Why Should Organizations Fairly Reward Their Employees?

Proceedings of The 4th International Conference on Future of Business, Management and Economics

Year: 2022



Why Should Organizations Fairly Reward Their Employees?

Balsam Touaiti, Delphine Lacaze



Employees are the real wealth of organizations and their wellness is of utmost importance to the business success. Employees’ illnesses can engender huge business losses. During the COVID-19 crisis, the employees’ role was remarkable. Whether the organization experienced dramatic losses or enormous gains, employees made the difference by taking risks to ensure business continuity. And for that, committed employees ought to be acknowledged. Since employees’ perception of their own over-commitment face to the management nescience can deplete their resources, organizations must give priority to the well-being of their loyal employees and diminish the source of their ill-being.

Within the context of the COR theory, this research proposes to investigate to what extent an unfair reward system could threaten the employees’ resources and suggests a strategy to prevent this loss. Accordingly, this research aims at providing a better understanding of the factors influencing employee wellness, notably when rewards are not perceived as up to the employees’ efforts.  The consequences at work are analyzed through the employees’ emotional responses. A mixed method design is used based on four international built-up studies in the education sector.

Our research confirms that unfair reward is a stimulus for employee burnout which is consistent with previous research; a reward mismatching the perceived value of employee’s efforts at work promotes emotional dissonance and emotional labor which increases the risks of burnout. Our findings suggest that employers need to recognize employees’ efforts and propose prospective strategies to replenish employee resources in order to achieve a healthy organizational growth.

keywords: burnout, effort, emotion, health, ill-being .