When you work for a company, you’re likely to encounter the productivity paradox, which can be summarized as follows: The more work you do, the more work you get. Being more productive, while beneficial to your company, is likely less beneficial to you. Ask most bosses if you can work fewer hours as long as you get your work done and the answer will probably be the same: if you can get all of your work done in fewer hours, think of all the extra work you can get done if you put in the full amount of time. The trouble with many jobs is that there is not a direct correlation between the effort you put in and the pay that you get out. Working twice as hard won’t get you twice the money and may just serve to raise expectations.

That’s why extra time may be better spent building alternative income sources. Whether you start a business, take on freelance work, or even just spend more time researching investments, activities that more closely correlate your compensation with your added effort may be the way to go. I’m not suggesting that you slack off at work or give them less time than they pay you for. You owe your employer an honest day’s work for your daily pay. Anything less and you run the risk of losing the security and flexabilty that your main job offers you. Intangibles of your job such as health insurance, retirement matching, profit sharing, etc should not be undervalued either. Long term productivity benefits such as promotions, raises, bonuses, etc should certainly be considered as well.

It’s when you are looking to make a little extra money that the productivity paradox comes more into play. The first 40 hours of your work week (or whatever your standard requirement is) may be best served at your job, but after that a stronger case can be made for focusing your energy elsewhere. If you were considering putting in an extra 10 hours a week at work, you likely would be better off using it to build an alternative income source instead.