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Why is a sense of fairness important to employees and how to measure it?

  • Martina Udovičić, voditeljica organizacijskog razvoja i savjetovanja
  • 06. December 2024.
  • 9 min read

Imagine the following situation: two employees are doing the same job, but one of them receives a better reward. How would you feel if you were in the unfavourable position of the employee who received the lesser reward? It seems that such situations still disrupt the atmosphere in some work environments.

Sensitivity to injustice is a deeply ingrained feeling

This scenario reminds us of a famous experiment on the perception of fairness conducted in 2003 by Frans de Waal and Sarah Brosnan with capuchin monkeys. In the experiment, two monkeys performed a simple task—they had to give a pebble to a person and, in return, received a reward. Initially, both received a cucumber as a reward, but soon one started getting grapes, a much more desirable treat. The monkey that continued receiving the cucumber soon began to demonstrate frustration—throwing the reward, refusing to cooperate, and showing anger. This reaction points to a deeply ingrained sense of fairness and sensitivity to inequality.

Humans also react to the perception of injustice—especially in the workplace. When employees feel underpaid or undervalued compared to others for the same or similar work, their motivation, engagement, and productivity decrease. A sense of fairness is a fundamental prerequisite for creating a harmonious work environment. As the monkeys in the experiment showed, the sense of fairness is not just a moral issue but a fundamental driver of cooperation and trust, both among people in general and in business environments.

The perception of fairness, equality, and employee inclusion can be measured by  organizational climate and employee engagement survey. This examination provides quantitative and qualitative insights into employee experiences and represents one of the key HR processes conducted by organizations regardless of their size or industry. As many as 20,000 evaluations of HR systems conducted within the Employer Partner project show that surveying employee satisfaction has no purpose if the action plans based on the survey results do not address the right issues.

What can organizational climate and employee engagement survey reveal?

Measuring organizational climate and engagement provides insights into employee perceptions, including their satisfaction with transparency, equal opportunities, and fair rewards. For example, our 2024 research on organizational climate and engagement, which covered over 50,000 employees from various organizations, found that companies that regularly conduct these surveys followed by the implementation of targeted action plans see an average increase in employee satisfaction of 10%, a productivity increase of 10 to 15%, 15% lower absenteeism, and 20% lower turnover. These effects of increased employee satisfaction and engagement result from creating a better and fairer work environment, translating into significant cost savings for employers.

By combining quantitative data (such as satisfaction survey results) and qualitative insights (open anonymous employee comments), organizations can identify perceptions of unfair pay differences, unclear promotion criteria, limited career development opportunities, and a sense of exclusion from decision-making processes.

Statistical procedures such as regression analysis also enable deeper insights into predicting engagement based on satisfaction with critical aspects of the climate. The capuchin monkey experiment at the beginning of the text showed that one of the most important factors predicting satisfaction is certainly the perception of fairness. Systematic monitoring of these aspects allows organizations to detect challenges and develop targeted action plans to address them. Proper implementation of action plans ensures solutions that foster a sense of fairness and equal opportunities.

Equality and a sense of fairness: How to detect challenges?

Research shows that women in Croatia earn 11.2% less than their male colleagues, and the SELECTIO Women's Index highlights that the share of women in management is less than 20%. By regularly conducting organizational climate surveys, organizations can identify systemic challenges and even biases affecting equality in opportunities for development and advancement. Thus, survey results may show that women perceive fewer development opportunities compared to their male colleagues or feel that their contributions are less valued.

Detailed organizational climate and engagement surveys can also highlight a lack of opportunities for education and development. It is desirable to analyze satisfaction with education for successful leadership skill development and compare results at several levels. This provides information on whether, for example, women are less satisfied with opportunities compared to men. The next step is to determine whether they indeed have fewer opportunities and whether there is a need to introduce additional programs.

How do inequality and a sense of injustice impact organizations?

Inequality in rewards and a sense of unfairness are moral challenges that directly impact organizational results. Research shows that organizations with higher levels of equality report greater profitability and innovation. Conversely, a lack of transparency in rewards can undermine trust and employee engagement.

It is important to note that a sense of injustice often arises due to a lack of transparency in key processes such as pay, promotions, or career development. For instance, if employees do not understand the criteria by which their rewards or opportunities differ from their colleagues, a perception of unfairness arises, even in situations where differences are objectively absent.

Companies that implement follow-up activities have on average 10% higher employee satisfaction

Systematic climate and engagement surveys enable the identification of potential problems and dissatisfaction within the organization. Organizations that collect and analyze quantitative and qualitative data can identify patterns of perceived unfairness and take targeted measures to address them. Quantitative data reveal general trends, such as differences in perceptions of fairness among employee groups, while qualitative comments provide deep insights into specific problems. For example, analysis of results may reveal that women feel they lack sufficient career development opportunities or that promotion processes are not transparent.

Measuring organizational climate is the first step, but it is crucial to implement concrete action plans afterwards. Additionally, organizational climate and engagement surveys should be conducted regularly. Pulse Check surveys allow organizations to monitor the progress of implemented measures, ensure the sustainability of changes, and respond quickly to new challenges. Companies that conduct and implement follow-up activities after organizational climate and engagement surveys have on average 10% higher employee satisfaction year after year. The best improvements are seen in companies that regularly conduct annual comprehensive surveys and quarterly or semi-annual Pulse Check surveys to assess whether key priorities are being addressed and whether they are on the right path to implementing improvements.

Steps toward fairness and equality

In addition to surveying organizational climate and engagement, we have listed additional measures companies can take on the path toward building fairer, more transparent, and more equitable pay systems.

Analysis and reduction of the pay gap

By analyzing salary data, companies can identify where pay disparities exist and define steps to reduce these differences. The Equal Pay Champion certificate provides a structured process for identifying and addressing these discrepancies, increasing employee trust and ensuring compliance with EU Directives that will come into force in less than two years. Some companies have already taken decisive steps in building more transparent pay systems and are now leaders in reducing pay gaps. These companies form the first generation of Equal Pay Champion certificate holders, and applications for the second generation of holders are open until December 15th.

Empowering women through mentorship

Mentorship plays a crucial role in developing leadership skills and confidence, especially for women who often face obstacles preventing their advancement. As many as 54% of women in leadership positions have stated that some form of mentorship was key to their career development. The SELECTIO Equal Play Mentorship program provides structured support for women in overcoming career barriers and is an important step toward successfully breaking the glass ceiling. It includes assessments and 360 evaluation, personalized development plans, and mentorship support to strengthen leadership competencies.

Management education through DEI programs

According to the ADP Research Institute, as many as 76% of workers would consider changing jobs if faced with gender-based pay disparities and the absence of DEI initiatives at their workplace. One of the common challenges in addressing workplace inequality is the unconscious bias of managers and employees. Diversity, Equity, and Inclusion (DEI) educations under the Future Resilience program help managers recognize unconscious biases and create more inclusive work environments by making fairer decisions in promotion, reward, and recruitment processes.

Measure the sense of fairness!

The capuchin monkey experiment reminds us of how universally important the sense of fairness is—without it, there is no cooperation. Organizations that recognize this dynamic and systematically work on measuring and improving their organizational climate lay the foundation for fairer and more productive work environments.

Fair work environments attract and retain the best talent—because who wants to be part of a team where cucumbers are handed out while others with the same results enjoy grapes? By investing in fairness, organizations not only increase productivity but also position themselves as leaders of positive changes that go beyond the business world and contribute to society as a whole.

Contact us for more information on how your organization can measure and improve its sense of fairness!

 

 

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