How Do People Know Their Salary Is Fair?
by Miki Saxon
What exactly do people mean when they say they want to be paid fairly?
Generally speaking, people define “fair” relative to themselves and those around them.
Developers working in a small company don’t compare their salaries to the developers at Google or even to their bosses.
The comparison they do typically has two steps.
- First, they compare themselves to their peers, i.e., similar job, background, title, company, industry and location.
- Second, they compare their salary with the salaries of those they see as peers.
The comparison is possible because, no matter what company policy says, compensation is never really secret.
As long as salary differences are based on factual points, as opposed to charm, politics, or managerial whim, people will believe they’re being treated fairly.
Because they are.
Flickr image credit: Rennett Stowe
