace despite possessing similar descriptions. That is the reality! The varying salaries depend on the individuals’ set of skills and experiences.

You might be a teacher earning an average salary, but my salary could be different from yours due to a cluster of reasons.

Image Credits: pixabay.com

Image Credits: pixabay.com

Just because you shared how much you earn does not mean that the other person will do the same! Although being open about your salary information may be beneficial at times, it is a personal choice that you have to carefully consider.

Sources: 1, 2 & 3

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Important Things You Must Know About Money And Happiness

The aged old question of “Does Money Buy Happiness” has been puzzling the minds of many over the past decades. A current research by University of British Columbia and Michigan State University showed that while more money decreases sadness, it might not increase joy.

The researchers named Elizabeth Dunn, Kostadin Kushlev, and Richard Lucas said: “having more money provides more options for dealing with adversity”. Hence, wealthier people may feel a greater sense of control on a difficult situation that poorer people.

1. MONEY RELATIVELY INCREASES HAPPINESS FOR SOME PEOPLE

Princeton researchers released a study in 2010 showing that happiness increases as the income increases until US$75, 000. After this certain point, it plateaus. It is due to the fact that stress and financial difficulties get harder and harder as your income descends in the five-figure realm.

Image Credits: Aaron Patterson via Flickr

Image Credits: Aaron Patterson via Flickr

For those who are struggling to make ends meet, making more money generally increases happiness. But, once a person has enough money to provide for the family and oneself, more money doesn’t lead to increased happiness.

2. YOU CONTROL THE EFFECT OF MONEY ON YOUR HAPPINESS

Having a balanced life, being able to practice your hobby, and volunteering certainly increases happiness. If you apply these ideals to money, you can generate happiness.

Studies show that you will get more satisfaction if you spend your cash towards memorable experiences such as vacations than towards material things such as a new table. Likewise, lending out possessions can help you enjoy the material things that your money bought.

3. DOES OWNING MORE AND ACHIEVING MORE MAKE YOU HAPPIER

If more money comes at a cost of more responsibility and heightened stress in the workplace, then that person will not experience added happiness. Owning more or shopping more only increases happiness for a short run. Spending more on others generates more happiness than splurging on you.

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