Tag / personal finance

by Nathan Coumbe

Same job, different pay

I saw a job posting’s salary description the other day that gave me pause.

The salary was dependent on three things:

  1. The number of courses taught (yeah, that makes sense. More work = more pay)
  2. The type of courses taught (More advanced courses = more difficulty = more pay. Also makes sense)
  3. The educational level held by the instructor…

That third item is the one that gave me pause. Here’s why:

If two people are doing the exact same type of work at the exact same level of quality, why should one with a higher-level degree be paid more than the person with a lower-level degree?

You might say, “Well, they went to school longer. They have more education. They’re more qualified.”

So what? Does that degree automatically mean that the person is more skilled at the job? No, not at all. 1

More education does not automatically confer a higher level of qualification or suitability for a job. The skill of the person, and nothing else, does that.

If the person with the higher degree actually delivers more or better work than the other, then I understand receiving more pay. They are arguably more valuable. But that has nothing to do with the degree and everything to do with the output of the worker.

Additional education might enable that higher quality, but then again, it might not. There are countless MBA graduates out there who are suitable for little more than responding to email or working in middle management. They would flounder trying to run a small business.

Perhaps changing the nature of the work in question would make this make more sense:

Let’s say Person A has a master’s degree in burger-flipping, and Person B has a bachelor’s degree in burger-flipping. But both workers flip the same number of burgers each hour at the same level of quality expected of anyone on the line.

Should Person A be paid more money simply because they got a master’s degree in the subject? I would argue no, because the quality of the output and the nature of the work are the same.

You might think I’m stretching this a bit, but I’m not. It’s the work that matters, the output, the results.

A person’s demonstrable skill determines their qualifications, not a piece of paper. That paper is often a false proxy for genuine qualification, a stand-in for real value.

But we buy into it because we’ve been trained to believe that more is better, higher is better. We must stop this.

We have to start measuring the proper targets and rewarding the right things appropriately.

  1. I’m aware that teachers are paid at different salary levels based on their educational levels (e.g., a master’s degree earns more income than a bachelor’s degree. However, just because that’s the case doesn’t make it right.

    Teachers should not be paid based on how much schooling they received, but on how good they are at schooling others. If someone with a master’s degree is educating students in a way that they outscore everyone else, then I can understand paying that teacher more (and she should share her secrets with everyone else so they can level up their students and make more money too!).

    Also, teachers should simply be paid substantially more than they currently earn, but that’s a topic for another day… ↩︎
by Nathan Coumbe

No effect, no opinion

Everyone seems eager to tell others that what they’re doing is wrong. 

“Don’t you know that it’s better to pay the minimums on your debt and invest the rest?”

“Why are you still renting? You should have bought a house by now… You’re just throwing your money away!”

“You can’t possibly know what you’re talking about because it’s not your job.”

“You can’t marry that person—it’s totally immoral!”

Well, maybe there’s a method to the madness…

Maybe you want those payments gone so you have total control over your income.

Maybe you’re still renting because you don’t know where you want to live yet. Or you don’t have enough money to cover repairs if something major happened. Or—GASP— you want to pay cash for a house! And renting is just buying you time until you’re ready. How crazy is that?

Or maybe you know exactly what you’re talking about, and you understand THEIR point of view too. You simply don’t want to live the same way as them. 

Here’s a rule I think more of us should live by: 

Unless my behavior affects you, you don’t get to have an opinion about it.

And the magic of it? This works for everything.

If you don’t approve of gay marriage, then don’t do gay marriage yourself. But that doesn’t give you the right to dictate someone else’s lifestyle. Because their behavior doesn’t affect you.

If you want to live a debt-free lifestyle, other people don’t get to tell you you’re an idiot because “that’s just not normal.”

And if you don’t want to wear a helmet when driving on your motorcycle, you do you. Your behavior is only going to kill you…

On the other hand, you can’t smoke in a restaurant or movie theater. Because your behavior affects my health, safety, and well-being.

You can’t dump your toxic waste in our waterways… Because by definition, it’s communal—it belongs to (and affects) everyone.

And you can’t text and drive. “Well that’s just my behavior – you can’t tell me what to do.” Actually, yes I can. Because while you’re texting and driving, you might smash into me at 70 miles an hour. 

You might be fine, but I’d still be dead.

So, the next time you feel the need to tell someone how wrong they are, ask yourself:

Does their behavior affect me?

If it does, say something. 

If it doesn’t, keep your mouth shut.

(Unless they’re asking for your opinion, of course).