Which term describes the fairness of pay related to employees doing similar work within the same organization?

The term that best describes the fairness of pay related to employees doing similar work within the same organization is internal equity. Internal equity focuses on ensuring that employees perceive their pay as fair when compared to the pay of others within the same organization who perform similar roles or have similar responsibilities. Achieving internal equity is essential for maintaining employee morale, satisfaction, and retention, as it fosters a sense of trust and fairness among staff members.

In contrast, employee equity and external equity relate to broader contexts. Employee equity typically refers to an individual’s contribution, and it may not strictly focus on pay comparisons within the same organization. External equity involves comparing pay rates to those of employees in similar roles in other organizations and is crucial for attracting and retaining talent in a competitive job market. Comparable worth is a concept that seeks to ensure that jobs of equal value to an organization are compensated equally, regardless of the gender or other demographic characteristics of the workers. However, it is a more comprehensive idea that extends beyond just an organization’s internal comparisons.