New research by a group of economists and psychology researchers at the University of Warwick reveals that our rank position within an organisation has a bigger effect on our happiness within that job than the happiness generated by our actual level of pay. In short being top dog makes us happier than simply getting top dollar.
The researchers, University of Warwick Economists Professor Andrew Oswald and Dr Jonathan.Gardner (Joanthan now with Watson Wyatt) and University of Warwick psychology researchers Professor Gordon . Brown and Jing Qian studied data from 16,266 individuals from 886 separate actual workplaces, and also carried out two further psychological experiments. They presented their findings recently to a conference at the Brookings Institution in Washington.
The results from the analysis of happiness, pay and rank data from the 16,266 individuals found that the level of actual pay, or the average level of pay in an organisation, had very little effect on how happy people were with the level of respect they had within that organisation. It also had little effect on how happy people were with their achievements within that organisation."
Andrew Oswald | University of Warwick
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