Fairness Is An Umbrella Term For Monetary Income, Deferred Payments, Non Monetary Rewards And Other Fringe Benefits

All employees analyze their environment and strive to be recognized and rewarded for their hard work and dedication they put into the company, in a word they are seeking justice. Justice can be defined as a person receiving what they feel they are entitled to and if they do not receive what they deserve, the situation may boarder on injustice. Unfortunately in today’s society justice and appreciation are not given out to all those deserving (Pinder, 1998). Within the Equity theory there are three justice theories. The first of which is distributive justice, this touches on if the referent feels that the outputs are fair that are given to the employees. This comes into play

Below this graph is showing the way the system is set up. The job is yours based on gender, age, spouse, family structure, and levels of education. In the first column of the graph, it explains how the educational quality decides salary marking. It simply means that your educational status decides the income you receive based on your level of skill. The second column of the graph explains how ethnicity of women portrays a huge part in the salary gap. In the third column, it shows the rate of hiring in the job industry. The fourth and final column of the graph shows how well family structure plays a part in jobs. Those who have both biological parents do better than those who live in single parent homes.

Rather, Equity, and the sense of fairness which commonly underpins motivation, is dependent on the comparison a person makes between his or her reward/investment ratio with the ratio enjoyed (or suffered) by others considered to be in a similar situation”(Balancing Employee Inputs and Outputs).

carefully planned out and considered, the total closure or failure of the organization could be at hand in the near future. In our modern age, employers know that salary is not the only factor that should be considered and that salary alone will not lead to better or more highly profitable workers alone. This is why compensation planning is important and why pay should have some connection between performance and compensation. This is why the human resources department should consider many monetary and non-monetary factors when considering how to properly compensate and motivate employees (Dessler, 2013).

Differences in the employees’ pay and compensation can be a form of discrimination depending on whether it is guided by job position, experience, and qualification of the employee or not. Occupation differentiation and differentials in earnings is not necessarily a form of employment discrimination. However, the case in ABC Corporation which had led to disparate treatment of employees in terms of payment had created a form of unintended discrimination and trying to correct it cannot raise ethical conflicts between the employees (Clarkson, Miller & Cross,). Ethics are based on the principles of doing right or wrong, god or bad in a certain situation. In this case, ABC Corporation is trying to honor its moral obligation by doing what is right-balancing the pay of its work to solve differences in their pay. This does

The term compensation refers to all forms of financial returns and tangible benefits that employees receive in exchange for their time, talents, efforts, performance, and results (Bernardin & Russell, 2013) Presumably, employees are motivated by the compensation they receive in all combinations to include their benefits packages. Naturally, employees want to be able to take care of their family to include having good medical coverage and other related benefits. Equity is said to occur when a person perceives that the ratio of his outcomes to his inputs is equal to other’s outcome/input ratio (Salvendy, 1976). Of course, employees want more money, and companies want more work out of each employee. With the cost of benefits like health insurance continuing to rise, companies have to take the higher cost of benefits into consideration when implementing pay

Even after accounting for education, skill level, location and other factors that contribute to occupational inequality, there is still a missing piece of the puzzle of racial wage gap. The piece is the individuals race itself. Differences in wage solely due to the individuals race itself is discrimination and it is widely present in the modern work environment. A study conducted by Grodsky and Pager in 2001 found that just about 50 percent of the wage gap between blacks and whites is explained by differences in education and residential location. Another 20 percent is attributed to difference in occupation and position level. The remaining 30 percent of the wage gap between blacks and whites has no clear source other than being solely due

“I have mentioned the way the hiring process seems designed, in some cases, to prevent any discussion or even disclosure of wage- whisking the applicant from interview to orientation before the crass subject of money can be raised. Some employers go further; instead of relying on the informal “money taboo” to keep workers from discussing and comparing wages, they specifically enjoin workers from doing so.” (207)

When making compensation decisions, whether it is internal or external, comparisons must be considered. However, employers must carefully balance pay structures, because internal and external comparisons may not converge. Therefore, employers may differ in the way they place priorities on internal and/or external comparison data when they are developing pay structures.

This ‘democratization’ of salaries works in two levels, first affecting the environment and the conditions within an organization, as wages of the lowest paid individuals’ is increased, raising their standard of living and also closing the gap which may be present between them and their colleagues and managers, this effect mainly groups which have been always discriminated due to their background, as they belong to groups such as women, natives and other visible minorities as their compensation differentiate from a Caucasian white male. Moreover, as compression occurs within union members, it also affects other high paid individuals, specially relating to firms which are unionized, as CEO and other executive’s staff salaries are tend to be lower than non-unionized organization, pointing the result of union existences will decrease and reduce wage differential.

Despite the fact that a majority of states have enacted some form of pay equity statutory provisions, statutory language differentiates those states in four significant ways. Some of these differences incorporate parts of the standards set out in various pieces of the aforementioned federal legislation. The first two categories paint a broad picture of the context of the pay equity landscape in their respective states. First, some statutes feature provisions specifically tailored to wage discrimination on the basis of sex, while others include sex within a list of characteristics that employers in those states are prohibited from using as the basis for wage discrepancies. Second, some state statutes apply to all employers, while others apply only to private or only to public employers.

When people go out into the real word they expect to be treated fairly, but sadly, in other parts of the world there are individuals being treated as if they’re trash, in spite of the right of equality. People have different perspectives on the interpretation of equality. Some might describe equality as justice; others might say equality is required from everyone. Regardless of any way equality is reworded, it’s still a right entitled to everyone. Others might argue that we have no control over the things that go on in other places or that we’re not to blame for the way people treat each other that could be reasonable, but why isn’t equality treated more like a law? If people took this right more seriously then we would be at

Some organizations are unwilling to show their reward systems and pay policies (Lawler, 1995). Many Human Resources professionals believe gender pay gaps to be resolvable through the monitoring of pay levels and communication (Report on Salary Surveys).Greater pay transparency has been a great benefit to the board, employees and managers as they now know what is happening across the business and they are able to confidently justify their actions (Commission Policy Report).All market-related supplements are recorded and reviewed separately from basic salary to ensure openness and transparency. Regular research market rates within the various labor markets in which they operate is undertaken improving transparency would also help to improve talent development, as employees would be able to see what they could earn if they wanted to move to another division and upgrade their skill set. (Commission Policy Report).

In the UK today 22% of the entire workforce are low paid with the minimum wage for over 21’s being only £6.50 per hour (Lloyd & Payne,2012). Consequently mainstream political parties aim to promote in today’s culture the idea that people who work hard can progress to better jobs (Lloyd & Payne,2012). Moreover, there are barriers which prevent the prospects for improving pay at the lower end of the labour market. Thus this essay will examine and evaluate the prospects for improving pay and recognizing the barriers which hold back people from moving up in the labour market. The first part will assess internal labour markets and how affective they are at improving pay, the second part will discuss trade unions and how affective they are at

Treating employees fairly in relations to pay is important for both employee and employer. The Equal Pay Act 1970 was introduced to ensure that women and men are paid the same for the same role. Organisations that actively treat all employees the same in relation to pay promote retention of employees. Employees won’t be underpaid for the work they do in relation to a colleague in a similar role, employees won’t feel discriminated against thus performance of work isn’t effected. The