Tuesday, October 25, 2011
Is Income Linked to Fulfilment?
According to Management Today magazine (Oct 2011 issue), the 'magic number', after which job satisfaction and fulfilment are no longer affected by income, is $71, 675.
It's not clear how this number is calculated...
I would have thought that in reality, there is no magic number. Certainly not a number we would all agree to.
What I do think is important however is having clarity of what really gives you satisfaction at work.
Of course income is important but I don't believe it is the most relevant measure.
The Australian Institute of Management (AIM) conducted an Employee Engagement survey last year to understand the impact of monetary incentives. The study showed that employee satisfaction is most heavily dependent on 'being valued and understood' with over 40% of respondents marking this as their primary need. Other key factors included:
'good relationships with co-workers'
'good relationships with my manager'
'new and interesting challenges'
'feeling valued by the organisation'
Pay ranked 10th on the list.
So whether there is a 'magic number' or not, what is apparent is that pay should never be your sole focus.
At the end of the day if you aren't performing tasks that energise you or are not producing an output that you are proud of, what good is more money?
I'd welcome your thoughts as always!