As a career counselor, I often have clients who tell me that they feel they’d be much happier if they had a job that made more money. Fortunately, there have been many studies done on this topic so there is ample research that can be helpful if you are navigating this topic. Please read below to learn some takeaways from this research that will hopefully be helpful as you consider this topic and how it affects your career.
The number one reason people leave their jobs is their relationship with management
Some of my clients are surprised that leaving a job because you are unsatisfied with pay does not come in as the number one reason people leave their jobs. Rather, this is a testament to the fact that a bad manager can make one’s life miserable at work. Unfortunately, many managers get promoted because of their job performance which is not correlated to how good they are as a manager. As a result, I tell my clients to try to get a really good feeling about their manager in interviews to have the best chance of succeeding in their job.
After you make enough money that you are not stressed about finances to provide for your basic needs, marginal happiness does not increase when you make more money
Research shows that it is important to make enough money so that you can fulfill your basic needs and not be stressed about having enough money to eat, pay your rent/mortgage, pay for gas, etc. That number will vary based on where you live and how large your family is. For this example let's say that number is $60,000 a year. To be happy it would be very important that you make that $60,000 a year. After that research shows that you will not be marginally more happy if that $60,000 were to increase to $100,000 or $150,000 a year. With all that being said, there may be some people who do find more happiness in making more money but that would be an exception. This research points to the fact that you may be better off making $60,000 a year doing work that you enjoy versus making $100,000 a year doing work you can’t stand which makes you miserable.
Experiences make people happier than items
Research has also shown that experiences make people happier than purchasing items. In practical terms, this would mean paying $2,000 to go on a nice vacation would yield more happiness than paying $2,000 for a designer handbag or designer clothes. This is because experiences create memories that can be cherished and thought about long after the experience is over. To go back to our example with travel, can you remember the best vacation you’ve ever gone on years after that experience? You can look at photos of the beach or Disney World and derive happiness. Such pictures might even be hanging up in your living room or bedroom to evoke nostalgia and happy memories. If you contrast this to a designer handbag, research shows the happiness evoked from that is fleeting, so looking at that handbag will not evoke the same level of satisfaction as thinking back to your favorite vacation.
The correlation between money and happiness is something important to consider when thinking about your career. Research has shown that the number one reason people leave their jobs is their relationship with their manager. Additionally, having enough money that your basic needs are met is very important and experiences make you happier than items. Career counseling can help with discussing this topic or any other topic related to your career. Contact me today for a free consultation.