Management faces numerous challenges in determining how to reward employees. They must balance market competitiveness, internal equity, organizational performance and individual performance considerations. Notably, issues of “fairness” underlie each of these areas. No matter how sophisticated the design, reward programs, policies and practices that are not perceived as fair will not successfully attract, retain and engage employees.
Management faces numerous challenges in determining how to reward employees. They must balance market competitiveness, internal equity, organizational performance and individual performance considerations. Notably, issues of “fairness” underlie each of these areas. No matter how sophisticated the design, reward programs, policies and practices that are not perceived as fair will not successfully attract, retain and engage employees.
Although we know that employee perceptions of reward fairness are strongly related to employee attitudes, behaviors and performance, it is less clear what impact reward practices have on these perceptions. In other words, do certain types of reward programs or policies more closely align with perceptions of fairness than other programs or policies?
