Category Archives: Economics

Less Work for Less Pay – Why Don’t Companies Offer The Option?

You are a salaried employee in one of the high pay, high hours, high stress careers and want to slow down a bit. You are happy enough with your company and your job, you just want to do less of it and have time and energy for other things. And you don’t need all that money they are paying you. You want to trade some of that high salary for additional time.

You’ll be a happier, more productive employee who’ll be less likely to jump ship and the company will benefit accordingly. It makes perfect sense, so why is it so rare? Are companies just stuck in the stone age?

I’d like to focus on just one aspect that seems to blindside people asking for less work for less pay.

A Multiple Choice Question:

You are making $160,000/year and are working 80 hours/week. You want to work 40 hours/week. What is a fair annual salary at these reduced hours?

a) $100,000
b) $80,0000
c) $60,0000
d) $45,000

My guess is that most employees looking for reduced hours would say (b) with some selecting (a) or (c). For a company faced with this question the answer is generally (d), sometimes (c). Continue reading Less Work for Less Pay – Why Don’t Companies Offer The Option?