Luckily, neither employees nor employers evaluate equity outcomes based merely on surveys; it is not like checking the price of a flat screen tv in an electronics store and choosing the one that best meets your requirements and budget. Other factors can go into the overall determination of fair and desired pay practices that satisfies both the employees and the organization, and by extension the Board and external stakeholders. Non-cash compensation and recognition vehicles can be powerful reward mechanisms; these can range from title, to vacation, personal development opportunities, new lateral assignments and other duties and responsibilities; (yes, reward results with more work – remember the lessons of Herzberg). It isn’t necessary to ‘be competitive’ with the market on every component of your total pay practices. Employees are quite capable of factoring into their equity calculation the benefits of non-cash ‘pay practices’ in addition to salary. But you have to tell them.
In these days of