Do you work in a fair workplace?

Analysis: everyone who has ever had a job knows how it feels to be treated unfairly at work, so how can employers strive to act fairly?

By Noreen Heraty and Donald Truxillo, University of Limerick

'It's not fair' is a common lament. It's one heard within families, amongst friends, within teams and across a range of social settings - including the workplace. Our sense of fairness emerges early in childhood, develops over time, and affects our attitudes and behaviour. We all seek to be treated fairly, and most employers strive to act fairly.

Yet everyone who has had a job knows how it feels to be treated unfairly at work. The potential for unfair decisions can occur throughout employment, such as hiring, promotion, pay decisions, work assignments (who gets asked to do what) and recognition. Our fairness antenna are especially triggered during times of organisational change. A case in point is the current move by many employers away from remote working.

In the workplace, fairness refers to the extent to which we perceive or believe that various decisions are fair. Research identifies as least four different types of fairness (often termed "organisational justice") that are useful for analysing what makes a workplace decision "fair."

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The first is outcome fairness. As workers, we think a lot about whether what we get from our organisation (an outcome) is fair, such as earnings, a bonus, a promotion, access to opportunities or treatment by others. We consider what we give to the organisation (our inputs) in comparison to what other workers give and receive. Outcome fairness also covers what we are asked to do (work duties) in comparison to what others do for the same outcomes (such as pay or recognition). For example, a worker who doesn’t get the promotion that they went for may feel hard done by. This may be even worse if they feel that the person who got the promotion was less deserving of it.

Second, process fairness refers to how decisions are made. Research shows that we care almost as much about the fairness of the process used to decide on an outcome as we do about the outcome itself. A worker who does not get the outcome they want is more likely to accept it when they believe that the process used to make the decision was fair. For example, a person may not get the promotion they wanted, but they will be more likely to accept the decision if clear, job-based criteria were used to make the decision, rather than some bias or favouritism.

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The third type of fairness is interactional fairness, which refers to how well we are treated during the decision-making process and afterwards. Using the same promotion example, a manager who treats the worker with dignity and respect, considers the worker's feelings, and takes the time to kindly and politely explain the basis for the decision, is likely to reduce some of the negative feelings that can result from an unwanted outcome.

Informational fairness is the fourth type of fairness. This includes providing adequate and timely information to explain the decision that was made. In the promotion example, this would include providing details about the criteria that were used to differentiate between applicants as well as feedback to the unsuccessful worker about their own performance or suitability for promotion.

While employers cannot always give positive outcomes, these examples show that they can be seen to be fair in other ways. This includes ensuring that the processes for making decisions are fair, that workers receive kind and respectful treatment, and that good communications are used throughout.

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Do workers' perceptions of fairness matter? Research has shown that they have important consequences for both workers and employers. Workers who feel unfairly treated are less likely to trust managers. Their motivation and performance levels fall, their job dissatisfaction rises and they reduce their efforts. They also tend to pull away from others, become less cooperative and help each other less. Workers may even quit their jobs if they feel really hard done by.

This perception of being treated unfairly can make people doubt their self-value, decrease their wellbeing and affect their physical and mental health. Organisations suffer too because this felt injustice can be seen in lower employee morale, reduced commitment, increased absenteeism, increased cynicism, reduced productivity, poorer organisational reputation, and even counterproductive behaviours such as retaliation and theft. Legal action linked with discriminatory or illegal decisions or practices is also possible. Job applicants who feel unfairly treated during hiring are less likely to recommend an employer or accept a job if one is offered.

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It’s important to remember that when it comes to perceptions of fairness at work, it really is in the eye of the beholder. That is, managers and workers may have different takes on what is fair. However, there are a few general guidelines that decision-makers in organisations should keep in mind:

· Make sure that decisions are impartial, unbiased, and based on accurate and timely information from as many different sources possible.

· Explain to workers how and why decisions are made.

· Be consistent in how procedures are applied across workers.

· Where possible, provide mechanisms for workers to be consulted or involved in important decisions that affect them.

· Treat everyone in a respectful manner – consider how a decision and its delivery may make a person feel.

· As a manager or decision maker, give some thought to how others might interpret decisions that you make or actions that you take.

Finally, remember that perceptions of fairness – and unfairness – are contagious within organisations and teams. But when there is a climate of fair decisions, good results accrue for workers, teams and organisations.

Dr Noreen Heraty is Head of Department of the Department of Work and Employment Studies at the Kemmy Business School at the University of Limerick. Prof Donald M. Truxillo is a Professor at the Kemmy Business School at the University of Limerick.

The views expressed here are those of the author and do not represent or reflect the views of RTÉ

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