Have you ever heard of Equity Theory before?
I hadn’t until a couple of years ago, but it makes a lot of sense.
Equity Theory argues that what motivates employees is workers’ belief they’re treated fairly. When there’s a perceived unfairness, employees or team members will adjust their behaviour accordingly.
Understandable, right?
So the principle is that if someone is in a similar role but on a much higher salary and doing way less work, a member of staff will begin to stop putting in as much effort on the basis that they are not being treated with the same level of courtesy, appreciation and ultimately, fairness.
Let’s put this into terms backed with data, so you get my drift.
For example, Office for National Statistics data shows that in 2021, the UK’s gender pay gap rose from 14.9% to 15.4%. This means, on average, women earn 15% less than men per hour. Equity theory says this pay gap translates into a motivation gap.
This means that if there is a clear difference in equality, there will be a clear difference in motivation to perform. It’s that simple.
In my opinion, equity could not be important in the workplace, in my workplace, in any workplace.
Not only this, but I personally feel if people are going out of their way to go above and beyond, they should certainly be recognised for this. Whether this takes the form of compensation or recognition or further opportunities, this would depend on the situation, but either way – it needs to be acknowledged.
With my main business operating as a sales organisation, it’s vital that our processes, structures and policies support equity in this respect. For instance, so that incentives are accessible to all.
It would be of no benefit to me or my business to fail to acknowledge the effort and endeavour of my team, so why would I make a conscious decision to choose not to?
If there were to be a policy or process in place within my business that would cause concern on the grounds of equity and therefore, demotivate my team, this would be so counter-productive on so many levels.
Whilst I appreciate that other workplaces may not be able to avoid this, for me, it just doesn’t wash.
I feel that, as a Business Owner, I have an innate responsibility to provide equal opportunities to my team in every respect. From salaries, to incentives, to progression, to development, to opportunities, to roles, everyone has access.
That’s how to motivate – and build – a great team.
What are your thoughts on equity in the workplace?
