Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Bosses Do Deserve Higher Pay

They're worth 1.75 regular workers: study

By Matt Cantor,  Newser Staff

Posted Aug 26, 2012 3:05 PM CDT

(Newser) – We all enjoy a good gripe session over our bosses, but it turns out middle management may just get a bad rap. Researchers find that an average boss is worth more to the company than an average worker—1.75 times more, to be precise, a figure that matches the salary difference. At the Atlantic, Jordan Weissman is dubious about the findings, calling their logic "somewhat circular." Researchers made their calculations based on the notion that an employee's promotion to middle management stemmed from higher productivity.

But the study also finds justification for the idea of a good boss. Researchers studied nearly 24,000 workers; the subjects were asked to pursue the same task over and over again. Meanwhile, groups of workers switched bosses every four months. Turns out that some bosses did increase productivity compared to others—and if you replaced a boss in the 10th percentile of productivity with one in the 90th, it was like adding a 10th worker to a group of nine, Weissman writes. The secret, according to researchers: Two-thirds of increased productivity was attributable to a boss's ability to teach employees new skills.

Your boss may be deserving of her salary.
Your boss may be deserving of her salary.   (Shutterstock)
« Prev« Prev | Next »Next » Slideshow
My TakeCLICK BELOW TO VOTE
7%
25%
1%
41%
1%
25%
To report an error on this story, notify our editors.
COMMENTS
Showing 3 of 18 comments
LeviSpice
Aug 27, 2012 9:43 AM CDT
I have no problem with bosses making 1.75 times more than your average employee as this article states.  The issue is that even in a very large corporation this would result in the CEO making 88 times the lowest employee (assumes there is 8 levels of corporate, regional, and local management between the 'basic' employee and the CEO).  This is 292 "employees" less than the average CEO pay according to studies earlier this year.  So what is missing from this article is that even under the largest global corporations the average CEO is being overpaid by about 332%.
Hambone4x
Aug 26, 2012 11:43 PM CDT
Why does this article reek of the top 1% trying to get the middle class to split across blue collar and middle management workers? I don't think I've heard anyone say "My supervisor is ruining this country!" It's the CEOs  and the upper, upper management, including ownership, that are causing many problems by not reinvesting in the American worker.
shaboom
Aug 26, 2012 10:14 PM CDT
Noone disputes a boss should make more. But the clowns on Wall Street deserve 7 figure compensation for running the nation into the ground? Your boss deserves a salary 300 times higher than the lowest worker? Pure bullshit.
 

NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   BuzzFeed   |   Cracked   |   Timelines   |   POPSUGAR Tech   |   Business Insider   |   HuffPost Entertainment   |   NewsOne