Fairness of Pay Incentives: Industrial Employees in Israel Available to Purchase

It is widely agreed that employees’ attitudes towards pay incentives are an important determinant of their effectiveness. The perceived fairness of pay incentives and their determinants are examined. Based on theories dealing with the fairness evaluation of rewards, a number of hypotheses are formulated proposing that employees’ judgements of the fairness of pay incentives will be partly determined by their attitudes towards work and certain situational and personal background factors. The findings generally support these hypotheses. They indicate that the fairness judgements of pay incentive schemes and the considerations underlying such judgements are determined, among other things,by work motivation and by personal background characteristics such as age, education, number of dependants, organisational tenure and country of origin.