Tuesday, January 26, 2010

Does Hourly Pay Bring Happiness?


New research shows that money makes people happy and if someone is paid by the hour they are even happier. This strange study was done by Jeffrey Pfeffer at the Stanford Graduate School of Business and Sanford DeVoe of the University of Toronto. They studied both British and Americans who were paid hourly vs. salary wages and compared their general happiness. The surveys showed that pay determines the happiness of hourly workers more than it does for people paid a salary.

Pfeffer said that the study showed people who are paid by the hour think differently about money, time and happiness. They think about their income regularly and begin comparing the value of their time to the amount of their happiness.

I find this study rather strange. It was published in the Personality and Social Psychology Bulletin and I haven't read the entire study but there may be other variables that interfered with the conclusion about hourly pay and happiness.

Most low income people are paid by the hour. Are they really happier than the banking moguls who are getting $million dollar bonuses? Do people who work for minimum wage report they are "satisfied with their life" at a higher rate than salaried people? The study says yes.

I think this is a study that needs to be validated.

20 comments:

Anonymous said...

I disagree with this study. What about all the college students that work hard low hourly pay jobs to get through college in hopes of their college degree getting them a higher paid usually salary job? Unless they are talking about a very high hourly pay like in the triple digits,but that is when they usually go to salary. Lawyers can make $400 plus an hour.

Many people who lost their jobs and are having to switch from salary jobs to take low pay hourly jobs and worried about how they will support themselves and their families. It is almost impossible to but a house on an hourly pay job.
It all depends on if you are talking about a physician or attorney hourly pay or minimum wage pay.

Jim Purdy said...

Some researcher must get paid by the hour for doing silly studies.

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Esther said...

People in the US have forgotten to equate anything besides money with happiness and success. I live in semirural Mexico where certainly everyone wants enough money for basics, and some left over, but basically, community approval and family and friends and achievements of various sorts, not necessarily money-related, are what make people happy.

ERP said...

The useful thing to do would be to compare two people with the same job and same pay where one is paid hourly and the other salaried over a year. I am payed hourly with an incentive bonus quarterly. I personally would rather have a salary so my paycheck does not jump all over the place depending on what sort of shifts I am working. Still, if I stay an hour late after a shift and am still working, I get paid another hour's worth which makes you feel like your overtime is more worth it....

Anonymous said...

The article actually makes sense to me. If you look at the most stressed out professionals, in recent columns, lalately it it is teachers, then medical professionals. Salaried individuals are most more likely, than hourly (dependent upon occupation), to do more work. If think about the busy pcp and his nurse admin., the nurse may make more per hour because she/he can go home at the end of the day, and turn off the work. The doctor can't not. Same thing with teachers, those in the education field often have stacks of papers to grade, tests to make, parents to call, etc. The classroom assistant can come in at 8 a.m. and leave at 3:30 p.m. without guilt of not taking something home.

Rao said...

I strongly agree that so many people are paid on hourly basis, this is the best way to earn passive income which is more than their regular salary.

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Johnny De Frances said...

I beleive it all depends on the individual. I find that many people get used to being paid a certain way and are set in their ways. Many times people are put on a salary because many employers want to save money and it can backfire for the employees by being forced to work more hours than they would if they were being paid hourly. So in cases like these it would make sense to be paid hourly. Unless you have a contract protecting you from being overworked you should seriously consider the repercussions of being a salaried employee. Personally I prefer commission based jobs since there is no ceiling to how much I can make

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cheap viagra said...

Hourly pay brings great happiness because we need the money to eat specially when we don't earn a lot of money, maybe other people can think he opposite so that's my way to think.m10m

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Yes i think peoples will happy with it....

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