How can equity theory help you create a fair and just team?

1 What is equity theory?

Equity theory was developed by psychologist John Stacey Adams in the 1960s. It is based on the idea that people compare their own inputs and outcomes with those of others in similar situations, and judge whether they are treated equitably or not. Inputs are the efforts, skills, and contributions that people bring to their work, while outcomes are the rewards, recognition, and feedback that they receive from their work. According to equity theory, people are motivated when they perceive that their inputs and outcomes are balanced with those of others, and demotivated when they perceive an imbalance or inequity.

2 How does equity theory affect your team?

Equity theory has several implications for your team motivation. First, it suggests that your team members will evaluate their own inputs and outcomes not only in relation to their own goals and expectations, but also in relation to those of their peers, managers, and other relevant groups. This means that you need to be aware of how your team members perceive their own and others' inputs and outcomes, and how they may differ from your own or objective measures. Second, it implies that your team members will experience different reactions to perceived inequity, depending on whether they feel underpaid or overpaid, and whether they attribute the inequity to internal or external factors. These reactions can include reduced effort, lower quality, increased absenteeism, turnover, resentment, or guilt. Third, it indicates that your team members will seek to restore equity by either changing their own or others' inputs or outcomes, or by changing their perception or comparison of inputs and outcomes. These strategies can have positive or negative consequences for your team motivation and performance, depending on how they are implemented and communicated.

3 How can you apply equity theory to improve your team motivation?

Equity theory is a powerful tool for improving team motivation by creating a fair and just team. To do so, you should communicate clearly and frequently about the expectations, goals, and criteria for inputs and outcomes. Make sure to distribute inputs and outcomes fairly and consistently, avoiding favoritism or discrimination. Involve your team members in decision-making and problem-solving, giving them a voice in influencing their inputs and outcomes. Additionally, foster a culture of trust and respect by building and maintaining a positive relationship with your team members. By applying the principles of equity theory, you can increase your team members' satisfaction, engagement, and performance.

4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?