ÒÝß[ŠÊ˜·³Ç

MENU

Why Smaller Companies Fosters Fairer Workplaces

 Why Smaller Companies Fosters Fairer Workplaces
A valuable trait that small organizations have over large ones is that by virtue of their size, it's easier to build and foster trust (think more transparency, a tighter-knit community, less separation between hierarchical levels, etc.). And because trust is the defining component of great workplaces, this advantage is noteworthy.

Data Shows Employees are Less Likely to Experience Fairness at Larger Companies

A valuable trait that small organizations have over large ones is that by virtue of their size, it's easier to build and foster trust (think more transparency, a tighter-knit community, less separation between hierarchical levels, etc.). And because trust is the defining component of great workplaces, this advantage is noteworthy.

We can see this phenomenon play out in the companies on last year's Â© Employee Survey statements:

  • Promotions go to those who best deserve them (an average 87% of employees across Small & Medium Workplaces believe this is true at their company, versus 75% at the larger 100 Best)
  • People avoid politicking and backstabbing as ways to get things done (89% SMW vs. 78% 100 Best)
  • Managers avoid playing favorites (83% SMW vs. 73% 100 Best)
  • I receive a fair share of the profits made by this organization. (83% SMW vs. 73% 100 Best)

In short, among even the best workplaces, a smaller company is more likely to be experienced as a fair one.

As described in the ÒÝß[ŠÊ˜·³Ç® Trust Model©, fairness is a key component of trust. At its heart, fairness addresses whether employees believe they are operating on a level playing field, and at ÒÝß[ŠÊ˜·³Ç® we assess several key components of fairness:

  • Equity (fair pay and profit sharing; equal opportunities; fair treatment across job roles)
  • Impartiality (fair promotions; lack of favoritism)
  • Justice (fair treatment regardless of personal characteristics; feeling one has the right to challenge unfair decisions).

Perception vs. Reality

The difficult part about perceptions of unfair treatment is that they are often just that: perceptions. And not just any perceptions, but ones that are attached to deeply rooted feelings of self-worth within the human psyche.

Take favoritism as an example; this is an area of fairness that is very difficult to manage. Not only does it rely on each employee's own perception of complex workplace dynamics, but it is nearly impossible for managers to make every interaction with employees equal at all times. Couple this with the fact that management decisions around promotions and other personnel issues cannot always be transparent, and it becomes easy for perception to become reality – and for the experience of fairness to plummet.

Best Practices for Promoting Fairness

It's clear from our survey results that the Best Small & Medium Workplaces are able to foster a strong sense of fairness despite these challenges. After all, it's worth the effort: there's nothing more demoralizing than a sense of injustice at work. So, how do they do it? Through programs and practices that strive to promote:

1. Fair Profit Sharing

Example: Best Medium-Sized Workplace  created the "Career Path Matrix", which builds on an established career path document to help employees understand the requirements of each position or ladder in their career. The Career Path Matrix is an entire grid for each job family that not only provides basic responsibilities and educational criteria but outlines the key differentiating factors necessary to take the next step in a career path. This enables employees to work with their manager and with a career coach in HR to define a goal plan/path to promotion that is clear, measurable and attainable.

3. Transparency in Communication:

Example: After results from their engagement survey at Best Medium Workplace