Have you seen American Pickers? It’s a show on the History Channel about two guys who go around to homes that are one dead cat away from being on Hoarders and then buy some of their stuff to refurbish and sell at an antique shop. Or at least that’s what I think it’s about. All I really remember from the bits I saw were scenes where they’re trying to haggle with a bunch of collectors about beaten-down signs, old bicycles, and assorted knickknacks. The entire show seems to enforce a single message:
Something is only worth as much as people are willing to pay for it.
Sounds simple, right? That’s pretty much the tenet of any capitalist market, after all. It’s the reason why we have stocks, jewelery, VIP rooms at clubs, corporate brands, sommeliers, and organic food. If we didn’t put a premium on certain items over others, we would have a mono-level system, where quality (or a lack thereof) could not be identified. Some people would say that this is a good thing, since it puts everyone on the same level. I say those people are no-good Communist hippie hoboes who are probably supporting their bongo-playing, illegal substance-smoking, silly hat-wearing habits through food stamps and generic brands and should be kicked out on their hemp-clothed butts.*
We pay more for certain things because we perceive that they have a higher value. That’s why diamonds cost a lot. That’s why some menus have absurdly expensive items. And that’s why some people get paid more than others.
Experience, education and reputation can increase perceived value.
Regardless of one’s actual work-related skills or competencies, sometimes, it’s one’s social skills that make all the difference. It’s how the phenomenon sometimes referred to as Why did they promote that jerk? exists in the first place. Some people can play to social niceties better than others, and it can pay off for them in the workplace.
In other cases, promotions (and usually raises) are given by performance metrics as a sort of meritocracy. Proof of productivity and improves performance are essential here, and can make all the difference in moving up the corporate ladder. But in many cases, employees have to make their employers aware of this; if a boss thinks you’ll do better work for the same pay, they’ll continue to give you the same pay.
Companies may produce any number of goods and services, but they all invest in human capital. They rate their workers on their comparative value from the tasks that they are assigned, and budget accordingly. Sometimes, these numbers are deflated or inflated. So much like a stock trader, it falls on the worker to correct the mistake (or not). Sometimes, this means negotiating a raise. Sometimes, this means shopping around for a position with a competitor. And sometimes, it means biding one’s time to prove their worth to the company.
The cost of working at any job should be less than or equal to the cost of not working somewhere else.
So how much are you worth? Well, that depends on how much your company is willing to pay for you. And if you think that you’re being undervalued, maybe it’s worth your time to see if you can get an accurate appraisal.
* Kidding, I’m sure that you’re a charming bunch, but you should really look into economics and how a global market works. Just sayin’.
