Final answer:
Determining the fairness of different percentage increases in salary for employees with the same job but in different pay quartiles depends on the goals of the organization, market considerations, and pay equity philosophy. It's essential to consider interrelated factors such as performance, market data, and living costs, while ensuring transparency with employees.
Step-by-step explanation:
Whether it is fair to give one employee a smaller percentage increase because his pay falls within the third quartile and a larger percentage to another whose pay is in the first quartile can be considered from multiple perspectives. If the goal is to maintain equity within the pay structure of the organization, adjusting the raises based on the employee's current standing within the pay scale might be seen as an effort to reduce wage gaps.
However, this assumes that the pay scale is aligned with the market and that each quartile accurately reflects the value of the work being performed.
When two employees perform the same job and both have exemplary performance ratings, factors to consider include internal consistency, market competitiveness, and the philosophy of the company regarding pay equity.
Job performance, market salary data, and cost of living adjustments could also play significant roles in determining the fairness of wage adjustments. In any case, transparent communication with employees regarding how raises are calculated is critical to maintaining a fair and positive work environment.