Sabina Shchehlova

O.H. Grosheleva, research supervisor

S.I. Kostrytska, language adviser
Dnipro University of Technology, Dnipro (Ukraine)

Pay equity as a means of motivating employees and its importance for the
efficiency of organization

Motivation is an essential part of effective work. Employees who are interested

in quality work and their own professional development have a major influence on
the overall performance of the company. Employee motivation is a key part of the
human resources policy of an enterprise. It is implemented in order to reconcile the
interests of the company with those of its employees. The company is interested in
qualitative, productive and effective work of the employee. The employee has a
vested interest in the satisfaction of his needs. The more effective the motivation, the
less staff flow and the more intensive the recruitment of new employees.
Motivation is classified into tangible and intangible motivation. Non-material
motivation includes career development, involvement of employees in meetings with
management, social benefits packages, friendly atmosphere in the workplace, etc.
Material motivation in turn is monetary and penalty system [] . This study will look at
the importance of financial motivation of employees, why fair pay is an important
part of overall motivation and the issue of the gender gap.
In 2022 "Googlegeist" conducted an annual survey of Google workers
regarding salary satisfaction. According to the survey, compared to the same survey
in 2021, 58% of employees said their pay was competitive, up from 53% in 2022. In
2021, 64% of respondents said their pay was "fair and equitable" and in 2022 the
percentage was 56%. Cloud storage workers, in 2021, 56% said their career
development process is fair and equitable, and in 2022 the percentage was 54% [2].
According to the CNBC team, which analyzed the survey results, the biggest
dissatisfaction was with compensation and execution. Competitive pay is a major
issue for all companies as they all struggle to recruit and keep their employees. When
we talk about financial motivation of employees, we should not only look at the pay
efficiency of employees.

Employee satisfaction with pay at Google

54%
Promotional process is fair
56%

56%
The salary is fair and equitable 64%

53%
Salary is competitive
58%

0% 10% 20% 30% 40% 50% 60% 70%

2022 2021
 Motivation affects whether an employee stays with the company at all. But
competitive pay and fair pay are not synonymous.
A fair wage is one where the amount of pay increases in line with the amount
of effort an employee puts in, regardless of other factors. A positive ratio of pay to
effort motivates the employee to work better. Also, fair pay is determined by
management's equity in the employee and the lack of gender segregation. Pay equity
indicates to employees that management appreciates them, regardless of gender, race,
age or other demographic status. For example, 43% of employees say they would
leave their job if they found out they were paid less than their co-worker of a
different gender or race if they did the same job [3].
The gender pay gap is still a problem in the modern world, despite the fact that
humanity now stands for gender equality. There is a common problem as the gender
pay gap. This gap is measured as the difference between the average gross hourly pay
of men and women, calculated as a percentage of the average gross hourly pay of
men (without special payments) [4]. The organization Slovo i Dilo has analyzed data
from the State Statistics Service of Ukraine per full-time employee. The results of the
survey show that , men's wages have been consistently higher than women's wages
from 2007 to 2021. Only the amount of pay has changed over the years, and the
difference between men's and women's wages has been between 17% and 27%. An
enterprise should create a positive image for itself. This will attract good employees
and potential investors for new projects [5].
Change in the average monthly pay of men and women in
Ukraine
16000 30.0%
14000
25.0%
12000
20.0%
10000
8000 15.0%
6000
10.0%
4000
5.0%
2000
0 0.0%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

men women the difference

In summary, it is important to note that fair pay plays a huge role in retaining a
company's workforce, increasing engagement, satisfaction and helping to reduce
brain drain. The employer must determine the pay according to the economic aspect
and the effort put in by the employee, regardless of age, gender, race or religion. By
fairly valuing an employee's performance, the company creates an encouragement for
his/her self-improvement. This also gives the organization an image of valuing its
employees and rewarding them fairly, which boosts team morale.
References:
1. Мотивація персоналу. Бухгалтерський облік, оподаткування. URL:
https://www.audit-it.ru/terms/trud/motivatsiya_personala.html (дата звернення:
28.04.2022).
2. Lodewick C. ‘Googlegeist’ survey reveals employees aren’t happy with
pay. FORTUNE. URL: https://fortune.com/2022/03/15/google-googlegeist-
survey-employees-unhappy-with-pay/ (date of access: 28.04.2022).
3. JOB SEEKER NATION SURVEY. When Change is the Only
Constant. JOBVITE. p 22
URL: https://www.jobvite.com/wp-content/uploads/2020/05/FINAL-Jobvite-
JobSeekerNation-Report1_5-11.pdf (date of access: 28.04.2022).
4. Gender Pay Gap. Federal Statistical Office.
URL: https://www.destatis.de/EN/Themes/Labour/Labour-Market/Quality-
Employment/Dimension1/1_5_GenderPayGap.html#:~:text=The%20gender
%20pay%20gap%20is,men%20(%20without%20special%20payments (date of
access: 28.04.2022).
5. Гендерний розрив в оплаті праці: як відрізняється середня зарплата жінок і
чоловіків в Україні. Слово і Діло.
URL: https://www.slovoidilo.ua/2021/06/10/infografika/suspilstvo/hendernyj-
rozryv-oplati-praczi-yak-vidriznyayetsya-serednya-zarplata-zhinok-cholovikiv-
ukrayini (дата звернення: 28.04.2022).