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We all know that not wearing clothes considered appropriate for the dress code can be a bad thing. Your typical business-casual dress code probably frowns upon wearing jeans, tank tops, black bra with a white shirt, etc...
It depends on the company, on what it dictates. From my perspective,formal clothing is unimportant if you are low towards mid level in the company. Things like "dress not for the job you have but the job you want" are worn out,redundant lines of thought from the last century.
As long as you dress decently and you do your job, clothing should be the least of your or your companies concern. Productivity is not measured by how ironed your shirt is. Unless you work in a specific environment where specific clothing is required, packaging or handling sensitive products and so on, the formal clothing in my eyes shows that you are simply trying too hard. You are desperate for a promotion,you are desperately seeking attention.
But hey that is just how I view the world, others might have different opinions.
