I put this in IMHO rather than GQ because I know it will involve lots of anecdotes and I am more interested in those rather than aggregated statistics. Lots of people think that ‘the company ladder’ is like a real ladder where you move above others in all ways including pay. That isn’t necessarily true though. Everyone has a boss to some degree and it is fairly common for that boss to have management skills but not the same type of talent as their in-demand employees so they make less money than they do.
Here are some examples:
Engineers and IT people frequently make more money than their bosses if the company chooses to have non-technical managers managing them.
Sports coaches, especially football and baseball have managers that make a fraction of the top level players.
Surgeons and other specialist doctors are still affiliated with hospitals and can be reprimanded or fired by much lower paid hospital administrators.
People that work in top level entertainment ranging from movies to syndicated television shows still have much lower paid people that they have to answer to.
Hourly manufacturing employees sometimes have to turn down ‘promotions’ because they would have to take a pay cut once overtime is factored in.
What are your stories and experiences with this type of thing?
Top level salespeople for high dollar products aren’t something I didn’t think of off the top of my head but it is true. I have personal experience with them especially in the Big Pharma and software world. The best ones make insane amounts of money but it is a perilous career path. Most of them are extremely smart and unusually attractive women in their 20’s - early 30’s. Once they get older, their numbers start to go down and they get gently ushered out to make way for the newest batch. The ones that have good management skills get retained for those because they know how the game works but they still don’t generally make as much as they once did. It is sexist as all hell but that is the way it works.
I know one Big Pharma sales rep that made it to 45. She is naturally gorgeous but also has to spend a whole lot of time on her appearance these days even though she could easily pass for early 30’s.
I’m a painting contractor. Sometimes shit happens, and the people who work for me make more than me (ie, their regular hourly wage) while I take it in the teeth on a job. IME, this is not uncommon in the trades.
It’s fairly common in government.
The elected people at the top often have their salary set by law, and it’s often difficult (both legally and politically) for them to vote raises for themself. But in hiring people for the top level jobs, they will have to pay near market rates.
For example, in my county government, there are quite a few people who are paid more than the elected County Commissioners: top level doctors in the county hospital system, senior deputy layers in the county attorneys office, top level IT staff, executive administrators of the county, etc.
It doesn’t have to be top level salespeople. There are lots of non-glamorous, industrial-type companies where anonymous sales reps are booking millions of dollars per year. It isn’t unusual for them to earn several hundred thousand per year, while their managers are making less.
Of course, if they lose an account, they’re out the door.
Especially if you include OT. Homicide detective in a big city is a great area for racking up OT, as is a cop on permanent overnight shift, because court is during the day & (typically) all OT.
In Canada we have tradesmen in many industries other than construction and they all usually make a higher annual wage than their supervisors. Inter-provincial trade tickets are earned during a formal four or five year apprenticeship program that includes classroom training as well as on the job training. At the end of the program, they become Journeymen and may command top pay rates. Journeymen tradespeople (some are women) are much in demand in the mining and forestry industries as well as in crown corporations such as the ferry industry.
When I worked in a movie theater years ago during Superman II’s run the (hourly) assistant manager was getting bigger paychecks than the (salaried) manager thanks to overtime even though the manager worked more hours.
University presidents usually make really fine money but it there are many states that the football coach of the major university is the highest paid person of all by an extreme margin. Eight states pay their head coaches for their flagship football programs more than 10x more than President Obama. The average is over $4 million a year. Let’s not even discuss the governor’s salary or the president of their university because you are talking about a compleley different league there.
It was true for me when I worked for the New York state government. I was a high-ranking employee with a lot of seniority who still worked for hourly wages. So I got paid sweet overtime whenever I worked extra hours.
I was offered a promotion several times but the next job up would have put me on a yearly salary. And starting over at a new level would have dropped me back down to the bottom of the seniority lists. I figured it would have been about a ten percent cut in take-home pay.
When I worked for a corporate restaurant (never again) the managers made approximately $9/hour - it’s been a few years - while the servers would often walk out with much more than that in tips. If you factor in benefits and the number of hours worked per week then they might have made more than the servers per pay period, but probably not per hour.
Now that I tend bar at a small locally owned bar that’s not the case. I just accepted a position in management and I’ll be almost doubling what I made last year as I’ll have salary and bartending shifts. I already had benefits, so that won’t change for me.
My stepson is a waiter. He works for tips and it is not unusual for him to make more than the manager, who is on salary. I should mention that this is at a very high-end restaurant, where dinner for two on the low end can run a couple of hundred bucks easily.
I worked in sales for years at a lowly pest control company. One fine day the regional manager came to our branch and took me out to lunch and asked if I wanted to be a branch manager because my boss had put in a notice. I said “Sure how much does it pay?” When he told me I assured him I wasn’t interested in moving down to only about 60% of what I had been earning for the last couple of years.