Almost every average to high performance employee captures less than the value they bring. Companies are not going to pay you 100% of your value as that is always seen as bad deal by the company. They want to feel like they're saving. Why else would you need to negotiate comp?

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estearum 17 hours ago | parent | next [-]

Isn't that the subtext? IMO 70%+ seems really really high, especially for larger firms which, by definition, provide a massive amount of leverage to senior leaderships' decision-making.

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lostlogin 10 hours ago | parent [-]

It’s interesting to do the calculation for one’s own work.

It’s obviously going to be flawed unless it’s a very basic job. The peripheral costs are the devil. Eg: Stationary, payroll costs, uniform, software licences, swipe cards, coffee, water, rent.

However mine is an awful lot higher than the CEOs (as a percentage, not in dollars).

	▲	estearum 3 hours ago \| parent [-]
		I don't think the peripheral costs are even the bulk of it. The real value of the company is problem selection, brand recognition, coordination, hiring, and elimination of non-value add problems (e.g. an early stage CEO spends a huge amount of their time managing government registrations, which is later managed elsewhere in the company but not by 99.999% of employees)

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pkcsecurity 17 hours ago | parent | prev | next [-]

It’s not just “seen as a bad deal by the company” - a business can’t give 100% of the value back to the employee because it has this pesky thing called “profits” it has to worry about :)

	▲	lostlogin 10 hours ago \| parent [-]
		That’s exactly the point you’re replying to.

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andsoitis 16 hours ago | parent | prev [-]

> Companies are not going to pay you 100% of your value

Tell us more…

	▲	wnc3141 15 hours ago \| parent [-]
		If at your ceramics firm, you make and sell a mug with a ten dollar margin, if you then require ten dollars of wages for that time, then why did the company bother putting the capital at risk? Not sure if I'm missing a facetious tone