Equity Theory and Pay: The Employee Retention Strategies Most HR Teams Overlook
Equity theory explains why perceived pay unfairness damages retention even when compensation is technically correct; employees judge fairness by comparing their input-to-output Ratio against a peer’s, not salary in isolation. When that comparison feels unbalanced, engagement and trust erode quietly, often before HR notices. Effective employee retention strategies address this by pairing transparent, documented pay […]
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