Tuesday, July 30, 2013

The Real Deal Re: Your Salary or Lack Thereof

Ask people why there are salaries and hourly wages?  The usual answer is that a person on salary generally has advanced further along the career path and is more of an expert in whatever field they're working in, as compared to the hourly earner.  As such, they know what needs to get done and often will be more efficient at their duties without losing pay.  It's okay to work smarter, not longer when you're on a salary.  Hourly wages actually punish the efficient worker by decreasing his total pay when he finishes quicker.  On the other if the workload suddenly increases, the salaried...  BLAH, BLAH, BLAH, YEAH, YEAH, YEAH.  While there is obviously some truth in all I've been saying, IT IS FAR FROM THE REAL REASON FOR SALARIES...

The reason some people are paid with a salary instead of an hourly wage is Because if they were to publish their earnings as an hourly rate, PEOPLE NOT ON CURRENTLY ON SALARY WOULD SHIT A FUCKIN BRICK!!!

Let's look a very simple, mild example:
Joe is a hard working man.  His gross annual pay is $120,000 (about $100,00 net - Not a zillionaire, but he makes a fairly large amount of money.  Less than 20% of Americans earn equal or more than that) but He takes no vacations or sick time and religiously works 40 hours per week.  Due to a new law, all pay compensation must be delivered in terms of pay per hour worked.  Joe's fine with that, since he works 5 days per week, 8 hours per day already.  So, what is Joe's pay?  52 Weeks per year * 40 hours per week,   is 2,080 hours worked per year.  $120,000 divided by 2,080 comes to   $60 per hour.  That's going on 8 hours per day,  5 days per week, without fail.

In the time I've been drafting this blog, I would have made $60 and be working on another as I'm typing.  After that $120, I'm gonna do $60 6 more times today, and that will be my pay for today.

Today's earnings:  $480
Times 5 days per week is:  $2,4000.
Times 52 weeks per year is:  $124,800.

So not too outrageous.  I've heard of $60/hour.  e.g. Labor rates for mechanics are sometimes more than double that.  In the end they aren't making all that money anyway, the shop is taking most of it.  Plus, they very often to pull in 40 hours in a week.  The relentless pounding of unwavering 40 hours is what the big difference between our friend Joe and reality.  Fuck Joe.  He's nobody.  Just a middle management stiff.  It's the real execs, directors, and officers that make you want to slit your throat.

Think about it like this, someone who is paid (I'd never say "earned") $1,200,000 is at 10 times Joe's pay.  OR IN OTHER WORDS, $4,800 PER DAY.  I'm sorry that's
$4,800 PER DAY.
Really?  per day?  That person is valued that much more than me?
When I realized the guy in the office right above my head is being paid $600 per hour and I'm being paid $25 per hour.  I think I might just have to go up there and kick his lilly ass, just to keep from killing myself.
So there you have it.  That's why we have salaries...  because it's really fuckin' hard to justify $600 per hour.  Especially when you don't even really work...

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