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10 Minute Guide to Motivating People by Nancy Stevenson

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The Importance of Compensation Equity

In psychology, there is a whole set of equity theories of motivation. One key figure in this school of thinking is J. Stacy Adams. Adams states that it is human nature to compare ourselves with others. We compare our looks, our cars, and, most importantly, our salaries with those of our peers. The perception that there's an inequity in our compensation at work might seriously impact our motivations for performing.

Plain English

Equity is the state or condition of being just, impartial, and fair. Inequity suggests an imbalance or lack of justice.

Think about it: Does it sometimes seem as if your Human Resources department spends most of its time making sure that no one receives special treatment? It sounds ...

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