Insult Factor
Samuelson’s Economics has an entire chapter worrying over wage rates and the efficient allocation of labor. Why do people change jobs? Samuelson would like to tie it to capital allocation, work duration…he doesn’t mention the insult factor. I know a guy who loved his job. He was proud of the job and the work he did. When he learned that someone else made more than him, it was too much. He quit even without another job to go to. Nothing else had changed. It was simply that he felt insulted. Managers fail to understand the insult factor. Headhunters understand it. Unions understand it. Customers understand it. Why go through the folderol of a manufacturer’s rebate? If you are getting points, then someone else is getting ripped off. When the price at the aisle doesn’t match the register, you feel insulted. Bombing me with ads texts and emails after I have bought the product is discouraging. When a headhunter offers a better deal, it feels like your own company doesn’t value you. Co...