The top 5 percent of earners make up 85% of the country's income. But how much do you earn? Is your company at risk of becoming a victim of the 75/25 rule?
In most professions and businesses, the majority of revenue is generated by just 20-25% of the workers. With just 25-30% of employees making up 85% of company revenue, there is clearly a lot more money to go around. However, these numbers don't show the whole picture.
A person earning the bottom 25% of a profession makes the average amount, but their earnings are spread over the entire population. In a profession where there are 100 people, everyone earns a total of $10,000. But if the lowest 25% of earners are only paid $1,000, it would still be the same percentage of company revenue ($25,000/$100,000 = 25%), even though the average salary is lower.
To find out where you stand, we need to use the same math and apply it to your specific job. We need to find out how much you earn and compare it to others in the same field.
Calculate Your Salary
Use this table to calculate your hourly, monthly and annual salary.
This is the first step to figuring out whether or not you're on the wrong track. This is also the place where you can change your path.
If your salary is lower than what your peers are making, don't worry. Even the lowest-paid workers make more than the national average. Your problem is that you're making too little money.
There are two reasons why this is possible.
First, many jobs don't offer enough hours to justify the minimum wage. If you want to increase your pay, there needs to be enough demand for your skills. It's a numbers game. If there are just a few people looking for your skill set, then there will be low wages.
Your second reason is that companies are competing for fewer workers. If this happens, the companies that need workers the most will pay the least. In the last 10 years, this has been the case.
Even if you're getting paid well, you probably aren't doing what you want. Most people work because they have to, not because they want to. Many people are working 40+ hours per week, 7 days a week, just to survive.
It's easy to blame your job for not paying well, but the real problem lies within your expectations.
Changing Your Job Isn't The Solution
If your job isn't meeting your expectations, it doesn't mean you need to change your profession.
Instead, change the type of work you're doing. In some cases, it's easier to find a new job than to adjust the type of work you're doing.
Look around for new opportunities. Are there jobs available? Can you switch to a different role? Can you change employers? Or look at the market and see if there are different types of jobs available for