The perceived fairness of an employee's pay relative to what other employees are being paid for the same labor describes the concept of internal equity.

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Internal equity refers to the fairness of pay for employees within the same organization or company. It is based on the principle that employees who have similar jobs, skills, experience, and responsibilities should receive similar pay. Therefore, if an employee perceives that they are being paid fairly compared to their colleagues who perform the same work, then the organization has achieved internal equity.

The Perceived Fairness of an Employee's Pay Relative to What