Fairness leads to higher levels of well-being and productivity at the Best Small and Medium Workplaces

Creating a workplace that employees perceive as fair is difficult.

According to a 2023 market survey of more than 4,400 workers, Great Place to Work®, only 36% of employees in the average company said they believed they were getting a fair share of the company’s profits. Only 51% say promotions are fair, and only 45% say their managers avoid picking favorites.

But in the 2023 FORTUNE Best Small and Midsize Workplaces™ list, things are different.

At these companies, 86% of employees felt they were getting their fair share of profits, 136% more than the typical U.S. company. A whopping 91% of employees think their managers don’t pick favorites, which is 105% higher than the typical workplace.

The graph shows that winning companies have higher levels of fairness compared to typical workplaces.

Provided by Great Place to Work Institute

Great Place To Work based this year’s 100 Best Small Workplaces and 100 Best Midsize Workplaces lists based on more than 242,000 individual survey responses from eligible companies, a study that shows the impact of equity on employee well-being and business success profound influence.

“When employees believe the workplace is fair, they trust leaders and organizations,” said Michael C. Bush, CEO of Great Place To Work. “Employees want to know they are paid fairly for their work, are treated fairly and equitably when considered for promotions, and have an equal opportunity to grow.”

Equity is the number one motivator for employees to go the extra mile at work and is a key element of innovation and productivity.

“Fairness may sound like a vague concept, but its presence or absence can have a real impact on business performance,” Bush said. “When you’re dealing with data, employees who believe in fairness in the workplace have a superior experience and deliver superior outcomes compared to their industry peers.”

When employees feel that people are being paid fairly for their work, they are 36 percent more likely to say that people go the extra mile at the company. When they believed profits were shared fairly, they were 28 percent more likely.

This graph discusses factors that make employees more likely to report that employees put in extra effort at their company.

Provided by Great Place to Work Institute

For workers themselves, higher levels of fairness lead to greater well-being. Employees are 2.8 times more likely to experience happiness when they say they receive their fair share of profits. When they believed the promotion was fair, they were 1.3 times more likely to experience happiness.

How to Improve Fairness

Here are some top ways to ensure employees believe their workplace is fair:

1. Clear and transparent communication around compensation

Just because your organization offers a competitive compensation package doesn’t mean your employees think the treatment is fair.

Do employees understand how your benefits can help them succeed?best company hugs salary transparencysupply Financial Education and Wellbeing Toolsand train managers to talk about total rewards.

Business has also benefited enormously. When employees said they received a fair share of profits, they were 28% more likely to say they had gone the extra mile for the company, and 46% more likely to say they stayed with the company long-term.

2. Open and inclusive promotion path

In the absence of information, employees often make false assumptions about the decisions that affect them. That’s why the best companies try to be transparent about the criteria behind their promotions.

crucially Review “Paths for Advancement”. Which employee groups are harder to find the higher you are in the organization?

Employees in small and medium workplaces are 1.8 times more likely to experience happiness when they believe they are treated fairly regardless of age. They were 1.3 times more likely to be treated fairly regardless of race.

To help everyone find opportunities for advancement, invest in mentoring and make the criteria for senior positions clear and available to all employees. Make sure all employees are aware of job openings and provide feedback when internal candidates are not selected.

3. Recognition of all employees regardless of their position.

Ensuring that your employees feel appreciated is not only good for morale, but also boosts it. It’s good for business.

When employees said everyone had the opportunity to receive special recognition, they were 1.5 times more likely to say that people went the extra mile.

Employees at all levels of the organization must feel valued and valued. When employees believe that anyone can be recognized, they are 1.2 times more likely to believe their work is meaningful –Key Drivers of Retention, Innovation and Happiness Across all companies and industries.

our research shows Best Endorsement Program Specific, timely and relevant to clear business objectives. Make it easy for employees to be recognized by managers and colleagues, and employees will reward you with first-class performance.

To learn how your business can become Great Place To Work Certified™ and apply to the Best Workplaces™ list, Start here.