Conventional wisdom says that paying employees well goes a long way toward making them feel like they’re treated fairly.
Employees don’t consider pay or salary increases as the top factor in determining whether they are rewarded fairly, according to a new study by WorldatWork and Hay Group. Some of the key findings:
Employees care (a lot) about career development. When asked about fairness ofin their organizations, employees point to “allocation of career development opportunities” as their No. 1 concern. Reason: They crave job growth and responsibility. Other fairness concerns in the top five: merit increases, base pay amounts, nonfinancial recognition and employee development/training.
Employees care more about internal fairness than external. Translation: Kevin in accounting is focused more on how his compensation and rewards compare with colleagues down the hall than down the street.
Fairness complaints are more frequent in larger organizations. Main reason: Small organizations have less formal reward systems that provide more of a personal touch.
Individual performance is the key. Compensation professionals say employees’ individual performance is the most important factor in determining how compensation is distributed fairly.
The report suggests the following ways to improve the perception of compensation and reward fairness:
- Establish effective ways to assess individual performance for merit increases, promotions and advancement. As the report says, “Employees are more likely to be concerned about fairness issues if individual performance is not rewarded or recognized.”
- Implement a strategy that rewards employees in similar jobs equally.
- Communicate to employees the reasoning for rewards through several channels, including managers.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/28604/thats-not-fair-equity-requires-more-than-fair-pay "