Walker Information recently surveyed employees in thirty-two countries, and determined that employee engagement/commitment was most influenced by trust, concern for employees, fairness, and care (Frank, Finnegan & Taylor, 2004). When employees felt procedural justice in organizations was fair, their level of engagement was higher (Saks, 2006) including approbation of supervisors (McFarlin & Sweeney, 1992)
If employees are fairly compensated, turnover may be reduced, which lowers replacement (including training) costs (Fitz-enz 1997). It is known that outcomes, both at the organizational level, and at the employee level, are impacted by compensation (Rasch & Szypko, 2013)
). Impact of Pay Fairness on Employees Employee commitment ('engagement') is arguably associated with: valued and meaningful work, workload that is sustainable, justice and fairness, supportive community at work, feelings of control and choice, and appropriate reward and recognition (Saks, 2006)
The best interests of companies are also served by fair wages. Considerable research has shown that companies having an engaged workforce tend towards high performance levels on a variety of metrics addressing organizational performance (Salanova, Agut, and Piero 2005; Harter, Schmidt, and Hayes 2002)
When processes for decisions are unclear, trust is damaged and once again engagement is decreased. Research has shown that distributive justice (perceived fairness of reward sharing) correlates strongly with employee job- (Schappe, 1998) and pay-gratification (McFarlin & Sweeney, 1992), Leadership efforts should show sincere concern (Kontakos, n
Considerable research has shown that companies having an engaged workforce tend towards high performance levels on a variety of metrics addressing organizational performance (Salanova, Agut, and Piero 2005; Harter, Schmidt, and Hayes 2002). Factors that are not normally considered are that happy employees are less stressed; lower stress results in an improvement of both physical and psychological health; these result in better employee focus on the job as well as fewer absences from the job (Spector, Dwyer, and Jex 1988; Spector and Jex 1991)
Considerable research has shown that companies having an engaged workforce tend towards high performance levels on a variety of metrics addressing organizational performance (Salanova, Agut, and Piero 2005; Harter, Schmidt, and Hayes 2002). Factors that are not normally considered are that happy employees are less stressed; lower stress results in an improvement of both physical and psychological health; these result in better employee focus on the job as well as fewer absences from the job (Spector, Dwyer, and Jex 1988; Spector and Jex 1991)