«Summary. Pay inequality is common in most workplaces. You get paid significantly more than your subordinates, your boss gets paid more than you, and your boss’s boss gets even more. At some point your employees have wondered about your salary – and their peers’. Should you be worried about that? Recent research sheds some light on this question. Researchers conducted an experiment with a sample of 2,060 employees from all rungs of a large commercial bank in Asia. They found that employees tended to underestimate the pay of their managers, but learning the actual amount led them to work harder. However, while people seemed to be fine with vertical inequality, they had more of a problem with horizontal inequality. Finding out peers get paid more had a negative effect on employees’ effort and performance». Saiba mais.
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