Equity theory postulates that the presence of inequity in a person is a motivation to achieve equity or reduce inequity.

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Equity theory suggests that people compare their own inputs and outcomes (inputs could include effort, time, skills, experience, etc. while outcomes could include pay, recognition, opportunities, etc.) to those of others in similar situations. If an individual perceives that they are underpaid or receiving fewer rewards than someone else who is performing similar work, they will experience a sense of inequity or unfairness. This feeling of inequity can motivate them to take actions to achieve equity or reduce the perceived inequality, such as negotiating for a higher salary or seeking opportunities for advancement.

Equity Theory Postulates That the Presence of Inequity in a Person