Have the best possible place to work for is the first thing we should consider in creating wealth. Know what you want the most out of your workplace and evaluate if you are indeed in the best spot. No matter if it is financial compensation, work life balance, culture, feeling being valued and accomplished, know what you want and be in a place where you are offered.
Companies by and large want to create an environment that attracts and retains great talents. The research shows that the companies who clearly communicate their goals and missions throughout the organization are normally considered as the best. The mission inspires employees, but more importantly, it is for employee to know their daily role and how the role contributing to the mission drives the contribution to the same mission.
Say now you are lucky enough to work for a company that has clear mission and makes you feel empowered. What do you also care the most? Your compensation. You spend majority of your time to work so that you can be compensated to support your life and family. Where you work not only decides how much you make now, but how much your income could rise or fall over the course of your life time. Many companies communicate to leaders that compensation is not the most important factor, which I find hard to understand. Compensation should be at least the same important factor as any others for a success of company and employees.
Recently, Harvard Business Review released a research that for middle-skilled, middle class workers at low-paying firms, the chance of moving into the top third of the income distribution was just 0.6%, according to a recent paper analyzing U.S. Census data from 1990 to 2013.For middle-skilled, middle class workers at middle-paying firms, the chances of moving up the following year were 2.6%. But for middle-skilled middle class workers at high-paying firms, the chance was substantially better: nearly 12%. (The paper divides earners, skillsets, and firms up into thirds. So “high-paying” means the top third of firms, “middle-paying” means the middle third, and “low-paying” the bottom third. The same is true for skills. I use “middle class” to refer to the middle third of earners.)
Where you work matters, not just for how much you make, but for your economic mobility — how much you rise or fall in income over the course of your lifetime. If that sounds obvious, consider how often conversations about economic mobility leave companies out entirely, instead focusing on education, skills, or geography.
You might wonder how can some companies in the same industry pay so much better than others. High paying companies have strong talent retention rate and if you are lucky and talent enough to be in such company, chances are you won’t quit. The high performance and low turn over allow the company to have high efficiency and be successful. They don’t need to spend huge $ in severance packaging or frequently paying for acquiring new employees. Instead, they put their economy focus on its business and bottom line.
As my first advice to anyone looking for building wealth, make sure you are getting the best pay in your day job within the limitation you have to endure, such as location and industries.