Workers want equity
in the workplace

They possess the necessary abilities to do their jobs well, and they are willing to constantly improve their skills given the demands of technological innovations and changing consumer preferences.

Good employees also have the tools necessary to do their jobs well. Tools can include computers and cell phones, and they can also include advanced knowledge available through management-funded training programs. Clearly, managers are blessed if they have employees who have all these desirable qualities. To continue their task of motivating these employees, managers now have to be concerned with workplace equity.

Equity refers to a balance between the resources employees give to an organization and the benefits they receive.

Employees invest their knowledge, skills, time, energy, and other personal resources into their organization. They then receive benefits in the form of salaries, stock options, overtime pay, promotions, status-bringing titles, and perks such as corner offices and parking privileges.

Employees calculate the resources they invest, and then try to develop an estimate of the benefits they should receive. They can do this by making comparisons with others in the community who have similar jobs.

People argue to themselves that if they are auditors in an accounting firm and have brought in a certain number of clients, then they should be paid the same as other auditors with similar job accomplishments.

Sports fans are very familiar with these considerations of equity. Every year, there is media coverage of professional athletes who had very good years. They had contracts that called for an average salary at the beginning of the season, but they gained more yards, caught more passes and scored more touchdowns that many others players with better contracts. So what do they do? They ask to be treated more equitably. They request that their contracts be renegotiated or, if they are free agents, seek higher salaries on the open market.

One of the most interesting aspects of the equity calculation process is that people compare themselves with alternatives that are consistent with lifestyles that they find reasonable. If auditors prefer living in a medium-sized city in the Midwest, they do not make comparisons with colleagues in New York City or San Francisco.

They make comparisons with auditors who live in cities of about the same size. Many people in Hawaii are familiar with this comparison. In assessing the perceived equity of their salaries, they don't compare themselves with people holding down similar jobs on the mainland. Even though they know that the mainland jobs may pay more, they don't want to live on the mainland! They want to live in Hawaii, and so they compare themselves with others in their home state.

If the hard-working employees discussed in this article feel the benefits they receive from the company are equitable, then they experience a sense of job satisfaction. As a result, they stay with their companies longer and can engage in organization enhancing behaviors such as mentoring younger employees and joining professional associations where they can obtain cutting-edge skills. But the complex task of motivating workers is not yet complete. Employees always want more from their organizations, and this will be the topic of next week's column.