Why Is Your Boss Earning More Than You?
Do you have a boss you admire? Or a boss who clearly makes a lot more money than you do? If your answer is positive, it is likely you would want to be in their position in future. Another thing you should keep in mind is, employment is one of the sources of money, investments could be another. The principles that can make you a better-earning worker can also make you a better earning investor.
Whether you want to increase your earnings from employment or invest in Unit Linked Insurance Plans (ULIPs) and mutual funds, the qualities driving the earnings of your boss will definitely help.
1. Experience & Expertise
Often you find a pretty senior person as your boss. It’s not just because it is so natural; it is also because the experience is a value that cannot be replaced by talent, at least not entirely. Even talent often finds its origins in experience. Ability to mentor, guide and chart out a growth path separates deserving boss (who really earn far more than you) from the rest.
In fact, latest research reports from prominent publications like Harvard Business Review and McKinsey Insights state that, people do not work for companies, but for their bosses. So, if you are working in a firm, and want to work there, it’s not because of (or just because) of the brand, but because of your immediate boss.
2. Clarity of Vision
Bosses are supposed to lead the team. And to lead, they must have a clear vision of the goal, not to mention extremely acute awareness of ongoing things. You’ll find them staying on top of things and priorities with ‘never thought before’ logics (at least sometimes). They can do so, just because they know a little more than you (or your peers) know about the environment.
Clarity of vision also helps them mentor their subordinates into future leaders. Since they can see what may not yet be important or visible to you, they can mentor you for the future, and thus demand better pay.
3. Talent (The X Factor)
There is no doubt that competition exists. If you feel it for your position, your boss’s position can’t be much different. Only those who have some merit ultimately rise the ladder and take the responsibility of leading others.
If your boss is earning more than you, it could be because he is better at achieving those goals and looking after his team than others.
4. Communication Skills
Communication skills are one of the most important leadership traits. Ability to communicate clearly and effectively differentiates leaders from followers. Especially in a chaotic environment where, misinformation is easier to access than facts, ability to communicate plays an important saviour.
Communication skills epitomize the qualification, experience, attitude, thoughts and objectives of a person. So, if you are planning to be able to be in the position of your boss and lead people, communication skills should be your priority.
5. Higher Risks and Responsibilities
In the market, your potential for earning is proportional to the amount of risk and volatility you can manage. Thus, you find the stock investors making a lot more money than fixed deposit investors in the long run (although the risk of losing money is also high). Likewise, in the job market as well, the person capable of managing the higher degree of risk and volatility can command better pay.
One of the reasons your boss is earning more could be his uncanny ability to manage more risk and responsibilities. Again, this is not a skill people are born with, but it can be learned. Often it derives from the awareness of your business and competitive environment.
One thing you can be assured of is, when your current boss started his career, he also must’ve gone through the kind of grind you are going through right now.
Relationship with Investments
All the qualities mentioned above have an uncanny resemblance to the qualities needed for investing. Except, maybe, the communication all other abilities can help you make better investment decisions. However, if you do not want to be that active an investor, you can invest in ULIPs.
ULIPs offer not only tax saving on the invested money; they offer choices of investment based on the risk appetite of the investor. With all investment managed by fund managers with the capabilities discussed above. You can invest and relax, while the fund managers make your money work in the market towards your future goals.