What does equity theory suggest is the primary driver of employee motivation?

Equity theory posits that employee motivation is largely influenced by the perception of fairness in the workplace. According to this theory, employees assess their contributions and outcomes in relation to those of their peers. When individuals perceive an imbalance in the ratio of their inputs (such as effort, experience, and education) to their outputs (such as salary, recognition, and benefits) compared to others, it can lead to feelings of discontentment and decreased motivation.

Essentially, this theory highlights that motivated behavior stems from the need for equitable treatment and social comparison. Employees are not solely driven by their individual talents, company benefits, or personal aspirations; rather, they are significantly influenced by their perception of whether their work and rewards are on par with those of their colleagues. This focus on fairness and equity creates a critical understanding of how to manage team dynamics and employee satisfaction effectively.