When distributing bonuses or pay, how would you ensure perceptions of fairness?

ANSWER:

There are a couple of steps that may be useful. First, the organization should decide which factors should be compensated. Is it the performance level? Number of years of work experience? Abilities being used in the company? Pay should be commensurate with these inputs. Second, it is important to verify that the pay level is fair compared to how similar companies are paying similarly qualified positions. Ensuring that the performance evaluation system being used by the company is fair is a key part of ensuring pay fairness. Finally, it is important to recognize that guaranteeing pay fairness is an impossible task. Individual perceptions may vary and employees may differ in their beliefs regarding what should be rewarded. The organization should ensure that the basis for pay is justifiable to employees.