1. Business Ideas
  2. Business Plans
  3. Startup Basics
  4. Startup Funding
  5. Franchising
  6. Success Stories
  7. Entrepreneurs
  1. Sales & Marketing
  2. Finances
  3. Your Team
  4. Technology
  5. Social Media
  6. Security
  1. Get the Job
  2. Get Ahead
  3. Office Life
  4. Work-Life Balance
  5. Home Office
  1. Leadership
  2. Women in Business
  3. Managing
  4. Strategy
  5. Personal Growth
  1. HR Solutions
  2. Financial Solutions
  3. Marketing Solutions
  4. Security Solutions
  5. Retail Solutions
  6. SMB Solutions
Product and service reviews are conducted independently by our editorial team, but we sometimes make money when you click on links. Learn more.

The Big Secret That Could Make You Unhappy at Work

pay . / Credit: Salary Image via Shutterstock

Here's a good reason not to go nosing around in your co-workers' business. Knowing how much money your co-workers earn could make you a lot less happy at work.

Research from the University of Carlos III of Madrid shows that when a worker's earnings are less than that of their peers, they can end up working more hours in an effort to catch up, which leads to a feeling of unhappiness.

"The effect of others' earnings on my happiness is negative, because I compare myself to them and it makes me unhappy to earn less than them," said the study's author, professor Eduardo Pérez Asenjo. "So I work more hours so that I can earn the same as, or more than, them."

The most likely explanation of the study's results lies in social comparisons, Asenjo said.

Asenjo said businesses should take the research into consideration when trying to keep their employees happy.

"It might be a relevant criterion to keep in mind, when setting salaries, that an employee is concerned not only with what (he or she) earns, but also with what those around them earn," Asenjo said. "My personal opinion is that employees' happiness is not really taken into account in work environments."

One area Asenjo believes needs further analysis is whether the effects of relative income on happiness vary with income level or age.

Asenjo said that if money were everything, eventually the highest earners would stop trying so hard because they had no one to compete with.

That's not happening, however, which Asenjo attributes to the social comparisons that employees make to others around them.

The research was published in a recent issue of the Journal of Population Economics.

Follow Chad Brooks on Twitter @cbrooks76 or BusinessNewsDaily @BNDarticles. We're also on Facebook & Google+.

Chad Brooks

Chad Brooks is a Chicago-based freelance writer who has nearly 15 years experience in the media business. A graduate of Indiana University, he spent nearly a decade as a staff reporter for the Daily Herald in suburban Chicago, covering a wide array of topics including, local and state government, crime, the legal system and education. Following his years at the newspaper Chad worked in public relations, helping promote small businesses throughout the U.S. Follow him on Twitter.