Pay Equity and Performance in the Public Sector

Synonyms

Bureaucracy; Equal pay; Government agency; Pay fairness; Performance-related pay; Public organization

Definitions

Pay equity :

Pay equity literally means “pay fairness.” The concept of equity implies that one receives proportionally fair outcomes in return for what one invests in a relationship or situation, when comparisons are made with appropriate others (Adams 1965).

Performance :

Refers here to job performance – those scalable actions, behaviors, and outcomes that employees engage in that are linked with and contribute to organizational goals.

Introduction

Public sector is commonly based on values of equality, integrity, dedication to others, and fairness. So, in most countries, pay equity in the public sector should not be a major issue if it was integrating these values and principles. But pay policies and practices in the public sector bring us to other realities. Historical practices, impact of traditions, economic crisis, lack of resources, and classical managerial...