#123: Pay a little more

People evaluate fairness at work by comparing themselves with others. Specifically, we compare the ratio of what we put in and get out to the ratio of what others put in and get out. In other words, we compare our performance and reward with the performance and rewards of others.

We perceive it to be fair if the two ratios are approximately equal. The problem, as is so often the case, relates to perception. Fairness is a matter of perception and individuals can perceive inequity if they feel under-rewarded and if they feel over-rewarded.

Here is how a manager can capitalize on this fairness-perception. You can increase your people’s performance by rewarding them slightly more than what they believe to be fair. Research has shown that those people who believe that they are over-rewarded tend to be more productive than people who perceive themselves to be under-rewarded.

Please, Sir, may I have some more?


I’m james@nonsenseatwork.com

Copyright: 2007 James Henry McIntosh

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