Back to Blog Home

When Unequal Pay is Not a Violation

Equal pay has been in the news quite a bit lately, but there are some cases where unequal pay is actually fair.

More Companies are Jumping on the Performance-Based Pay Bandwagon

In just the last few years, companies choosing performance-based pay has increased by over six percent. Employers are offering bonus pay to those with successful performances and they have been seeing better results. This has proven to be a good way to retain good employees. Workers want to be noticed and rewarded for their hard work and being compensated monetarily is a great way for employers to show their appreciation. The modern compensation practice is a fair and attractive way to recognize the hard work of employees. You can give some of the credit to millennials for this as they have greater expectations in the work force, leading to more employers needing to change some of their policies to attract millennials and motivate them to perform better.

This Pay Model in No Way Violates Laws of Unequal Pay

It is illegal to pay an employee less because of their age, gender or race, but not based on their performance. Paying less to less productive employers does not break any laws and in fact, it has been found to come with many positives when it comes to performance-based pay. Fair is not always equal and the performance-based pay model is the perfect example. And it is also something that is actually wanted by most workers because many of them believe that you get paid for how you perform on the job.

The Pay Model is a Great Way to Motivate Employees

Employees work hard and when their hard work gets noticed, it motivates them even more. One of the best ways to reward hard workers is by showing them how much you appreciate them with the numbers on their paycheck. Providing bonuses and raises to the employees that stand out will provide more stability and a happier workplace.