One of the most well-known workplace culture surveys (not ours at Choose People) asks team members to rate this statement:
“I am paid fairly.”
Let’s pause right there.
Be careful what you assess.
Why? Because the word “fair” is a comparison trap. Fair … compared to what?
- Compared to my coworkers
- Compared to my friends
- Compared to what I’ve heard others make in similar roles
- Compared to what I thought I’d be earning by now
You see the issue. That word—fair—is a mental slippery slope. And it’s a fast track to resentment, suspicion, and distraction.
What does fair compensation actually mean?
The truth is fair compensation isn’t about pleasing everyone or hiding pay data. It’s about clarity, consistency, and integrity in how compensation decisions are made—and how they’re talked about.
How to create a culture of fair compensation
Here are a few guiding principles to create a healthy, transparent culture around compensation:
1. You should be able to clearly explain why one team member is compensated more than another.
Not in vague terms, but with actual reasoning—experience, role scope, versatility, contribution, etc. If you can’t explain it, that’s a red flag.
2. Don’t discourage compensation conversations among team members.
Not only is the right to discuss salary protected by federal law (see the National Labor Relations Act), trying to ban pay discussions feels weird, controlling, and signals you’ve got something to hide—or that you can’t back up how pay decisions are made.
Assume people will talk. Be ready to stand behind your decisions.
3. Remember: Compensation isn’t a top driver of workplace happiness.
It doesn’t even crack the Top 8 Factors.
If you’re pouring your energy into comp adjustments as your main retention or engagement strategy, it’s likely a misfire.
In all the years we’ve been helping organizations build thriving workplace cultures, we’ve only recommended raises twice—and only because people were quitting over 50 cents and so the cost of turnover didn’t make sense.
What should you say instead?
Rather than asking your team if they feel “paid fairly,” try this instead:
“Overall, are you content with your compensation in proportion to the value you contribute to the organization?”
Now, to be clear, this isn’t a validated, research-based survey question (like what we use in the Choose People Culture Audit)—but it can surface useful insights.
And more importantly, it steers the conversation toward contribution and mutual value—not external comparisons.
Want to go deeper on compensation culture?
Check out Chapter 14 of Culture Works: How to Crack the Compensation Code, where you’ll explore:
- How to compensate for value and versatility
- Bandwidth compensation to retain your best producers
- How to determine raises and define compensation packages
- When to let people walk (and avoid extortion)
- What to watch out for in bonuses, incentives, and commissions
And if you’re curious about how to help your team understand how they're thinking about money, check out how to encourage money mindset awareness.
Compensation is hardly ever the issue truly draining—or driving—organizational culture. Get past the surface issues with our Culture Audit, which pinpoints what’s really affecting your team—and how to turn it around with a step-by-step plan.
