Research from global consultancy Bain and The Economist’s Intelligence Unit found that on average, 15% of a company’s workforce —around one in seven employees—is made up of exceptionally talented individuals.
Research from economists at the University of California, Berkley, found that employees who discover they are paid less than others doing similar work are less satisfied with their jobs.
Wharton management professor Matthew Tidwell notes that pay disparity can lead to “ resentment and ultimately to disengagement .” It can also hurt cooperation within teams.
When people can observe the productivity of their colleagues, the negative effects of unequal pay on employee morale disappear.
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