Inequity & Underreward.
There’s a name for that feeling you have when you’re working as hard as you can, yet receive absolutely no recognition compared with your peers.
That’s resentment, and it occurs when you perceive that you have been underrewarded for your efforts.
If resentment isn’t promptly addressed by leadership, it will build exponentially, slowly eroding your motivation and morale. Eventually your productivity will suffer. Suddenly, resigning seems like a great idea, a relief from the grinding stress and disappointment of trying to stick it out, hoping you will be noticed, or even supported by leadership.
It’s a situation that is all too common in the workplace, particularly with leadership that is not effectively trained in employee engagement. Your need for equity is not being ignored on purpose, leadership is rarely equipped to recognize inequity in the workplace. While it is still unfair, it should provide some comfort to know that it’s not a You issue, it’s a Leadership issue.
Perhaps more than any other model, equity theory, which John Stacey Adams developed in 1963, came closest to explaining workers' motivation in the context of whether they perceive they are being treated with fairness. (Skiba & Rosenberg, 2011)
Adams’ equity theory views motivation as a product of the individual’s perception of their rewards and efforts as compared to the rewards and effort of their peers, which allows the individual to consider whether or not they are receiving equitable treatment in the workplace.
The consequences of ignoring workplace inequity.
This is a very large piece of what generates workplace motivation. Being underrewarded for their efforts by management is likely to generate one of two results: one, employees will begin reducing their efforts significantly to match their perceived monetary underreward, or they will request an increase in pay to match their perceived efforts. “If equity cannot be restored by either decreasing inputs or by increasing outcomes, workers ultimately will leave their jobs,” (Skiba & Rosenberg, 2011). Lack of equity is the primary reason that employees feel underrewarded for their efforts.
Is equity only about pay?
No. Adams’ equity theory has been applied to more than just financial compensation. The totality of the employee’s experience at work must be taken into consideration to truly determine equity of employee experience. Resentment over inequity can be caused by a multitude of issues—perception of unfair pay, racial microaggressions, sexual or verbal harassment, etc. Anything that makes the workplace an unequitable one for an employee will build resentment over time.
For example, an employee is paid exactly the same as her peers for doing the same job. At first glance, this appears to be equitable treatment. But what if that employee is experiencing daily racial microaggressions at work? Could her work experience really be termed “equitable” in comparison with her peers? Over time, she may quit, despite being paid well, with leadership never having understood the real reason behind her resignation.
-The Penguins
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