Productivity Impacts Income

I was doing some research the other day as we prepare to update and relaunch the Mise En Place website next month. Admittedly I went off on a tangent as I was attempting to learn from Google what people search for when they look for the type of services that we provide. Interestingly enough, one of the phrases was “earn more money in less time”. I’m guessing that is something that most of us would be interested in! That’s when it dawned on me that being focused, organized, and productive at work or at home allows you to do just that!

Increase your productivityI am going to keep this one very short and to the point. Numbers tell a story, so here is my story. Research tells us that the average knowledge worker, a salaried employee, earns $25 an hour. Based on a forty-hour workweek, such an employee would earn $52,000 annually.

So what happens when you consistently work sixty hours a week? That hourly rate drops to $16.66. Or, maybe you are working eighty hours a week (yikes!). That decreases your hourly rate to $12.50 which is getting pretty close to minimum wage. So, why are you taking the pay cut? If you really want to work that many hours in a week, get a second job — you’ll actually be making more money!

I don’t think that’s what you really want to be doing with your time. But think about it. Working more hours is actually reducing your hourly pay rate. Plus, what additional costs are you then incurring since you have less time to deal with your personal life?

  • increased childcare costs
  • increased food costs for take-out meals or dining out
  • less time to exercise
  • not getting enough sleep
  • inability to keep up with things at home such as paying the bills on time
  • projects left undone
  • the added stress
  • the increased resentment
  • and so on…

Now, I personally think that you are worth more than what you are technically earning an hour, and my guess is so does your employer. Isn’t that why you are earning the salary you are earning?