The basic principle of equity theory is that workers try to maintain fairness between their efforts and their compensation compared to others in similar positions.

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The basic principle of equity theory is that individuals strive to maintain a balance between the inputs (efforts, contributions) and outcomes (compensation, rewards) they receive in comparison with others who are in similar positions. The theory suggests that individuals compare their levels of inputs and outputs with their colleagues or peers and may feel demotivated if they perceive inequity or an imbalance in the ratio. This motivation theory was suggested by J. Stacy Adams in the 1960s.

The Basic Principle of Equity Theory Is That Workers Try