What does equity theory suggest drives employee motivation?

Equity theory suggests that employee motivation is largely influenced by perceptions of fairness in the workplace. According to this theory, individuals assess their inputs (such as effort, time, and skills) and the outputs they receive (such as salary, benefits, and recognition) in relation to the inputs and outputs of others. When employees perceive an imbalance or unfairness in this comparison, it can lead to demotivation, decreased productivity, and dissatisfaction.

Therefore, if employees feel they are being treated fairly compared to their peers, they are more likely to be motivated to perform well and remain committed to their work. Conversely, if they perceive unfairness in how they are compensated or rewarded relative to others, it can create feelings of resentment and consequently impact their motivation negatively. This understanding highlights the importance of fairness and equity in shaping workplace motivation.