Worth: What Are You Worth?

Boy, that's a loaded question.

One could write volumes; actually many volumes have already been written about a person's worth, value of a human life, achieving one's ambitions and all sorts of variations on these topics.

But I want to focus on a more objective answer to the question, not the subjective. Because it comes up all the time: candidates are always making the comment that "I feel I'm worth X dollars" etc, or "I'm worth more than I'm making".

In economics I remember the discussions around the 4 P's of pricing, product, promotion and place. The concept applies to the "price" (or value) of a person or employee, in economic terms.

Just like a glass of water might be free, or worth nothing, from a city water fountain, and worth a man's life savings if he's dying of thirst in a desert, a person's worth varies according to place, time, circumstances, etc.

What I'm saying is that the candidate comments about being worth more, etc are nonsense, or rather sort of irrelevant. We're all worth more or less depending on the situation, but in career terms, you are worth what you are making right now. You might make more later, or less later. But right now, you are worth what you are being paid, because you have accepted that situation. If you haven't found someone else to pay you more for something you'd accept doing, then you are worth what you are getting.

It's not hypothetical question. If you find another job and are there making more, you are now worth more. If you are fired a month later, you are now worth zero for the moment. If you can't find anyone to pay you what you think you are worth, go into business for yourself and see if you can make what you think you are worth.

Everyone tends to view their worth in terms of some sort of imaginary perfect world scenario. For that matter we tend to view the worth of our tangible possessions that way also. We tend to think our houses are worth more than the agent does (we don't see the dirty carpet, walls that need painting, etc., we just know what another bigger nicer house in the neighborhood sold for $100k more than what the agent is telling us to list ours for). Same with used cars; we usually set the price based on excellent or near excellent condition, but eventually end up selling for something less... usually.

Just because you made $150k a few years ago during the boom, and got stock options, etc, while you were working 70 hours a week and traveling 3-4 days/week, doesn't mean you are worth that when you've moved from San Francisco to Memphis and now have 2 small kids, want to work 9-5 and be home in the evening.

Just because someone else with a somewhat similar background is making $40k more than you doesn't mean you are worth the same.

Our expectations tend to rise easily, and adjust downward slowly. Which is a good thing in some ways since it means we tend to constantly strive for more, which is really the basis of our entire economy. Just don't let an unrealistic view stand in the way of a good new situation, or satisfaction with one you already have.

On the other hand, if you sincerely believe you should be making more, then find another situation and prove it. That's what recruiters are here to help you do. But recruiters will be very selective about the use of their time. We pay close attention to what WE think you're worth in the marketplace.


And another thing; be cautious of squeezing every last dollar of compensation out of every place you go. That's fine if you deliver more than the boss expects on a regular basis, because then you've got additional growth potential. But if you're getting pretty much the max that your worth, and the max that you can get, someone else who is delivering more for the money is more likely to be kept around when times get tough and the boss starts looking for places to make cuts.